UIF REGISTRATION and UIF FORMS - Rights and Obligations

It is the employer’s responsibility to register their domestic worker with the Unemployment Insurance Fund.
You can register a Domestic Worker for UIF in one of the following ways:

  • By submitting the completed UIF registration forms
  • By registering over the phone
  • By registering online.

ui19 form

UIF Registration Forms

To register you will need to have your ID number and your domestic worker’s ID number and other details. Form UI 8 D needs to be completed with the employer’s details and form UI19 D needs to be completed with the domestic worker’s details.
You can submit the completed forms by:

  • Taking them to your nearest Labour Centre.
  • Faxing them to 012 337 1636.
  • Emailing them to domestics@uif.gov.za.

The UI19 form along with the UI 8 D form  can also be faxed to you. Dial 086 712 2000 and follow the instructions and the forms will be sent to you. If you get UI19 form this way, you need to fax the completed forms back to 086 713 3000.
Registering telephonically
You can register by calling 012 337 1680 during office hours. You will need to have the employer and employee’s ID numbers.

Online UIF Registration

You can also register for UIF online. You will need to fill out the online UIF registration form, then you will be given a login name and password. Your password and account will be activated within 48 hours. You can then submit your declarations online.

1. What is the Unemployment Insurance Fund?

The Unemployment Insurance Fund has been established to provide short-term relief to workers, subject to certain conditions, when they become unemployed, or are unable to work because of illness, maternity or adoption leave and also to provide relief to the dependants of deceased contributors.

2. How is the money obtained to operate the Fund and pay benefits?

The Fund is being financed through the monthly contributors of employers and workers. Government is the underwriter of the Fund and is expected to provide financial assistance to meet shortfalls experienced during times of high unemployment.

3. Should all workers contribute to the Unemployment Insurance Fund?

3.1 As from 01 April 2002 all workers who work for 24 hours or more per month must contribute to the fund.

3.2 As from 01 April 2003, the Unemployment Insurance Act requires domestic workers and their employers to contribute to the Fund.

3.3 The following categories of workers are excluded from contributing to the Unemployment Insurance Fund.

• Workers who work less than 24 hours per month;
• Public Servants as defined under section 1(1) of the Public Service Act, 1994;
• A worker who enters into an employment contract with an employer for sole purpose of entering a learnership agreement as contemplated in section n 18(2) of the Skills Development Act of 1998;
• People who enter the Republic of South Africa for the purpose of carrying out a Contract of Service, Apprenticeship or Learnership, or by any other agreement or undertaking, to repatriate that person, or that person is so required to leave the Republic;
• Workers who are remunerated solely on commission basis.

4. Do you have to contribute to the Fund if you earn a high salary?

Yes, all workers, except those mentioned under point 3.3 must contribute to the Fund. The UIF Fund, on an annual basis sets a maximum earnings level for contributors. All those workers who earn above the maximum level will only contribute up the maximum and when they become unemployed will then receive benefits based on a sliding scale. This means that every worker from the lowest level to the company director must contribute to the Fund.

5. Must all employers contribute to the UIF Fund?

5.1 All employers who employ any person an in return provide them with remuneration in either cash or kind must register with the Fund as soon as they commence activities as an employer. It is the responsibility of the employer to register the business and make the necessary deductions from the remuneration of the workers. If the employer fails to do this there are severe penalties that will be applied in terms of the Unemployment Insurance Contributions Act, 2002. If any employer refuses to register with the Fund and does not want to make the deductions, workers are advised to contact the nearest office of the Department of Labour.

5.2 Employers are urged to comply with the provisions of the Act, as the Fund provides relief to their ex-workers who are left with limited means or no means of support due to their services being terminated.

6. What is regarded as remuneration?

All monies received from the employer, whether in cash or in kind. This includes overtime and bonuses, and contributions must be based on this. In addition, all allowances that are received are regarded as remuneration. Examples of allowances are traveling allowances, entertainment allowances as well as food and accommodation allowances. More information on remuneration can be found in the EMP10 guidelines for employers obtainable from the South African Revenue Service (SARS).

7. How much should be contributed to the Fund?

A worker should contribute 1% of his/ her monthly remuneration. In addition to the 1% that is paid by the worker, the employer also contributes 1% his/her employment. The total contribution that is paid is therefore 2% for instance, if a worker earns R1000.00 per month, the employer must deduct 1% of the R1000.00 which is R10.00. In addition the employer must pay R10 in respect of this worker who is in his/her employment. The total of R20 must therefore be forwarded to the Unemployment Insurance Fund or SARS whichever is applicable. Contributions must be deducted for the current month only and the employer is not allowed to deduct more than one month’s contributions.

8. When and how does the employer pay this contribution to the Fund?

8.1 The employer pays these contributions to the Fund before the 7th day of every month. Where the 7th day is not a “business day”, payments must be made on or before the last “business day” prior to the 7th day. “Business day” means any day which is not a Saturday, Sunday or Public Holiday. For the purposes of paying contributions, those employers who are registered for tax purposes and/or the Skills Development Levy (SDL), must pay their contributions to SARS. The remaining employers must pay their contributions directly to the Fund. There are various methods of forwarding these contributions to the Fund. It can be by debit order (in which case the employer can arrange with his/ her bank), direct bank deposit, or electronically through Internet Banking.

8.2 Employers may pay the total annual contributions provided that such amount is paid upfront.

8.3 The total contributions due must be made within the boundaries of a financial year or liability period and within seven days after the beginning of that financial year or liability period. “Financial year” or Liability period” means the period commencing on the first day of March in any year, or from the first day of liability providing such a date falls within a current financial, and ending on the last day of February in the following year. The employer may not deduct the worker’s share of the total contributions due “Up-front”. Deductions must still coincide with intervals of payment of remuneration. If it subsequently becomes known to the employer that any payment made was not due or payable, or was in excess of the amount due or payable, the employer must refund to the worker such amount or excess amount as has been deducted and overpaid by the employer, despite the amount not having been refunded to the employer by the Unemployment Insurance Fund or SARS. Such refunds must then be claimed from the Unemployment Insurance Fund or SARS on an annual basis and after the end of the relevant financial year applicable for annual payments only.

8.4 In the event of salary increases, this must be reconciled as soon as the salary increase takes effect and any salary increases takes effect and any difference between the amount due and already paid, must be corrected.

8.5 If employers receive a SARS return form (EMP201), it means that they are required to submit their Unemployment Insurance Fund contribution to SARS for periods from April 2002 onwards> The Fund should in these cases be advised of the 10-digit Pay As You Earn (PAYE) reference number in respect of their business.

8.6 Employers must also ensure that the fund contributions are indicated on the EMP201 and that payments are forwarded to SARS. The Fund will not accept responsibility, or engage in any communication with SARS or employers in the event of penalties and/or interest being raised if payments are submitted to the Fund instead of to SARS.

8.7 To avoid unnecessary penalties and interest, employers must ensure that payments reach the Fund or SARS time.

9. What happens if the employer fails to pay contribution?

9.1 It is the responsibility an employer to make necessary deductions from the remuneration of the worker.

9.2 Contributions must be paid either monthly or annually.

9.3 Late or non-payment of contributions attracts penalties and interest.

9.4 Non –compliance which may be punishable by a fine, imprisonment or both.

10. How does the Fund know from whom the contributions are being
received?

10.1 The Fund has established an employer/ worker database in which all the employment details of the workers are stored. It is the responsible of the employer to send the details of all its workers to the Fund to update the database on a monthly basis or when there is a change in the details of the worker. The details of the workers are stored in the database and when the person becomes unemployed, the Fund can process the application without delay. It is therefore very important to ensure that employers send details of their workers to the Funs, in order to update the database.

10.2 The Fund has various methods available for employers to send their worker’s information to the Fund. This includes sending the information manually (UI19 form) to the Fund for employers who do not have electronic payroll systems. The UI19 form is used by employers to submit particulars of their workers to the Fund’s database. This form is available from the website as well as Provincial offices and labour Centres of the Department Of Labour. Commercial employers that have electronic payroll systems can send their information to the database electronically in the specified format to declarations@uif.gov.za.
For details regarding the specified format please consult the specification document on the website under the menu for Employers info – Declaration Specification. Employers of domestic workers should complete the UI19 form for domestic workers to be e-mailed to webmaster@uif.gov.za . Declarations can also be submitted via ufiling. This facility secures online services for declarations and payment or contributions visit www.ufiling.gov.za .

11. Should all employers submit monthly declarations?

Yes employers should, including those that are required to pay their contributions via SARS. All employers must declare any changes in the particulars of their workers as soon as such changes occur. If changes occur on a monthly basis, the n declarations must be submitted monthly.

12. Should employers who pay annually submit declarations?

Yes, once a year or in the event of changes in the particulars of workers.

13. How will the Fund know how much to pay you when you become
unemployed?

13.1 The rate at which the benefits are payable is calculated according to a sliding scale of between 38-60%.

13.2 Credits are given to the workers as they work and contribute to the Fund. The credits are accrued as follows: For every six days that you work as a contributor, you receive on day’s credit subject to a maximum of 238 days. In order to qualify for the full 238 days credits, you must have worked as a contributor for at least four years.

13.3 The worker is regarded as having contributed to the Fund from the first day of employment to the day that his/ her services are terminated. A notice period worked before termination of service is also regarded as a period in employment. However, it should be noted that in the case of domestic workers, they are only regarded as contributors as from 1 April 2003.

13.4 The Unemployment Insurance Amendment Act, 2003 is also addressing the situation of more than one employer for domestic workers and brings in a concept of partial unemployment for those workers with more than one employer.

13.5 The Act provides benefits to become payable when a worker’s income falls below a given level of what he/she was previously earning when employed by various households e.g. if a domestic worker works for three households and the total income is R600.00 and he/ she looses the income of one household of R200.00she/ he now only earns R400.00 having lost R200.00 as income.

13.6 Only employment lost in the last six months from the date preceding the date of application will be considered when determining if the domestic worker is wholly unemployed or not. Again for domestic workers the date of the death of an employer will be considered as the date of unemployment. The amount of benefits paid shall be determined by the last declaration of the employer and in the absence of the declaration the claims officer shall determine the benefits based on the available documentary proof submitted.

13.7 All Unemployment Insurance Fund claimants must have their own bank account. Claimants are not allowed to use bank accounts that belong to family and friends. Payment of Unemployment Insurance Fund benefits will only be made into the claimant’s own bank account. The Fund verifies the beneficiary’s bank details with the account holder and will not pay benefits into an account that does not belong to the applicant.

14. What happens if remuneration fluctuates / differs?

If the remuneration fluctuates/ differs on a monthly or weekly basis, then the average remuneration over the last six months must be used to calculate benefits payable.

15. What types of benefits are provided by the Fund?

The Fund provides for five types of benefits:
• Unemployment benefits (Section 17)
• Illness benefits (Section 22)
• Maternity benefits (Section 25)
• Adoption benefits ( Section 28)
• Dependants (Death) benefits(Section 31)

16. Unemployment Benefits

• Application for benefits must be made within six months of termination service;
• Benefits are paid from the date of application;
• Benefits are only paid if unemployment lasts for more than 14 days;
• Benefits are only payable if the employer terminates the services of the contributor. If the worker terminates his/ her employment absconds, no benefits are payable, unless the termination can be deemed to be constructive dismissal;
• Benefits are paid if the employer of a domestic worker dies;
• Benefits are paid if the company becomes insolvent;
• The contributor must be registered at his/ her nearest Labour centre as a work seeker in terms of the Skills Development Act, 1998, to qualify for unemployment benefits. The contributor must be capable of and available for work;
• The contributor must report at times and at places that the Claims officer determines for the purpose of signing the unemployment register;
• The contributor must undergo training and vocational counseling if directed by the Claims officer. If the contributor refuses without just cause to undergo training, the contributor will not be entitled to benefits;
• Subject to credits, benefits can be paid to a maximum of 238 days in any period of four years.

17. Illness Benefits

• Application for benefits must be made within six months of the date that the worker ceases to work because of illness.
• Benefits are paid as from the date on which the worker ceases to work, because of illness
• A medical certificate should be submitted to support that the worker stopped working because of illness
• Benefits that are payable is the difference between what the employer pays and the rate that is prescribed in the benefit scheduled. When taking into account the amount paid by the employer and the amount prescribed in the benefit scheduled, the total amount received should not exceed 100% of the normal remuneration that the person would have received if she/ he remained in employment.
• Benefits are only payable in respect of periods of illness lasting longer than 14 days.
• Subject to credits, benefits can be paid to a maximum of 238 days in any period of four years.

18. Maternity Benefits

• An Application for maternity benefits must be lodged within six months after the birth of the child.
• Benefits are payable to a female contributor during pregnancy, confinement or the period there after.
• Benefits that are payable is the difference between what the employer pays and the rate that is prescribed in the benefit schedule of the Unemployment Insurance Act. When taking into account the amount paid by the employer and the amount prescribed in the benefit scheduled, the total amount received should not exceed 100% of the normal remuneration that the person would have received if she remained in employment.
• Subject to credits, benefits can be paid to a maximum of 212 days. An application for maternity benefits does not affect the contributor’s right to unemployment benefits. This means that the worker may still qualify to receive unemployment benefits should the worker become unemployed.
• If there is a miscarriage or a stillborn child, the benefits are paid for a maximum of six weeks after the miscarriage/ still born.

19. Adoption Benefits

• The application for benefits must be made within six months after the date of order for adoption has been issued by a competent court.
• The adopted child must be younger than two years.
• Only one contributor of the adopting parents can apply for benefits
• The child must be adopted in terms of the Child Care Act, 1983.
• The period not working must be spent caring for the child.
• Benefits are payable from the date on which the Court grants an order of adoption.
• Benefits that are payable is the difference between what the employer pays and the rate that is prescribed in the benefit scheduled. Once again, when taking into account the amount paid by the employer and the amount prescribed in the benefit scheduled, the total amount received should not exceed 100% of the normal remuneration that the person has received if she/he remained in employment.
• Subject to credits, benefits can be paid to a maximum of 238 days in any period of four years.

20. Dependants (Death) Benefits

• The surviving spouse / life partner must apply for benefits within six months of the date of the death of the contributor. A dependant child can apply for benefits if the surviving spouse/ life partner has not applied within six months of the contributor’s death.
• Benefits are payable to the surviving spouse/life partner of a deceased contributor, when an application is made.
• Application must be made on a prescribed form at the nearest Labour centre.
• Any dependant child under 25 years of age is entitled to benefits if there is no surviving spouse.
• Subject to credits, benefits can be paid to a maximum of 238 days in any period of four years.
• The benefits payable are equal to the unemployment benefits that would have been paid, if the contributor was still alive.

21. When is a contributor not entitled to receive benefits?

• If the contributor is receiving payment from the Compensation Fund for illness or injuries that caused the temporary or permanent unemployment of the contributor.
• If the contributor is receiving benefits from any other unemployment fund or scheme established in terms of the Labour Relations Act.
• If the contributor fails to comply with the provisions of the Unemployment Insurance Act.
• If the contributor is suspended from receiving benefits because she/he has been working and collecting benefits or has committed fraud related to the UIF.
• If the contributor has resigned from work.

22. Dispute resolution

22.1 The Unemployment Insurance Fund has established Regional Appeals
Committees to deal with disputes in all the provinces. An aggrieved beneficiary can
lodge an appeal by submitting a completed prescribed form (UI-19) by hand or
registered post against a decision of the commissioner or a Claims officer in terms
of section37(1) to the Regional Appeals Committee at the respective Labour centres
of the Department Labour .

22.2 A person who is dissatisfied with the decision of the Regional Appeals
Committee may refer the matter to the National Appeals Committee for final
Decision in terms of section 37(2) by physically submitting a completed UI-13 form
to 94 Church Street, Pretoria, 0001, or registered post to the Unemployment
Insurance Fund, Pretoria, 0052 or by telefax to (012) 337-1893.

23. What is the responsibility of an employer after the termination of the
service of a worker?

• The UI19 form must be completed and returned to the Fund or any of the Department of Labour’s offices.
• Information of the relevant worker or workers will be updated to show the current status.
• Failure to submit the UI-19 may cause delays with the processing of claims for unemployment or other benefits.
• Advise ex-workers to immediately approach the nearest office of the Department of Labour.

24. How does and employer de-register with the Fund?

Employers can contact the Fund or any of the Department of Labour’s offices and
request that the UIF registration be cancelled. The UIF reference number and the date,
on which liability ceased, must at all times be quoted. An updated UI-19 must be
submitted to the Fund on closure of business.

25. How does an employer register a new business with the Fund?

• UI-8 (UIF registration of employer) and UI19 (UIF registration of workers) can be downloaded from the website, or can also be obtained from the Fund or at any local office of the Department of Labour.
• Completed forms need not be forwarded to the Unemployment Insurance Fund for registration but can be handed in at any local office of the Department of Labour for finalisation, or
• Employers can also make use of the special fax facility by dialling 086 712 2000
• Registration can be affected telephonically at (012) 337 1680.
• Completed forms can be posted to the UIF, Pretoria, 0052. Pleas note that the postage is payable on all postal articles mailed to the Fund.

uif registration

26. How long will the UIF registration process take?

All UIF registrations will be finalised within 48 hours of receipt of application forms.

27. How will an employer know if his/ her worker is registered with the
Fund?

If a completed UI19 form has been submitted in respect of workers in the employer’s
employment, confirmation of registration will be forwarded.

28. Is a separate reference number allocated to workers?

A reference number is allocated to an employer and all the workers working for such
an employer are “attached” to the employer’s reference number. In the event of

queries, it is essential that the employer’s reference number as well as the worker’s ID

numbers be quoted.
29. If a business is already registered with the Fund can the same
reference number be used to register a domestic worker?

No, the domestic worker should be registered separately.

30. The following points should also be noted:

  • The Unemployment Insurance Contributions Act, 2002 (Act No. 4 of 2002) defines a “ domestic worker” as a worker who performs domestic work in the home of his or her employer and includes a gardener, person employed in the household as a driver of a motor vehicle an a person who takes care on any person in that home.
  • In terms of the aforementioned Act, domestic workers and their employers became liable to contribute to the Unemployment Insurance Fund from 1 April 2003. Registration cannot be back dated.
  • Where one household employs more than one domestic worker, only one domestic employer registration is necessary.
  • If a domestic worker is employed by more than one employer each employer must register separately and ensure that the domestic worker is registered. The aforementioned also applies to agents or bookkeepers administering the affairs of more than one domestic employer.
  • Separate registrations are also required in cases where a commercial employer is also a domestic employer. Registration and payment of contributions of domestic workers may not be included in that of a commercial enterprise.
  • People employed by businesses that are run from private households are not regarded as domestic workers.
  • People employed by corporate entities as gardeners or cleaners in housing complexes are also not regarded as being employed in private households.
  • Companies, Close Corporations, Partnerships and any other Corporation Bodies are not domestic employers.
  • It is deemed fraud when beneficiaries who are receiving benefits return to work, but fail to inform the Fund about their new status and continue to draw benefits.

UIF Hotline: 0800 601 148
Email: fraud@uif.gov.za

For further information on any labour related matters including uif registration, you can contact
Bernard Reisner:

W.Tel no.: 021 423 3959
Fax: 021 423 2105
Cell: 082 433 8714
E-mail: bernard@capelabour.co.za
Website: www.capelabour.co.za

About

Bernard Reisner combines expertise, knowledge of Labour Law principles and issues, with a superb ability to communicate and meet his clients’ unique needs

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