Unemployment Insurance Fund is set-up ‘to provide for the payment from the Fund of unemployment benefits to certain employees, and for the payment of illness, maternity, adoption and dependant’s benefits related to the unemployment of such employees’.
All companies and households who employ any amount of employees has to pay over 2% of the monthly salary of employees to the Department of Labour. This together with a declaration from the employer is kept by the department.
Compliance Certificate
The Department of Labour has now announced that companies will need a UIF Compliance Certificate which will be issued to companies on an annual basis.
Should you get a visit from a Departmental Official you will be asked to show this certificate which will show compliance to UIF regulations.
The Process
Companies will need to apply for the Compliance Certificate annually by sending a request via e-mail to compliance@uif.gov.za.
You will receive a response to acknowledge receipt of your application and an application form will be attached.
You will then complete the form and send it back to the e-mail address with all required documents and receive a Compliance Certificate from the DoL.
According to the department this process should take 10 working days.
Documents to be used
You will receive an application form and sworn affidavit to complete and need to send a valid Tax Clearance Certificate with this.
If your employee’s declarations and contributions are up to date you will receive a compliance certificate within 10 days, if not, you have to get these up to date or you will get a 30day period to comply.
The Ups and Downs
This is a new process from the Department of Labour and we do understand that by having this document your inspections will be easier. But the question lingers in the back of the mind … will the department be able to keep up with a growing demand of such letters?
In our office we have started the process for ourselves – as a test for our clients too – we will keep you posted on the process and the feedback received from the department.
Further Information
For further information, please visit the website www.ufiling.co.za to register and declare employees or visit www.uif.gov.za for more information on this Compliance Certificate.