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DEPARTMENT OF LABOUR UNEMPLOYMENT INSURANCE FUND

DEPARTMENT OF LABOUR UNEMPLOYMENT INSURANCE FUND. OPERATIONS 15 August 2012. INTRODUCTION. Operates on insurance principles Provides defined contributions & benefits Governed by two Acts (UIA & UICA) Program within Department of Labour Accounting Authority

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DEPARTMENT OF LABOUR UNEMPLOYMENT INSURANCE FUND

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  1. DEPARTMENT OF LABOURUNEMPLOYMENT INSURANCE FUND OPERATIONS 15 August 2012

  2. INTRODUCTION • Operates on insurance principles • Provides defined contributions & benefits • Governed by two Acts (UIA & UICA) • Program within Department of Labour • Accounting Authority • Purpose: To provide effective short-term unemployment insurance to all workers who qualify for unemployment and related benefits. • The UI Fund : Director General • Managed by UIC & Answerable to UIF Board and Parliament • Adjudication of Claims: Appointment of Claims Officers • 2002: New legislation & subsequent Amendments introduced.

  3. LEGISLATIVE FRAMEWORK Unemployment Insurance Act, 2001 (Act 63 of 2001) & Unemployment Contributions Act, 2002 (Act 4 of 2002) • The Unemployment Insurance Fund (UIF): Established itoSection 4(1) of the UI Act, 2001 (Act 63 of 2001), as amended. • The Act empowers the UIF to register all employers and employees in South Africa. • The Unemployment Contributions Act, 2002 (Act 4 of 2002) • Empowers SARS Commissioner to collect monthly contributions from both employers and workers. These contributions are utilized to pay benefits and any other expenditure reasonably incurred relating to the application of this Act

  4. EXCLUSIONS • Not all employers/employeescontribute to the Fund. • Contributors are individuals who are employees but excluding – • Employed for less than 24 hours per month.   • Learnerships in terms of the Skills Development Act.   • Public service employees in national and provincial government.  • Foreign Nationals who are to be repatriated at the end of their contract. • The President, a Minister, member of the National Assembly, a Premier, … , a member of a provincial legislature, • A member of a municipal council and members of the Council of Traditional Leaders.

  5. OBLIGATIONS:FUND • Fund must maintain a database of all employees– • Statistics • Monitor risk exposure and ensure financial viability • Determine contribution liability of employers • To control and administer the approval of benefit claims

  6. OBLIGATIONS: EMPLOYER • Employers must: • Register • Declare employee details • Pay contributions to SARS or the Fund.

  7. REGISTRATION If you have employees who are employed by you for more than 24 hours per month, you are required by law to register with the Unemployment Insurance Fund Registration should be done as soon as business activity commences

  8. REGISTRATION • Different ways to register with the UIF. • By e-mail: Webmaster@uif.gov.za • Sending forms through post:UIF, 94 Church Street, Pretoria, 0052 or P.O Box 1851, Pretoria, 0001 • Registering at a Labour Centre: • UIF will create a unique reference number and it will be forwarded to you.

  9. UIF DECLARATIONS • Declarations must reach the Fund before 7th of each month • Types of Declarations: • Electronically using e-mail, or • Electronically using FTP, or • uFiling • (Manual UI 19’s)

  10. UIF DeclarationsWhich Employees must be Declared? • Employers must declare all employees (Individuals who have an entitlement to remuneration) – • “Normal” employees • Casual & Part time workers • Foreign workers • Seasonal workers • Farm workers • Labour broker workers • Domestic workers

  11. CONTRIBUTIONS • The UICA governs the payment of contributions. • All employers must pay contributions either to SARS or the Fund • Late or non-payment attracts penalties and interest. • Contribution basic principles - • Employer & Employee: Contribution = 1 + 1% per month of ‘remuneration’ • Current ceiling = R 12 478 pm • Employer is liable to deduct and pay contribution

  12. U-Filing • U-Filing is a system developed by the UIF for employers to submit their employees information(declarations) and to pay contributions To access the U filing website the employer must first: • Register for UIF at their nearest Department of Labour branch • A valid UIF reference number will be issued by the Department of Labour (UIF) • Employers must have access to the Internet to be able to activate their uFiling account

  13. Virtual Office • The Virtual unemployment portal creates a single integrated service via the existing U-FILING system through which unemployment claims can be reconciled with employer’s declarations. • Any accredited person with internet access use the facility.

  14. IMPORTANCE The new system electronically connects the unemployed with their employers, it provides for:- • real-time declarations and updates • speedy claim processing • Tracking of all claims through the issuing of unique reference numbers.

  15. Contact Details www.ufiling.gov.za Call Centre Number: 012 337 1680

  16. THANK YOU

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