COVID – 19: Some Considerations – Payroll and Insurance

In order to try and be pro-active and help our clients where we can; we have put together the following in order to provide some help and guidance. Please note that this is just that – help and guidance; if you want de facto consulting regarding your situation then please contact us and we can provide that. As each scenario is different we can only cover generics in a communication such as this. Please route this through me and I will ensure that it gets the appropriate attention from the right person.

  1. AS REGARDS WORKER EXPOSURE – see the annexure COVID-19 Guideline March 2020
    1. Ascertain the category that your workers are in and act accordingly
  2. AS REGARDS PAY AND RELATED ISSUES
    1. From a pure COVID-19 impact perspective – as things stand normal conditions per the Labour Relations Act still apply
    2. Normal sick leave regulations are in force
    3. Normal short-time and related regulations are in force
    4. There are some NEW UIF regulations regarding reduced working time
      1. An employee (i.e. contributor) who loses income due to the implementation of a duly arranged company policy which results in  reduced working time, is entitled to claim and receive UIF benefits, if that employees’ total income falls below the benefit level that the employee would have ordinarily  received if the employee had become unemployed (irrespective of that employee still being employed). It is however subject to that employee having sufficient credits available (i.e. as a result of their UIF contributions whilst being employed).
      2. The income received by the employee from reduced working time plus the value of UIF benefits calculated, may not exceed the benefits that would have been paid if the employee had become unemployed. Reduced working time benefits must be calculated based on the remuneration of the employee at the time that the reduced working time policy was implemented.
      3. The new UI-2.1, UI-2.7, UI-6A and UI-19 forms (see attached Gazette) cater for the recording of reduced work time.
    5. There are also 2 new forms in the case of a worker not being able to attend work if exposed to the virus
    6. We have included a batch of documents that need to be completed for your ease of reference.
  3. OTHER CONSIDERATIONS
    1. We also recommend you look at your insurance cover and see if there is cover for loss of profits; and if so what triggers this – if you need help in this area please speak with Wayne
    2. There is a Coranavirus Relief Fund that the Department of Small Business Development has announced. It would appear that it is aimed at offering relief at the repayment of debt. Nothing more is known. We as Trifin are monitoring this and will obviously bring it to the table should it be applicable.

With care during these times of uncertainty – still doing what we do best

Regards

Wayne and Jill

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