Fraudulent Employers Get Time Up After UIF Improves Systems
Fraudulent Employers Get Time Up After UIF Improves Systems. The Unemployment Insurance Fund (UIF) has enhanced its systems to crack down on fraudulent activities by employers, ensuring better protection for employees. These improvements were highlighted during the Portfolio Committee on Employment and Labour’s induction workshop this week. The workshop provided committee members with valuable insights into their oversight duties and the latest developments in the UIF’s operations.
Online Tools Empower Employees
Employees now have more tools at their disposal to verify whether their employers have registered them with the UIF. One such tool is u-file, an online platform that allows employees to check their registration status easily. The UIF’s efforts to modernize and collaborate with other government entities have made it easier for workers to ensure their rights are protected.
Committee Concerns Over Fraudulent Practices
During the induction session, members of the Portfolio Committee on Employment and Labour discussed various issues, including fraudulent practices by some employers. There were reports of employers who failed to register their employees with the UIF but still sought to benefit from government relief programmes like the Temporary Employer/Employee Relief Scheme (TERS), introduced during the Covid-19 pandemic.
An example highlighted involved an employer in Limpopo who fraudulently claimed TERS funds by using names stolen from a government department. The UIF has since taken action to reclaim the funds, and the company in question has committed to refunding the money.
UIF Collaborative Efforts To Strengthen Systems
UIF Commissioner Teboho Maruping informed the committee that the UIF has significantly improved its systems by working collaboratively with other government departments and entities, such as the South African Revenue Service (SARS) and the Department of Home Affairs. These partnerships are crucial in detecting and preventing fraud.
Key Issues Raised By Committee Members
Committee members raised several important questions during the workshop. Mr. Michael Bagraim, a committee member, asked about the availability of funds to support businesses closed due to the Covid-19 pandemic and how this affects the revitalization of the UIF. He also inquired about the timeline for transforming the UIF into a new entity and the potential benefits of collaborating with SARS to streamline payment processes.
Ms. Ntombenhle Mbhele, another committee member, expressed concerns about the consequences for employers engaging in fraudulent activities. She emphasized the need for the UIF to take action against such employers, as their actions deprive workers of their rights. Ms. Mbhele also highlighted the challenges faced by employees, particularly women, who leave their jobs due to abusive managers. She urged the UIF to consider innovative approaches, such as employing unemployed graduates in rural areas to assist with claims applications.
UIF Responses And Future Plans
In response to the committee’s concerns, the UIF addressed various issues, including the waiting period for spouses of deceased persons to lodge claims. Currently, there is an 18-month waiting period, but the UIF is considering extending this period. The UIF also plans to use the Home Affairs database to proactively approach spouses before they launch claims.
The UIF clarified the ongoing Thuja Capital matter, explaining that it primarily concerns defamation of the Minister. However, the Public Finance Management Act was noted as having been transgressed, and the High Court judgment, which found in favor of the department, alluded to this fact. The matter is currently under appeal.
Committee Chairperson Commitment To Addressing Challenges
The Chairperson of the committee, Mr. Boyce Maneli, emphasized that the committee would play a key role in finding solutions to the challenges facing the UIF. The committee’s commitment to supporting the UIF in its efforts to improve systems and combat fraud was clear.
Conclusion
The Portfolio Committee on Employment and Labour’s induction workshop provided an important platform for discussing the challenges and improvements within the UIF. With enhanced systems and increased collaboration with other government entities, the UIF is better equipped to protect employees and hold fraudulent employers accountable. The committee’s active involvement ensures that these issues remain a priority, paving the way for a more transparent and efficient UIF system.
