Businesses can now apply for the ‘looting fund’ – here’s how

In a government gazette published on 10 August 2021, Employment and Labour minister Thulas Nexsi announced that employees who are unable to work due to the closure of workplaces as a result of the riots and looting in July will be paid out by government.

In eThekwini, KwaZulu-Natal, alone 40,000 businesses were affected and 129,000 jobs lost. Gauteng wasn’t hit as hard, with 14,500 jobs lost as a result of the violence.

Business owners will now be able to apply for relief on behalf of their employees.

How the temporary relief scheme will work

• If your business is closed and your employees are unable to work as a result, their income will be calculated at the rate of a sliding scale (38 – 60%) based on their monthly salary.
• Employees getting help from the relief scheme will not be able to claim more than R17,712 per month or receive less than R3,500.
• If an employee’s income is less than R3,500, a replacement income equal to that amount must be paid to them.
• Workers can only receive money from the relief scheme if the total of the relief together with any additional payment towards relief or salary is not more than the salary an employee would have ordinarily received for working during the period the business was closed.
• All payments must be made directly into a worker’s bank account.

The gazette also states that the minister can determine a flat rate for the financial relief should financial considerations dictate so.

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How to apply

You can apply by reporting the closure of your business as a result of the looting by complying with the application procedure issued by the Unemployment Insurance Fund.

You also need to follow the following steps:

• If you’re not already registered with the Unemployment Insurance Fund (UIF), you should do so.
• A business’ closure must be directly linked to damage and destruction caused by the riots and looting.
• Employers must confirm either in writing or electronically that they accept the terms of the scheme.
• You’ll need to be able to prove that you provided the South African Police Service with details and documentation of the destruction at your business caused by the riots and looting.
• You will also need a case number from the South African Police Service.
• If your business was insured, you will need to submit proof of submission and acknowledgement of receipt of the insurance claim.

The temporary relief scheme will be reviewed by the minister every two weeks on the advice of the Unemployment Insurance Commissioner.