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Lockdown day 430 March 2020
Statistical update
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Scenario-planning model
Industry type GDP impact Age profile Gender profile
Remote work Investor sentiment
Funding options
Industry type
Org response
Skills sets other
Areas to monitor
❑ BBBEE❑ EE❑ Skills development❑ NPAT❑ Leviable payroll❑ Headcount❑ Total measurable
procurement spend❑ People % of revenue❑ Skills needs❑ Pension and
provident fund contributions
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https://medium.com/@tomaspueyo/coronavirus-the-hammer-and-the-dance-be9337092b56
5https://www.nicd.ac.za/
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Economic impact Labour market impact
❑ South Africa, est. -10% GDP
❑ 0.7% employment decrease for 1% GDP decrease
❑ Potential decrease in employment around 1.050m jobs
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COVID-19 Sector Impact
❑ Hospitality and tourism❑ Transport (airlines)❑ Oil and gas❑ Automotive❑ Consumer products❑ Electonics
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Other consequences
Employment practices and labour laws to be leveraged for flexibility
High flexibility
Low flexibility
Levels of employee engagement required
Consultation or as part of a procedure such as incapacity or operational requirements
Individual agreement – addendum to employment contract
Collective agreement
Employer discretion
Fast twitchRegulated flexibility
Slow twitchOccupationally
directed
Moratorium on recruitment
Freeze training initiatives, unless online
Suspend appropriate labour relations matters and reserve rights (e.g. non-dismissible offences or incapacity matters)
Appropriate EAP measures (enhanced)Nerve center, monitoring
and evaluation Communication strategy and platform
Averaging of hours of work (s12 BCEA)
FTC pay for hours worked only (for flex or absenteeism requirements s9A BCEA) or casual employees (-24 hours pm)
Take annual leave (s12 BCEA)
Staggered lunch (s14 BCEA)
Overtime saving (s10 BCEA)
Compressed working week (s11)
Outsourcing (s197 LRA)
Secondments and transfers
Employment practices
Statutory options
Restructuring or lay-off (s189 LRA)
Sick leave extension by paying 25% less and extending sick leave by 25%
Potential Policy, Practice And Labour Relations Responses To Corona Virus Impact To Manage Risk And Drive Sustainability
Travel restrictionsUnpaid
leave
Family responsibility leave (BCEA)
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New developments
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COVID19TERS❑ Employer claims for full or partial closure❑ Employer claims even if partial payment or top-up❑ Employer payment and do away with separate bank account❑ Confusion TERS (CCMA) v TERS (UIF)?
Atten-tion
Covid-19 Temporary Employer Relief Scheme
If you require assistance in managing/administering the Covid-19 Temporary Relief Scheme application process via UIF, Global Business Solutions has a dedicated team ready to help you navigate this process, including a detailed Application Toolkit available. For more information please contact:
Directive was created to make provision for the:
• Payment of benefits to the Contributors who have lost income due to Covid-19 pandemic;
• Minimise economic impact of loss of employment because of the Covid-19 pandemic;
• Avoid contact and contain the spread of Covid-19 during the process of application for benefit;
• Establish the Temporary Relief Scheme and set out the application process for benefits of the Covid-19 pandemic and to alleviate economic impact of Covid-19
• Online applications for benefits in order to avoid contact during the national disaster period.
IMPORTANT TO NOTE:
❑ Covid-19 TERS replaces the National Disaster Benefitspreviously published by UIF
❑ Simplifies the process as it’s Employer-led & allows for amass application online
❑ Normal TERS programme offered by the CCMA continues,but is not applicable to the period of #lockdown
❑ Confusion over past few days as there have been severalchanges to the instructions and documents requested.Process is under negotiation with NEDLAC and anticipatedto be finalized imminently.
COVID-19 LOCKDOWN: ACCESSING COVID-19 TEMPORARY RELIEF SCHEME
In order to be eligible to access the Covid-19 Temporary Relief Scheme, the following criteria apply:
The employer’s operations must be closed, for a
period of up to maximum of three (3) months and
suffer financial distress as a direct result of the
Covid-19 pandemic.
Closure of Operations
❑ Company must be registered with UIF;
❑ Closure must be directly linked to Covid-19;
❑ Agree to MOA terms with UIF
❑ Comply with application procedure for financial
relief scheme
Employer Conditions
Qualifying Criteria
▪ Benefits are de-linked from UIF credits system, therefore the provision that four days of work equates to one day’s credit (for up to 365 days) does not apply
▪ Does not apply to employees who will be (fully?) paid by Employer during period.▪ Benefits will only pay for the cost of salary (calculated using UI Benefits Sliding Scale) for the employees during
the temporary closure of the business operations.▪ Maximum benefit will be calculated on a salary cap of R17 712 per month, but lowest wage earners protected
with at least minimum payment of R3500 per month.▪ Does not apply to any employees who are employed after the #lockdown period.
COVID-19 LOCKDOWN: ACCESSING COVID-19 TEMPORARY RELIEF SCHEME
Application Process
UIF will download completed spreadsheet to process claim:
• Calculation of credit• Income Replacement Rate• Capped Salary (R17 712)• National Minimum Wage
(no less when calculated)
MOA (between Employer & UIF)
will be concluded by the Fund
Payment will be paid as per
the agreed method.
Payment in intervals of 30 days (duration)
Employers shall report their closure to [email protected] and will receive an automatic reply outlining
the application process (as illustrated below)
Docs Required
MOA with UIF will only contain Employer signatories when submitted. UIF will be sign during claim process to avoid delays.
Complete template with following info:
• Employer details• Employee details• Employment History• Salary Info over last 3/6 months• Minimum Wage (sector specific)• Banking Details
Permission (from CEO) granted to individual to lodge claims on behalf of Company
NOTE: We are awaiting clarity on the specifics of the final MOA and supporting documentation requirements.
Letter of Authority
MOA between Employer & UIF
Prescribed template containing critical
Employer Employee information
Email Application
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DTI want your feedback on challenges!
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DEL proclamation on leave utilization – Chief Director, LR
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Another opinion – Michael Bagraim (Deputy Shadow Minister DEL)
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But, some challenges
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Current testing protocols
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Ease of reference
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Employee retirement funds …
Employers experiencing financial headwinds and who are not in a position to pay their full contributions to employee retirement finds can access a temporary payment reprieve on condition they immediately engage with and reach agreement with retirement funds and submit agreements to the Financial Sector Conduct Authority (FSCA). This will prevent criminal (Pension Finds Act) and civil prosecution. In addition, any rule amendments associated with temporary absence and lay-off need to be submitted as well.
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SARS, VAT and essential goods
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Textile Industry
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The Dti has launched a Debt Relief Fund for SMEs affected by #Covid19 Call 0860 663 7867 Register at www.smmesa.org.za to access NEF, SEFA, IDC facilities.
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SAPS clamping down
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SAPS clamping down
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General
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Just updated…
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Disaster Management Act Amendment of Regulations
The rest of the provisions remain the same
No right of refusal…
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❑ No person who is a confirmed as having COVID-19 or who is suspected of having contracted the virus or who has been in contact with a person who is a carrier may refuse consent to
- medical examination- admission to a health establishment or a
quarantine or isolation site- submission to mandatory treatment, isolation etc
❑ Non-compliance means isolation or quarantine for 48 hours pending a warrant being issued for enforcement
Definitions
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❑ Essential goods: Paragraph A of Annexure B❑ Essential services: s213 LRA, s71(8) of the LRA and
the list in para B of Annexure B❑ Institution: public or private institution that is
engaged in the supply or distribution of a ES or EG❑ Head of an Institution: is the accounting officer or
CEO or equivalent❑ Lockdown: restriction of movement during the
period of lockdown❑ Movement: entering or leaving a place of
residence or a temporary place of residence
Definitions
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❑ Essential goods: Paragraph A of Annexure B❑ Essential services: s213 LRA, s71(8) of the LRA and
the list in para B of Annexure B❑ Institution: public or private institution that is
engaged in the supply or distribution of a ES or EG❑ Head of an Institution: is the accounting officer or
CEO or equivalent❑ Lockdown: restriction of movement during the
period of lockdown❑ Movement: entering or leaving a place of
residence or a temporary place of residence
S213 LRA
S71(8) LRA
Definitions
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Restriction on movement of persons and goods
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Every person is confined to place of residence unless strictly for (fine or imprisonment of up to 6 months or both):❑ Purpose of performing an essential service (ES)❑ Obtaining an essential good (EG) or ES❑ Collecting a social grant❑ Seeking emergency, life-saving or chronic medical attention
Every gathering is prohibited except for a funeral of less than 50 people
Movement between provinces, metropolitan and district areas is prohibited
Only operational businesses are those who are involved in the manufacturing, supply or provision of an essential good or service
Retail shops and shopping malls must be closed (except where EG’s are sold - no other goods may be sold and a 1sqm distance must be maintained etc)
The head of an institution must determine essential services to be performed by the institution as well as determine the essential staff who will perform those services (can be delegated)
Statistics – in South Africa
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❑ Head of the institution must designate persons (not employees only) in writing who are performing ES’s
❑ All places and premises in Annexure D must be closed to public except where security and maintenance services are required
❑ All persons performing ES or seeking medical attention may be subjected to screening for COVID-19 by and enforcement officer
❑ All borders are closed except for transportation of fuel and essential goods
Statistics – in South Africa
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❑ Head of the institution must designate persons (not employees only) in writing who are performing ES’s
❑ All places and premises in Annexure D must be closed to public except where security and maintenance services are required
❑ All persons performing ES or seeking medical attention may be subjected to screening for COVID-19 by and enforcement officer
❑ All borders are closed except for transportation of fuel and essential goods
Prohibition of public transport
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❑ Prohibition on all commuter transport services, except bus services, taxi services, e-hailing services and private motor vehicles for purposes of rendering essential services, obtaining essential goods, seeking medical attention, funeral services and to receive payment of grants
❑ Such vehicle may carry no more than 50% of the licensed capacity and must adhere to hygienic conditions associated with COVID-19
❑ Where a person rendering ES’s is unable to get to work within these confines, the employer must make the necessary transport arrangements and the bullet point above still applies in such instances
Prohibition of public transport, and now??
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We will keep you updated on developments.
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interpret
respond
assess
sustainable
Transition acceleration
East London Durban Port Elizabeth Johannesburg Cape Town
T 043 721 1030 041 364 0472 041 364 0472 011 483 3722 021 418 1617
F 043 721 1027 086 414 4926 086 414 4925 011 483 1650 021 418 1619
infoct @globalbusiness.co.za
www.globalbusiness.co.za53
Thank you for your
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