Lockdown day 6 1 April 2020 - Global Business Solutions
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Lockdown day 6 1 April 2020
Innovation and work-arounds
Innovation and work-arounds
Statistics paint a picture
4
Globally - predictive indicators
11 600 in SA? V 1353 current
58 000 in SA? V 1353 current
116 000 in SA? V 1353 current
https://www.healthcarebusinessinternational.com/exclusive-prediction-pandemic-turning-point-in-european-countries-and-the-u-s-is-expected-to-arrive-this-week-early-april/ 5
Global statistics
China
Germany
France
/Iran
https://covid19statistics.org/
https://epidemic-stats.com/coronavirus/
6
Global statistics
Almost 5%?
https://covid19statistics.org/
7
Global statistics
https://covid19statistics.org/
8
Global statistics
https://covid19statistics.org/
9
Statistics paint a picture, sometimes
Social distancing
and lock-down!
10South Africa
46 UP
www.nicd.ac.za
11South Africa
12A quick look at KZN
1314
https://www.nextbigfuture.com/2020/02/coronavirus- fatality-statistics-by-age-gender-and-conditions.html
Macro systemic
Workforce modelling, factors
variables Organisation-
specific factors
GDP-related impact Financial metrics
Inter-related User-centric
Lock-down duration
Infection escalation rate and threshold
(scenarios)
(timing)
Variables
Industry and sector Infection demographic impact
realities
(age, gender, pre-existing conditions)
Available remedies (workforce modelling,
Workforce predictive factors
tax, legal, LR, innovation, and impact on
(number, type, skills sets, demographic) etc) strategic imperatives including BBBEE etc)New developments
17Funding options (Rem-related) ❑ SARS (from 1 April) – R500 pm tax subsidy to employers of up to R500 pm for the next 4 months for employees earning below R6500 under ETI; ❑ SARS (from 1 April) – Accelerated payment of ETI in other words payment monthly as opposed to twice a year; ❑ CCMA Temporary Employer/ employee Relief Scheme – for employers facing retrenchments in general (will resume post COVID-19 and has been going for some time) ❑ SARS (from 1 April) – businesses with turnover below R50m pa allowed to delay 20% of their employee tax liability over the next 4 months and a portion of their provisional corporate income tax payments without penalties or interest over the next 6 months ❑ Employee retirement funds - employers experiencing financial headwinds and who are not in a position to pay their full contributions to employee retirement funds can access a temporary payment reprieve on condition they immediately engage with and reach agreement with retirement funds and submit agreements to the Financial Sector Conduct Authority (FSCA). This will prevent criminal (Pension Finds Act) and civil prosecution. In addition, any rule amendments associated with temporary absence and lay-off need to be submitted as well; ❑ Department of Employment and Labour – COVID-19 TERS UIF scheme – final regulations will be published tomorrow ❑ BCEA – No-work-no-pay (unpaid leave) | Annual leave | short-time | shift patterns and other work arrangements ❑ COIDA – Occupationally-acquired COVID-19 ❑ UIF – Short-time | COVID-19 TERS | Quarantine 14 days (no medical certificate) and +14 (medical certificate) |Illness ❑ RE-SET the level (freeze, OD, terms of employment, benchmarking, re-engineering)
Balancing the books – the remuneration deficit
Usual leviable payroll Funding options
❑ People percentage (payroll/ ❑ What employer can afford
revenue) ❑ Pay those that can work
❑ Total cost per employee remotely if ROI exists
❑ Access SARS, UIF, PAYE, etc
❑ Determine shortfall and
sustainabilityRight to strike?
Right to strike?
Yes, the right exists unless they have been
designated under s71(8) of the LRA by the ESC of
the CCMA.
But they would have to
stay in their homes!
20XYZ
2122
Transport
2324
General
25Early on 31 March 2020,
taxi strike averted?
2627
28
29
30
Putting the circle back into the square
The secret of
your future is
hidden in your
daily routine!QUICK GUIDE TO COVID-19
TEMPORARY RELIEF SCHEME 01.04.2020
VIA UIF
COVID-19 TOOLKIT SERIES
- Specifically applicable during the national lockdown period -
33Covid-19 Temporary Employer Relief Scheme
Directive was created to make provision for the: IMPORTANT TO NOTE:
• Payment of benefits to the Contributors who have lost ❑ Covid-19 TERS replaces the National Disaster Benefits
income due to Covid-19 pandemic; previously published by UIF
• Minimise economic impact of loss of employment ❑ Simplifies the process as it’s Employer-led & allows for a mass
because of the Covid-19 pandemic; application online
• Avoid contact and contain the spread of Covid-19 ❑ Normal TERS programme offered by the CCMA continues, but
during the process of application for benefit; is not applicable to the period of #lockdown
• Establish the Temporary Relief Scheme and set out the
❑ Confusion over past few days as there have been several
changes to the instructions and documents requested. Process
application process for benefits of the Covid-19
is under negotiation with NEDLAC and anticipated to be
pandemic and to alleviate economic impact thereof
finalised imminently.
• Online applications for benefits in order to avoid ❑ Don’t wait to apply – put your application in now, using the
contact during the national disaster period. latest documents (our toolkit) and we will keep you posted on
any changes
If you require assistance in managing/administering the Covid-19 Temporary Relief Scheme application process via UIF, GBS has a dedicated team ready to help you navigate this process,
including a detailed Application Toolkit available. For more information please contact: natalies@globalbusiness.co.zaCOVID-19 LOCKDOWN: ACCESSING COVID-19 TEMPORARY RELIEF SCHEME
Qualifying Criteria
In order to be eligible to access the Covid-19 Temporary Relief Scheme, the following criteria apply:
Closure of Operations Employer Conditions
❑ Company must be registered with UIF;
The employer’s operations must be closed (or ❑ Closure must be directly linked to Covid-19;
partially closed), for a period of up to maximum of ❑ Agree to MOA terms with UIF
three (3) months and suffer financial distress as a ❑ Comply with application procedure for financial
direct result of the Covid-19 pandemic. relief scheme
▪ Benefits are de-linked from UIF credits system, therefore the provision that four days of work equates to one day’s credit
(for up to 365 days) does not apply
▪ Does not apply to employees who will be fully paid by Employer during period but “part-payment” or “reduced hours” qualify
▪ Benefits will only pay for the cost of salary (calculated using UI Benefits Sliding Scale) for the employees during the temporary
closure of the business operations.
▪ Maximum benefit will be calculated on a salary cap of R17 712 per month (est. R6700 benefit per month), but lowest wage earners
protected with at least minimum payment of R3500 per month.
▪ For those with variable earnings, including commission-only (average over past 6 months used to calculate “remuneration” figure)
▪ Does not apply to any employees who are employed after the #lockdown period.COVID-19 LOCKDOWN: ACCESSING COVID-19 TEMPORARY RELIEF SCHEME
Key Terms & Conditions
The details of the MOA are still under discussion at NEDLAC, but primary terms & conditions are:
❑ Employer would NOT be eligible to apply if the Bargaining Council in their sector has concluded an agreement with
UIF in order management benefits payment to employees in the sector
❑ Management of the “unusual” process: i.e. payment of benefits en masse to employers for onward distribution to
employees
❑ Ensure correct use of monies paid out under Covid-19 TERS
▪ MUST be paid to employees for purposes as per Act, i.e. to assist with financial hardship related to income loss
❑ Auditable accounting procedures Different versions have been
shared over past week. It is our
▪ Clearly auditable via separate management accounts/ledger
understanding that when the
▪ Special / dedicated bank account – currently under question as admin onerous
final terms are concluded at
❑ Agreement to pay back any under-utilised funds paid to Employer NEDLAC that the final single
terms will be applicable to all
❑ Outline processes, timelines and submission requirements (documents) employers and supersede any
❑ Enable the agreement to apply for up to a maximum of three (3) months outdated MOA signed.
- NOT APPLICABLE TO MICRO EMPLOYERS AS UIF WILL PAY EMPLOYEES DIRECTLY -
If you require assistance in managing/administering the Covid-19 Temporary Relief Scheme application process via UIF, GBS has a dedicated team ready to help you navigate this process,
including a detailed Application Toolkit available. For more information please contact: natalies@globalbusiness.co.zaCOVID-19 LOCKDOWN: ACCESSING COVID-19 TEMPORARY RELIEF SCHEME
Application Process 1
Employers shall report their closure to Covid19ters@labour.gov.za and will receive an automatic reply outlining
the application process (as illustrated below)
3
Employer
with Less 4a UIF will pay
employees directly
Docs Required UIF will download completed
template to process claim:
than 10
employees
into nominated bank
accounts
Permission (from CEO) granted to individual • Calculation of benefits amounts
Letter of Authority to lodge claims on behalf of Company using Income Replacement Rate
sliding scale Employer with more than 10 employees
MOA with UIF sets out the terms relating to • Benefits calculated on maximum
MOA between participation in Covid-19 TERS. Employer will Capped Salary (R17 712)
•
Employer & UIF be required to confirm agreement with terms
& conditions electronically.
Sector Minimum Wage or National
Minimum Wage
(no less when IRR calculated)
4b UIF will provide amount to be paid per
employee & request invoice from Employer
to transfer total amount.
Complete template with following info:
Prescribed template • Employer details
containing critical
Employer Employee
•
•
Period of closure
Employee details
5 Employer sends invoice to UIF.
information •
•
Remuneration received by Employees
Minimum Wage (sector specific)
2 Email Application & Documents
6 UIF deposits total amount into nominated
Covid19claims@labour.gov.za Employer bank account.
• Proof of remuneration to employees in
Supporting form of 3 months Payroll/Bank Statements
Information • Confirmation of Employer bank account in
form of latest certified bank statement
7 Employer pays employees into their bank
accounts and sends proof of payment to UIFApplication Toolkit: Submission Checklist
There are differences for employees with less than 10 employees and those with more
If you require assistance in managing/administering the Covid-19 Temporary Relief Scheme application process via UIF, GBS has a dedicated team ready to help you navigate this process,
including a detailed Application Toolkit available. For more information please contact: natalies@globalbusiness.co.zaApplication Toolkit: Letter of Authority
Applies to both Large and Micro Employers
❑ Company Letterhead
❑ Full details of the nominated/authorized representative
❑ Contact details of nominated/authorized representative
❑ Signed by BOTH CEO and CFO
(or equivalent in your business)
❑ Suggest that you save it in PDF, especially if it contains
electronic signatures
If you require assistance in managing/administering the Covid-19 Temporary Relief Scheme application process via UIF, GBS has a dedicated team ready to help you navigate this process,
including a detailed Application Toolkit available. For more information please contact: natalies@globalbusiness.co.zaApplication Toolkit: Data Guidance Note
Format differs considerably between Large & Micro Employers
❑ File must be named specifically
❑ Format in which data is captured and saved is critical
▪ Header and Footer rows in exact format must be included
▪ Saved as .csv for Large Employers with VERY specific pipe [|] delimiter chosen
▪ Different date formatting requirements
▪ Format for Rand figures to exclude commas and R-sign, i.e. 3500.00
❑ Monthly Remuneration figure must be given
▪ For variable income earners, use average of past 6 months
▪ UIF will pro rata based on length of claim
❑ Income during leave period must be given
▪ This is whatever remuneration the individual will receive during lockdown, whether
part-payment, payment for reduced hours, value of paid leave, etc.
❑ MUST include Sector Minimum Wage figure otherwise claim will be
rejected. Guidance is provided on how to calculate.
❑ Banking information which is given (Employer vs. Employees)
If you require assistance in managing/administering the Covid-19 Temporary Relief Scheme application process via UIF, GBS has a dedicated team ready to help you navigate this process,
including a detailed Application Toolkit available. For more information please contact: natalies@globalbusiness.co.zaApplication Questions
Key questions as we apply whilst awaiting finalised MOA/terms:
• Special Bank Account
In this regard, there already seems to be an indication from UIF (in their most recent Auto Response) that the special bank account is only applicable to
Bargaining Councils. Our recommendation at this stage is that, if you don’t have a special account available, to use your normal payroll bank account for
this application now. The primary requirement will be to ensure that you can ‘account’ for the C19 TERS funds and disbursement thereof to employees
easily for audit purposes. This will remain even if the special banking account requirement is foregone.
• Claiming if your company is only experiencing part-closure
This would apply for organisations where some employees, due to the nature of their work, may be able to continue to work (and be paid) remotely.
Others, such as those in production, may not be able to work away from their usual workplace, and would therefore be liable for “no work, no pay”
principle treatment. Conversely, for those declared an essential service, some employees may be working during this period and receiving their usual
remuneration, whilst others (perhaps in non-essential areas, such as marketing/finance) will be subject to reduced or “no work, no pay” principle
treatment. You can, as we understand, claim only for those employees who are negatively impacted either by loss of income (total or partial) or subject
to reduced work hours.
• Claiming for employees who are receiving part-payment
We understand that the income relief is intended to assist employees who are prejudiced as a result of the Covid-19 and the lockdown period. There is
no clarity on whether there is a threshold applicable, i.e. if a company is paying more than 50% of normal salary, to claim. Rather, we recommend that
where employees are not receiving their usual full remuneration, you can claim, understanding that claim benefits will be limited to the sliding scale
which for employees earning more than R17 712 will be capped at approximate R6500 per month.
If you require assistance in managing/administering the Covid-19 Temporary Relief Scheme application process via UIF, GBS has a dedicated team ready to help you navigate this process,
including a detailed Application Toolkit available. For more information please contact: natalies@globalbusiness.co.zaEast London Durban Port Elizabeth Johannesburg Cape Town
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trainingel dbnmarketing pemarketing jhbmarketing infoct
@globalbusiness.co.za @globalbusiness.co.za @globalbusiness.co.za @globalbusiness.co.za @globalbusiness.co.za
www.globalbusiness.co.za
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