Ters Moa Agreement


In accordance with Article 4, the revised MOA begins on the date of confirmation of the UIF`s acceptance of the application for COVID-19 TERs and remains in effect for at least three months, unless it is extended by mutual agreement. This may be relevant if the blockage is extended or if a business continues to close after closing. Nevertheless, the agreement will enter into force in accordance with paragraphs 1.3 and 1.4.1 of Form 4A (employer obligation) if it receives a letter of authorization “A3” and receives acceptance of such authorization by UIF. As a result, employers must wait for confirmation by UIF `A3` letter of authorization for the application to be approved and informed in writing of the amounts to be paid to workers as a result of this authorization. On April 9, 2020, in light of changes to the Coronavirus Guidelines (COVID-19), the Unemployment Insurance Fund (UIF) issued four new agreements (MOA) that will be used when employers apply for the covid-19 temporary relief scheme (“TERS”). It also adopted a revised application procedure. In order to claim TERS benefits on behalf of their employees, employers must send an email to covid19ters@labour.gov.za. Employers then receive an automatic email response from the UIF with instructions on how to apply for TERS benefits. Unfortunately, the instructions for the automatic response are relatively vague, particularly with regard to the mandatory standard document in which the employer must record all the necessary information to employees. Staff information must be recorded in a .csv format, although the UIF model is a .txt format.

The personnel detail model is also attached to the policy document to assist employers who wish to attach a CSV file instead of recording staff details on the online platform. Many of these employers will not be able to continue to pay their employees during this period. The right MOA must be chosen in terms of the role in the process. We draw attention below to the main clauses of the revised employer – UIF MOA, Article 21 of the revised MOA provides that the UIF, when verifying the supporting documents and calculating benefits, is required to pay the benefits within 10 working days of the presentation of the necessary documents and information on the employer`s business account: in accordance with Article 12 of the revised MOA, the employer must submit proof of payment to the UIF within five days of receiving the funds from the UIF.