UIF COMPLIANCE IS A CHALLENGE ACROSS ALL SECTORS
50% of the employers inspected by the Department of Employment and Labour inspectors in the Western Cape were found to not be compliant during the 2021/2022 financial year.
Employer Audit Specialist at the Labour Department in the Western Cape Hlanganisa Dalasile reported that there were challenges surrounding compliance with the UIF across all sectors.
These challenges include employers not registering employees with the UIF as soon as the business commences.
Another challenge is employers not declaring employees on a monthly basis and not paying UIF contributions monthly, before the seventh day of each month as stated by law.
The third issue, Dalasile said, is employers who want to be compliant only when they require a Letter of Compliance to get tenders.
“When conducting our audits, we have picked up that many employers are deducting money from employees but don’t pay it over to the Fund, which is wrong. You can’t deduct money then keep it in your investment account to accumulate interest while the workers suffer.”Hlanganisa Dalasile
EMPLOYERS ARE URGED TO DO THE RIGHT THING WHEN IT COMES TO LABOUR LAW
Dalasile urged employers who “really care” about workers to abide by labour laws.
“We urge you to do the right thing. Deduct the money and pay it over to the Fund so that when the employees are losing their employment in the near future, they are not found wanting,” he said.
But compliance with the Fund is essential. It is for the benefit of both the employer and employees, said UIF Commissioner Teboho Maruping.
“It is possible that, as a collective, we can address these matters, but we need to come up with viable solutions. Let’s find solutions together and meet each other halfway as the Fund, employers and organised labour,” Maruping said.