What Happens if an Employer Doesn’t Pay UIF?
What Happens if an Employer Doesn’t Pay UIF? Recent years have seen an increase in unemployment as a devastating issue. The South African government has introduced the SASSA SRD 350 grant for unemployed individuals, but there are times when employees are unable to work as a result of being terminated or retrenched.
It is something that will help me through such desperate times quite smoothly as luckily I knew how to check my UIF registration status.
After being terminated by your employer, becoming ill, or needing maternity leave, you are eligible for unemployment insurance benefits provided by the South African government.
If the employer does not pay the UIF fund, the employee is not eligible to claim these benefits. Here is the complete procedure to report an employer who has not paid the UIF fund.
Read Also: UIF Login
Should Employer Register you for UIF?
As part of the 1996 Unemployment Insurance Act, the South African government introduced the UIF fund, which benefits employees who have been downsized, terminated or are unable to work for health reasons.
Employers and employees pay the amount for the UIF grant monthly, not the government.
In the case of employees working more than twenty-four hours per month, your employer is responsible not only for registering you for the UIF fund, but also for paying the required monthly amount for it.
There is a separate registration process for each employee. The UIF fund is 2 percent of the employee’s total monthly salary. Only one percent is paid by the employer.
Whether the employer is a South African national or a registered foreigner, the department of employment and labour must register him as an employer. Once an employee has been registered for more than 27 hours, the employer must pay one percent on his behalf and deduct the other one percent from the employee’s monthly salary. By EFT, approved banks, or by eFiling, the amount will be paid to SARS.
How To Confirm That One Has Been Registered For The UIF Fund?
It is a fact that employers are legally required not only to register but also to pay the UIF fund each month within the time frame, yet there are still many cases where they fail to do so.
Once the amount has been deducted from your pay, many employees are unbothered about the UIF fund. The deduction of the amount does not confirm that you have been registered or that you are receiving payments from the fund.
With the help of my UIF number, I was able to confirm that the amount was deducted from my salary and paid to SARS. Employers might deduct the amount from your salary and fail to register or pay it to SARS.
For confirmation, you will also need your UIF number. If you don’t have it, you can either go to your local labour center or visit the UIF’s official website.
In order to receive the UIF number, you must provide the personal information requested on the form. As soon as you submit the form, you will be given the UIF number. If you wish to verify your registration with the UIF fund, you can visit any Labour department office. If you are registered, you will need to provide the officer with your 13-digit ID number and the UIF number.
How To Report An Employer For Not Paying UIF?
As a result of non-payment of the UIF fund, the employer is responsible. If an employee works over 27 hours a month and does not receive any other SRD grants, he or she is eligible to receive the UIF fund, regardless of whether the employee is a domestic or commercial employee. Under the Unemployment Insurance Contributions Act, 2002, and the Unemployment Insurance Act, 2001, employers are required to comply with the law.
In addition to regulating the entire UIF fund registration and payment process, the South African Revenue Service, or SARS, will collect the UIF amount monthly from the employer. The UIF fraud hotline platforms can be used to report your employer if you find out that they have not been paying the UIF contribution.
Whom To Contact?
You can report your employer to the Department of Labour if they refuse to pay your UIF fund. In my previous job, I experienced this issue. I was afraid of losing my job, and a friend told me about the reporting procedure. I found out at the department of labour that my employer had not paid SARS my UIF contribution.
I had to call in to report my employer for non-payment while using the toll-free fraud hotline number. In most cases, the employer audit unit will take action and calculate the penalty that the employer has to pay. The department of labor ensures not only the payment of the fund but also the security of the employee.
You can go to the labour center, but if you are unable to go for any reason, there are many other sources to file a complaint against your employer. In order to file a complaint against an employer, you must visit ufiling.labour.gov.za/uif/. You can also call 0800 212 799 or 080 003 0007.
You can also send an email to [email protected] in order to report the employer. You will need to provide information about your employer. Among the information you should provide is your UIF reference number, your employer’s name, your address, and your contact information. The Department of Labour will handle the rest.
How To Check The UIF Status?
Employers should pay the UIF contribution that has been deducted each month within the first week of the month so you can claim the UIF fund.
Here is the method I used to verify that my employer had paid my UIF fund contribution, even though I was sure I had been registered with the department of labour and employment.
- Go to the ufiling.labour.gov.za/uif/ website first.
- On the main page, you will find two options: registration and login. If you have already been registered by your employer, skip this step, but if not, click on register.
- After agreeing to the terms of service, a form will appear where you will enter your user name, full name, ID type, and ID number.
- The labor department will register you once you have provided all the information.
- After selecting the login tab, you have to enter your username and password to access your uFiling account.
- The view my UIF contribution link will take you to the option to get a declaration. Once you select this option, a list of your monthly UIF contributions from your employer will appear.
- If the row for any month has the green color font, then you are clear with your payment, but if it has the red font, then you might need to contact your employer for non-payment of the UIF fund.
Read Also: UIF Status Check Online 2024
Conclusion
Employers often commit UIF fraud against domestic as well as commercial employees. I went through this once before, but the department of employment and labour provided employee-friendly services that allowed me to claim the UIF benefits. In this section, I have included all the details that will assist you in reporting an employer who is not paying the UIF fund.
