FNB Retains UIF TERS Funds paid for Employees

UIF TERS fund payment made into our FNB business account, which is overdrawn has not been released for payment to employees. FNB said a secondary account needs to be opened, this is however incorrect and against the act / law.

On 25 March 2020, the Minister of Employment and Labour signed a directive implementing the Unemployment Insurance Fund (UIF) C19-TERS[1] programme. An amendment to this directive was Gazetted on 8 April 2020 (signed by the Minster on 6 April 2020). A further two directives were signed on 16 and 20 April 2020 respectively, however these are yet to be Gazetted. There was some initial confusion, however on 29 April 2020, the UIF issued a new FAQ publication, which has answered some questions for employers wishing to claim from the UIF, and is in line with all four Directives issued. Important Clarifications: As mentioned in our previous alerts, the UIF landscape has been very fluid since the advent of COVID-19(see previous alerts attached). — The employer does not require a dedicated bank account for sole use of the management of UIF benefits received from the UIF, but must be in a position to track the payments and report to the UIF on these if requested.

I have however opened a secondary account for the funds to be released, but I am still waiting for the funds so I can pay staff who need to live.