The TERS-funding process does not allow employers with 10 or less employees to collect and pay over these UIF benefits to their employees. The UIF will pay the benefits directly to the employees and not to the employer.
Where employers make advance payments to employees to assist them during the period where the employees are waiting to receive payment from the UIF recovering the payments made to tide employees over during the waiting period may prove difficult.
Prior to advancing payment to assist an employee an employer should conclude an Acknowledgement of Debt to enable the employer to deduct monies from future salary, subject to the limitations on deductions as contained in the Basic Conditions of Employment Act or any applicable Bargaining Council agreement.
Additionally, those employers with 10 or more employees who have advanced payments to employees should obtain consent to deduct such payment from monies received from the UIF.
Please contact gdakin@blclaw.co.za if you require an Acknowledgement of Debt.
Author: Guy Dakin
