UIF Warns Road Freight And Logistics Bosses. The Unemployment Insurance Fund (UIF) has intensified its efforts to clamp down on non-compliant employers in South Africa’s road freight and logistics sector. At a recent seminar held at the Radisson Blu Hotel in uMhlanga, key stakeholders gathered to discuss compliance with the Unemployment Insurance Act, recent developments in UIF policies, and the road ahead for employers.

This meeting marks a significant moment for the road freight and logistics industry, which has faced increasing scrutiny from the UIF following the pandemic-era Temporary Employer/Employee Relief Scheme (TERS). The fund is now actively verifying compliance and tracking every cent disbursed under the scheme, with a focus on ensuring that employers are adhering to UIF rules and regulations.

UIF Commitment to Holding Employers Accountable

Representing UIF Commissioner Teboho Maruping, senior official Smiso Nkosi hosted the seminar, which included media, employers, and other stakeholders. Nkosi emphasized the UIF’s commitment to accountability and transparency, especially in the wake of the Covid-19 pandemic, which saw the introduction of the TERS program to assist employers and employees in maintaining financial stability during lockdowns.

Nkosi highlighted the UIF’s “follow the money” project, which seeks to track the distribution of TERS funds and ensure that they were used appropriately. This initiative will scrutinize every employer who received TERS money to verify their compliance. He urged employers to be proactive and transparent by submitting the necessary documents for verification and disclosing any instances of non-compliance ahead of time.

“We are requesting employers to be prepared because we will verify each and every cent of Covid TERS. They will give us their documents and we advise them to indicate to us if they did not comply in advance,” said Nkosi.

R30 Billion Verified, Fraud Cases Detected

So far, the UIF has successfully verified R30 billion of the R65 billion disbursed under the TERS program. However, during this process, the fund has uncovered 40 cases of fraud. Nkosi explained that non-compliance could take many forms, including applying for TERS funds on behalf of individuals who were not working or on maternity leave, or overstating salaries to secure higher payouts.

These fraud cases are just the tip of the iceberg, with further verifications ongoing. Nkosi made it clear that the UIF would continue to rigorously check all remaining funds to ensure that employers who took advantage of the system are held accountable.

Compliance Beyond TERS: Other Key Topics at the Seminar

The seminar also addressed several other critical topics relevant to employers in the road freight and logistics industry. These included discussions on the Compensation for Occupational Injuries and Diseases Act (COIDA), the role of the Public Employment Service (PES) branch in the Department of Employment and Labour, and the Labour Activation Programme (LAP).

Nkosi and other officials also covered operational challenges faced by companies that hire foreign nationals as drivers, a particularly topical issue in South Africa. The seminar highlighted the National Minimum Wage Act and the Inspection and Enforcement Services (IES), ensuring employers were fully briefed on the legal obligations they must follow.

A Focus on Foreign Employment: Balancing Compliance and Local Job Creation

One of the most pressing issues discussed at the seminar was the employment of foreign nationals in the road freight industry. Kershnie Govender, a manager at Positive Freight Solutions, raised concerns about compliance and employee protection, asking if the government had specific programs to support workers in the industry.

Mantombi Bobani, Director of Labour Migration, responded by explaining that in South Africa, all workers—whether local or foreign—are treated the same under labor laws. However, she emphasized the importance of prioritizing the employment of South Africans, especially in roles where skill shortages are not an issue. Bobani pointed out that truck driving is not listed as a scarce skill in government policies, and employers must demonstrate that they are not deliberately excluding South African workers.

“I want to ask a question to employers: Did they really not find anyone from this country to drive those trucks? Driving is not a scarce skill, and it is not in the critical skills list for the government,” she said. Employers must provide evidence if they seek to hire foreign nationals, ensuring that they are not intentionally sidelining local talent.

Employers Speak Out: An Eye-Opening Experience

For many employers attending the seminar, the event was a revelation. Logan Nair, a dedicated freight and trading manager, remarked that the conference was an eye-opener, particularly regarding the UIF’s efforts to address slow systems and inefficiencies. He expressed gratitude that officials acknowledged these shortcomings and committed to improving them.

Nair also noted the growing pressure on employers to comply with regulations, especially in light of protests over the employment of foreign nationals as drivers. Companies are becoming increasingly aware of the need to hire local talent and ensure compliance with all legal requirements.

“I believe all the members of the Southern African Association of Freight Forwarders are very mindful of this. The general concession is to comply and have trained drivers. We are also looking at local drivers, whilst there are foreign drivers hired,” said Nair.

Conclusion

The seminar underscored the UIF commitment to enforcing compliance within the road freight and logistics industry. Employers are urged to follow the rules set out by the Unemployment Insurance Act and other labor laws, ensuring they remain accountable for any TERS funds received during the pandemic. The UIF rigorous verification process is a reminder that employers must be transparent and prepared for scrutiny.