DEPARTMENT OF LABOUR UNEMPLOYMENT …

1 DEPARTMENT OF LABOURUNEMPLOYMENT INSURANCE FUNDUI Act Amendments2UI ACTO perates on insurance principles Provides defined contributions & benefits Governed by two Acts (UIA & UICA)Program within DEPARTMENT of LabourAccounting AuthorityPurpose: To provide effective short-term UNEMPLOYMENT insurance to all workers who qualify for UNEMPLOYMENT and related UI Fund : Director GeneralManaged by UIC & Answerable to UIF Board and ParliamentAdjudication of Claims: Appointment of Claims Officers2002: New legislation & subsequent Amendments introducedAMENDMENTS The Intention of the UIF AmendmentsIn order to improve service delivery by the Fund, the UNEMPLOYMENT Insurance Board decided to recommend the Act should be amendments to the Act need to address the issue of workers who are presently excluded in the Act and by so doing to conform with the International LABOUR Organization standards; Improve payment of benefits to contributors.

2 And extend the period within which benefits are comply with the Constitution of the Republic of South Africa, the Act had to address the exclusion of the civil servants in the TheproposedamendmentstotheActdealwithanu mberofissuesnamely:a)Section3 Includeemployeesonalearnershipandpublics ervantsonly2exclusions Employeesworkinglessthan24hours MembersofParliament,Cabinet,ministers, ) to the ActAmendments )Section12 Providingforthepaymentofbenefitstocontri butorswholosepartoftheirincomeduetoreduc edworkingtimes, Toprovidefora66%fixedrateofthepaymentofm aternitybenefits. Paythefirst238daysataratebetween38 60%andthenfrom239to365daysataflatrateof2 0%1)theactwillnowmakeprovisionforemploye esonshorttime2)maternitybenefitswillbepa idonaflatrateof66%,andtheslidingscalewil lnotapplytomaternitybenefits3)Between239 to365dayswillbepaidat20%5 Amendments Section13(3)Creditsarecalculatedatarateo f1.

3 4inafouryearcyclefromthedateofunemployme ntuptoamaxcimumof365daysCreditsclaimedin the4yearsprecedingthedateofapplicationwi llbesubtracted,exceptinthecasewherethere wasamaternityclaiminthelast4years )Section17 Theperiodisextendedfrom6monthsto12months toapplyforunemploymentbenefitsg)Section2 0 Toprovidethatacontributorisentitledtoill nessbenefitsifthedaysofillnessarelesstha nsevendays7 Amendments )Section24 A contributor who had a miscarriage in the 3rdtrimester is also now entitled to maternity benefits for the full period A contributor must have worked at least 13 weeks before the date of )Section25A contributor can apply any time before or after the childbirth, provided application is made within 12 months after continuedj)Section30 Extendingaperiodinwhichthedependentsmaya pplyforbenefitsonbehalfofthedeceasedfrom sixmonthsto18months.

4 Section33 Prohibitinganyagencyorapersonpurportingt obeactingonbehalfoftheapplicanttochargea nyfeeagainsttheapplicant.(UIFservicesare freeandcurrentlytheAgencieschargesclaima ntsmoneytoassisttheminlodgingclaimsonthe irbehalf)9 Amendments )Section56 Employersmustnowdeclarealltheiremployees beforethe7thdayofeverymonth Theministerwillissueregulationsonspecial dispensationapplicabletodomesticemployer sandsmallbusinessesorenterprisesregardin gthesubmissionofinformationinsubsection3 10 Thank