The Unemployment Insurance Act Flashcards
What is the purpose?
The Unemployment Insurance Act (no. 63 of 2001) makes provision for the Unemployment Insurance Fund (UIF), which gives short-term relief to employees when they become unemployed or unable to work because of maternity, adoption or parental and paternal leave or illness. It is important to note that this act also makes provision for relief to the dependents of a deceased contributor to the UIF.
The act makes provision for the insurance of employees who are contributors to the Unemployment Insurance Fund against the risk of loss of earnings arising out of unemployment due to:
The termination of their employment – more than 14 days
Illness – more than 14 days
Maternity
Payments to female contributors who adopt children
It also makes provision for payments to the dependents of deceased contributors
What is the scope of the Act?
Most employees are covered by the act (including domestic and seasonal workers), except for:
-Employees employed for less than 24 hours a month with a particular employer, and their employers
-Employees who receive remuneration under a learnership agreement registered in terms of the SDA 97 of 1998, and their employers
-Employers and employees in the national and provincial spheres of government
-Persons who enter the Republic for the purpose of carrying out a contract of service, apprenticeship or learnership within the Republic, if upon the termination thereof, the employer is required by law or by the contract of service, apprenticeship or learnership, as the case may be, or by any other agreement or undertaking, to repatriate that person, or that person is so required to leave the Republic, and his/her employers.
The following persons may be contributors to the fund, but are not entitled to benefits:
People receiving a pension/disability grant from the state
People already benefiting in terms of the Compensation for Occupational Diseases Act
Contributors who have refused to accept appropriate available work
People who have voluntarily resigned from their work – except in the case of a constructive dismissal, which has been referred to the CCMA
