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South Africa

Big companies fail to pay UIF to workers, ENCA reports

It is confirmed that the UIF (Unemployment Insurance Fund) has paid out a total of R21-billion to 3, 6 million workers since April for the COVID-19 TERS relief payment. Most companies failed to produce documentation as there are over 725,000 pending UIF claims.

UIF Commissioner, Teboho Maruping told ENCA that they have ‘added a clause that we are going to audit their books. We are going to go into their bank account to confirm if money is supposed to go where it’s supposed to go. If that has not happened, we may need to take them to court, we may even have to blacklist some of these employers or even take them to court to be imprisoned,’

The commissioner confirmed that it’s mostly big companies not complying and paying what due to their employees.

He said ‘What bothers us is the fact that you have a big employer who would able to do such a thing. It’s unthinkable that someone will risk a brand name and do such a thing,’

A while back, the Minister of Employment and Labour Thulas Nxesi said in a statement that most companies have been accused of not paying the workers what is due to them.

“It is alleged that there are companies that have not paid the workers what is due to them. We are aware of some companies allegedly loaning employees the money and that is not legal. We are also aware of other companies that are allegedly paying part of the money and not the full amount, as well as companies using the money for something else other than the intended purpose. If this all these allegations are true, we appeal to companies to do the right thing still,”

The UIF has introduced a fraud system according to the UIF Commissioner, Teboho Maruping – where people can report UIF cases.

You can report employees who you suspect of fraud by calling the UIF’s call centre on 0800 3007 – you can check your company here.

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