News

South African Engineers’ and Founders’ Association

28 April 2020

The metal and engineering industry is now under more pressure than ever before, following the COVID-19 pandemic and consequent lockdown.  Coupled with collective bargaining arrangements that have led to unsustainably high labour costs, this means that short-time, lay-offs and even retrenchments may need to be considered as means of survival. 

Legislation regulating these processes requires that specific procedures be adhered to.  These legal requirements can often prove daunting to employers, particularly those who have never implemented short-time, lay-offs or retrenchments before or who have not had to for some time.

The South African Engineers’ and Founders’ Association, in association with Gordon Angus and Associates is running a 2-hour webinar to guide employers through the legislative requirements of the Labour Relations Act and other applicable laws.

Please see below for details:

Short Time Lay off Retrenchement Workshop Flyer

27 April 2020

Please see below important information relating to the amendments to regulations.  It is our intention to update this document regularly as amendments and regulations are gazetted.  Our sincerest thanks to Fiona Leppan, Director in the Employment practice at Cliffe Dekker Hofmeyr Inc. and her team for their hard work in preparing the guidelines.

SAEFA GUIDELINE

 

17 April 2020

Government ministers yesterday presented amendments to the current lockdown restrictions. Please see below a summary of the amendments:

  • Restaurants and takeaway establishments are to remain closed, and supermarkets open to sell essential goods.
  • The new rules emphasise that the transport of alcohol is not allowed except where required for industries producing certain essential products such as hand sanitisers, disinfectants, soap etc.
  • Essential goods will now include the hardware, components and supplies needed by trades people for emergency repairs at homes or for any project related to the provision of water, electricity or other essential service.
  • Trades necessary for emergency automobile repairs has been declared essential and similarly the components required for automobile repairs to vehicles is now an essential good. 
  • In the same vein, trades necessary to render emergency repair work including locksmiths, glaziers, roof repairers, plumbers, electricians have been declared essential services.

22 April 2020

We have received helpful information regarding UIF TERS applications from our colleagues at the Plastic Converters Association of SA (PCASA). Acknowledgement and thanks to the PCASA for their input on the issues below.


UPDATE ON UIF TERS APPLICATIONS


We have reports from some members of payments received. These payments do not in all cases correlate with the benefit as set out in the MOA and seem to be partial payments. This has been brought to the attention of the UIF Commissioner and we await clarification. We do, however, advise that you use the UIF TERS Portal and lodge a complaint via the email link. It is clear that this only applies in cases where members have either advanced payments or paid employees partially for the time physically worked.

It is of utmost importance that you lodge your own complaint and keep record of same to be able to make follow-ups once the lockdown is lifted.

15 April 2020

REVISED NEW SETA GUIDELINES AND PROCEDURES

On 7 April, SAEFA distributed a document to members informing them of new guidelines and procedures applicable to the SETAs in the light of the COVID-19 pandemic. We have now been informed that these have been rescinded and replaced with the below:

SETA COVID-19 Finalised Guidelines and Procedures

The attention of members is drawn in particular to the following:

• The extension of the date for mandatory grant submissions from 30 April to 31 May remains in place.

• 43.4 of the earlier document (circulated on 7 April) provided that companies were required to continue to pay learner stipends at full value during this time. This provision has not been included in the new guidelines and Paragraph 6 – Skills Development Implementation - gives the new requirements relating to the payment of learners.

21 April 2020

15 April 2020

Please note the following rules that apply with regards to contributions to the Engineering Industries Pension Fund and/or Metal Industries Provident Funds:

  • If employees are being paid in full during the lockdown, full contributions to the industry funds must be made
  • If employees are receiving partial payment during the lockdown, then contributions on the reduced rate must be made.  This includes a situation where an employee is being paid out by the UIF and his/her employer is “topping up” his/her wages.  Here, contributions must be made on the reduced amount that the employer is paying to top up the employee’s wages.
  • If the period is being treated as unpaid and no contributions are therefore being made, the employee is still covered for the death benefits of the respective funds for a period of 2 months.

For further details, please contact This email address is being protected from spambots. You need JavaScript enabled to view it..