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COVID-19 Temporary Employee/Employer Relief Scheme (C19 TERS)

#Covid19 #Coronavirus #C19Ters #Reliefscheme


My blog today serves as additional information regarding the COVID19 Temporary Employee/Employer Relief Scheme (C19 TERS) application process.

General Notice 215 of 2020 was issued in the Government Gazette on 25 March 2020, which outlines the purpose, requirements and benefits stemming from the C19 TERS. Various service providers have attempted to populate the requirements and application information to give guidance to applicants. After careful scrutinization of various sources, I compiled a summary of only the necessary information applicable to the C19 TERS for my clients’ convenience - please find below:


Requirements for qualification:

  1. Only employers who have closed operations for 3 months or less may apply. Currently the lockdown period is set to end on 16 April 2020. However, an addition to the lockdown period up to 3 months will still fall within the ambit of the C19 TERS.

  2. Closure of business must be directly linked to COVID19.

  3. Employees may not be remunerated in any form for employers to qualify under C19 TERS. This means that employees working reduced hours or employees receiving remuneration in the form of paid leave will disqualify the employer from the C19 TERS.

  4. Employers must be under financial distress and not being able to pay salaries to qualify.

  5. Employers must be registered for UIF directly with the Department of Labour. Note that submission of monthly EMP201’s does not in itself mean that employers are registered with the Department of Labour.

  6. Employers who wish to apply for the C19 TERS must open a separate bank account earmarked for receipt and payment of the benefit alone.

Employers who wish to apply for the C19 TERS must open a separate bank account earmarked for receipt and payment of the benefit alone.



Key documents required for the application:


  1. A Letter of Authority on an official company letterhead granting permission to an individual specified to lodge a claim on behalf of the company. If you wish to make use of our services, we will draft the letter on your behalf and kindly ask you to print such on your company letterhead.

  2. A Memorandum of Association (MOA) which comprise an agreement between UIF, the applicable bargaining council and the employer (attached). From the source we consulted the MOA is required if the employer has more than 10 employees. However, we strongly advise that the MOA is included in the application process for all employers irrespective the number of employees.

  3. A prescribed template that will require critical information from the employer (Employers Account Information & National Disaster Payment-Excel Template attached).

  4. Evidence/payroll as proof of salaries for the last three months.

  5. Confirmation of bank account details in the form of certified bank statements. As a new bank account will be used, a certified bank statement which only reflects the initial deposit will suffice.

  6. All documents submitted will be subject to verification.

  7. It is imperative that information compiled and submitted are accurate and complete. It is virtually impossible to amend the application after submission

It is imperative that information compiled and submitted are accurate and complete. It is virtually impossible to amend the application after submission


Submission Process

Each of the sources we consulted had a different email address to which the above-mentioned documents must be submitted:



We advise clients to use all three when the submission documentation is sent.

Calculation and payment of benefit:

  1. Salary benefits will be capped to a salary maximum of R 17,712 per month per employee, and an employee will be paid in terms of an income replacement rate sliding scale as provided in the Unemployment Insurance Act. This income replacement rate sliding scale range from 38% to 60% of monthly salary per employee.

  2. Effectively, this means that the maximum amount that will be paid to the employer is R 6,730, and the minimum is R 3,500 per employee.

  3. Payment will only be effected after the MOA is signed by all parties. It is estimated that payments should occur between 10 and 30 working days after submission of all the necessary documentation.

  4. Payments are apportioned for the lockdown period.

  5. Employers are obliged to pay employees within five days of receipt.

  6. Employers must notify UIF of any employee exits after the application has been submitted.

  7. Employers are obliged to keep all records pertaining to the benefit for 5 years for audit purposes.

  8. We understand that R 30 billion has been set aside to fund the C19-TERS. If you want to apply, it is therefore advisable to do so as soon as possible.


I hope you find the summary above of use.

You are welcome to contact us at any time if you have any questions.

Regards Wim

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