Tsepo was retrenched when the company he worked for went bankrupt.
Legally, employees are entitled to one week’s retrenchment pay for each year of service with the employer.
Tsepo had only been working for his employer for two years, so he was paid very little.
He wanted to claim from the Unemployment Insurance Fund (UIF), but his former boss told him he couldn’t do this because he was paid a retrenchment package.
AZIKHIPHI ! That’s not on!
When Tsepo was working he made contributions to the UIF, therefore he qualified for UIF benefits.
He asked SCORPION LEGAL PROTECTION for legal advice.
What does the law say?
The Unemployment Insurance Act 63 of 2001 gives financial security to workers when they become unemployed. The Act states that workers can claim from the UIF if:
- Employers are bankrupt, their contracts end, or they were fired.
- They do not already receive benefits from the Compensation Fund or an unemployment fund under the Labour Relations Act.
- They have not been suspended from claiming due to fraud.
Workers cannot claim if they:
- Worked less than 24 hours per month.
- Are students.
- Are public servants.
- Are foreign nationals working on a contract (and will return to their country after the contract ends).
- Receive a monthly pension.
- Only earn commission.
- Resign.
- Refuse training and advice.
- Do not report on time.
If the above applies to Tsepo, and he contributed to the UIF when he was employed, then there is no reason he cannot claim from the UIF, regardless of the fact that he received a retrenchment package.
How does it work?
If Tsepo qualifies, he should fill in forms at the Labour Centre and submit them along with any documents they request.
The money will be paid into his bank account, tax-free. He should claim within six months of losing his job, and can continue claiming until his benefits are used up or he gets a new job.
How can Scorpion help Tsepo?
SCORPION LEGAL PROTECTION can give Tsepo legal advice. If he has any problems getting his UIF payment, as a SCORPION member he can get legal help.
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