UNEMPLOYMENT INSURANCE LEGISLATION

>>  UIF government website

Why we have an Unemployment Insurance Fund:  

The government established the Fund to assist those who could lose their jobs or stop receiving a salary for a period of time as a result of -

• pregnancy, 

• illness, 

• adopting a child under the age of two years, or 

• upon the death of the breadwinner of the family.

5 types of benefits provided by the Fund: 

• Unemployment benefits – If you lose your job you must apply within 6 months of becoming unemployed.  You can claim benefits for up to 34 weeks (238 days).

• llness benefits – If you are ill you can claim if you are unable to work for more than 14 days and not receiving a salary or receiving only a part of your salary from your employer. Illness benefits cannot be claimed is the contributor refuses to undergo medical treatment.

• Maternity benefits – When you are due to have a baby you are entitled to 17 weeks (121 days) maternity benefits.  If you have had a miscarriage you can claim for 6 weeks (42 days).  Maternity benefits are separate from ordinary unemployment benefits.  

• Adoption benefits can be applied for when you adopt a child under the age of two years and take unpaid leave or receiving only a portion of your salary while you are at home caring for the child.  Only one parent may claim.   Benefits are only payable if the child is adopted in terms of the Child Care Act and  the period that the contributor was not working was spent caring for the child.

• Dependents benefits can be applied for if the person who has been financially supporting the household dies.  The spouse of the deceased can claim the benefit even if he or she is in employment.  The application must be made within 6 months of the date of the death of the deceased contributor.  If the surviving spouse does not make an application within 6 months, a dependent child under the age of 21 years and includes any person under the age of 25 years who is a learner and who was wholly or mainly dependent on the deceased, can apply for the benefits.  The application must be made within 14 days after the 6-month period has expired, during which the spouse should have applied.

Benefits can be claimed when:

Benefits may be claimed for any period of unemployment lasting more than 14 days, if -

• The reason for the unemployment is the termination of a contract of employment, dismissal of the contributor or insolvency;

• Application is made in accordance with the prescribed requirements;

• The contributor is registered as a work-seeker with a labour centre established under the Skills Development Act;

• The contributor is capable of and available for work.

A contributor is not entitled to a benefit when:

• If the contributor is receiving a monthly pension from the state.

• If the contributor is receiving payment from the Compensation Fund for illness or injuries that caused the temporary or total unemployment of the contributor.  

• If the contributor is receiving benefits from any other scheme established by the Labour Relations Act.  

• If the contributor resigns from employment.  

• If the contributor fails to comply with the provisions of the Act.  

• If the contributor is suspended from receiving benefits because the contributor has been caught working and collecting benefits or committed fraud.  (In this case the Unemployment Insurance Commissioner may deny a contributor access to the fund for a period of up to five years.)

• If the contributor fails to report at the times and dates stipulated by the claims officer.

• If the contributor refuses without just reason to undergo training and vocational counselling for employment.

Amount of payment by the Fund:

Credits are given to the worker as they work and contribute to the Fund.  For every six days you have worked you get one day’s credit up to a maximum of 238 days.  To build up the maximum credits you have to work for four years.  If you have worked for less than 238 days you can claim for the number of days credits you have built up.  In the past, everyone received a fixed benefit of 45% of his or her salary (up to the set maximum).  This has changed - now benefits are calculated on a sliding scale dependent on your salary.  The benefit rates range from 38% for the highly paid workers (earning more than R97 188 per annum, R8099 per month or R1869 per week) to 58% for the lowest paid workers.

Documents needed to apply for benefits:

Effective date:  

Changes in the Unemployment Insurance Legislation in terms of the new Unemployment Insurance Act (Act 63 of 2001) came into effect from 01/04/2002. 

This document is based on information provided by the Department of Labour.  

>>  UIF benefits