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How to Claim UIF via TERS: Bargaining Council’s Step by Step Advice and Assistance


The Department of Labour has published new regulations which outline South Africa’s new Covid-19 Temporary Employee/Employer Relief Scheme (TERS). The regulations note that during the country’s 21-day lockdown, companies will have to shut down and employees laid off temporarily. While employers are encouraged to continue to pay employees, where this is not economically possible, the Department of Labour says it has created a special benefit under the Unemployment Insurance Fund (UIF) as per the TERS.

The National Bargaining Council for the Hairdressing, Cosmetology, Beauty and Skincare Industry do not have a MOA with the Department of Labour in place. This is an item we will be looking at in future, however, for now we urge you to please apply to this scheme as an employer.

How the scheme works

• Should an employer as a direct result of Covid-19 pandemic close its operations for three months or lesser period and suffer financial distress, the company shall qualify for a Covid-19 Temporary Relief Benefit;

• The benefit shall be delinked from the UIF’s normal benefits and therefore the normal rule that for every four days worked, the employee accumulates a one day credit and the maximum credit days payable is 365 for every four years will not apply;

• The benefits will only pay for the cost of salary for the employees during the temporary closure of the business operations;

• The salary benefits will be capped to a maximum amount of R17,712 per month, per employee and an employee will be paid in terms of the income replacement rate sliding scale (38%-60%) as provided in the Unemployment Insurance Act;

• Should an employee’s income determined in terms of the income replacement sliding scale fall below the minimum wage of the sector concerned, the employee will be paid a replacement income equal to the minimum wage of the sector concerned;

• For the company to qualify for the temporary financial relief scheme, it must be registered with the UIF, must comply with the application procedure for the financial relief scheme, and the company’s closure must be directly linked to the Covid-19 pandemic.

Illness benefit

Where an employee is in quarantine for 14 days due to Covid-19 pandemic, the employee shall qualify for illness benefit.

In terms of the regulations:

• Confirmation from both the employer and the employee must be submitted together with the application as proof that the employee was in an agreed precautionary self -quarantine for 14 days;

• In this instance, the confirmation letters from the employer and employee shall suffice;

• Should an employee be quarantined for more than 14 days, a medical certificate from a medical practitioner must be submitted together with continuation form for payment

How to apply

Employers can apply by reporting their closure by emailing and there shall be an automatic response outlining the application process.

Employers will be required to furnish the Unemployment Insurance Fund with the following completed documents:

• Letter of authority from the company;

• Signed Memorandum of Agreement (MOA) from the employer with the UIF (only of more than 10 employees)

It should be noted that an employee who is being paid by the employer during this period is not entitled to this benefit.

When you send a mail to, the below is what is sent to you:

Dear Employer

C19 TERS: Temporary Employee / Employer Relief Scheme

The request for financial relief under the C19 TERS scheme is acknowledge. Kindly note easy aid to assist the employer to access the employee benefit during the closure period

The key documents to submit or complete

• Letter of authority ,on an official company letterhead granting permission to an individual specified to lodge a claim on behalf of the company

• MOA ( completion of the agreement between UIF , Bargaining Council and Employer )

• Prescribed template that will require critical information from the employer

• Confirmation of bank account details in the form of certified latest bank statement

• Evidence / payroll as proof of the last three months employee(s) salary(ies)

Please ensure all documents are attached and mail to

Further, ensure correct completion of documents needed and take care when indicating the National Minimum wage. This is crucial and incorrect stated values might result in serious delays in the processing of the benefit payments

The means to payment is critical and provide banking details as per the mode selected, example ,if the payment should go to the employer, then the employer special banking account should be given.

However, proof of payment is required to satisfy that the payments indeed went to the employees. This is also critical, if further payments are required

Please note the enquiry telephone to enquire on the claims lodged: 012 337 1997

Please click on the links below to download the required information:

MOA TERS (Only needed if you have 10 or more employees)

Should you need any assistance with the documentation, please feel free to send a mail to and a contact person will be appointed to assist you.

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