The extended lockdown in South Africa has left many households in tough financial situations, facing salary cuts and some people unable to earn an income. Even though this difficulty, some South African's still recognized their responsibility towards domestic workers who help them in their homes outside of lockdown regulations and are continuing to pay them during these times.
But what happens in situations where employers cannot afford to keep a domestic worker during the financial strain? Fortunately, as part of the COVID Temporary Relief Scheme (TERS), domestic workers who are registered with and whose employers are contributing to the UIF may be entitled to a Covid-19 benefit.
Yes. If your domestic worker works for you for more than 24 hours in a month, you are legally obligated to register them with the Unemployment Insurance Fund. It is your responsibility as an employer to ensure that all employees are registered with the UIF.
It is also your responsibility as an employer to ensure that monthly contributions are made for each employee. Every month, the employer is responsible for contributing 1% of the domestic workers pay to the UIF. The domestic worker must, in turn, do the same and contribute a further 1% of their pay to the UIF.
These contributions allow for financial aid to be available to registered-domestic workers should they find themselves without a job.
Registering your domestic worker with the UIF must be done at the beginning of employment. Failing to do so is an illegal offence and may lead to a fine or imprisonment. To register your domestic worker for UIF, you can visit the Department of Labour website for more information. Registration can be done via email, fax, mail or by visiting a labour centre.
Fortunately, if you haven’t already registered your domestic worker with the UIF and disclosing the months they have already worked without being registered with the UIF, you can move into good standing with the law on this matter. You may be liable to penalties for contributions not made and these penalties are not deductible from your domestic worker's salary. Resolving this issue is highly recommended!
A domestic worker, like any other type of employee, deserves to have a formalized working contract and employment benefits. Being registered and contributing to the UIF is a legal requirement, but there are some other options to consider for your valued employee, like Domestic Worker Insurance.
Domestic Worker Insurance is a type of policy that can be opened by employers on the life of a domestic worker. This cover protects domestic workers and their families by providing a payout amount in the event of something happening to them.
Domestic Worker Insurance is affordable, easy to open and can be purchased through CompareGuru in just a few clicks online. CompareGuru is the trusted online platform for finding and buying insurance because you can compare all the best quotes and get help from our unbiased Gurus.