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By Eric Naki

Political Editor


Cosatu welcomes changes to Unemployment Insurance Act

Cosatu said the the Unemployment Insurance Amendment Act would benefit jobless workers as well as mothers going on maternity leave.


Trade union federation Cosatu has welcomed the signing of the Unemployment Insurance Amendment Act into law by President Jacob Zuma, saying it would benefit thousands of jobless workers and mothers going on maternity leave.

Cosatu parliamentary coordinator Matthew Parks said the federation only regretted that it took “four long years for government to pass this very progressive and badly needed law”.

“If this Act had been adopted earlier, it could have helped thousands of mine and other workers, who have painfully lost their jobs over the past few years,” Parks said.

The law will see the Unemployment Insurance Fund (UIF) benefit period increased from 238 to 365 days, with maternity benefit up to 66% instead of 42% as is presently the case.

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It would cover employees who had lost working hours due to reduced time at their places of work and maternity would be separated from UIF benefits and claims.

Members of the Government Employees’ Pension Fund will also be included in UIF and maternity leave benefits, so will public servants who lost jobs due to dismissal and female employees who had miscarriages during the third trimester of pregnancy, or a stillborn birth.

According to the law, a family member or a nominated beneficiary of a deceased claimant will be allowed to receive their benefits, while no deduction or charge fee from the claimant’s benefit would be allowed.

The legislation also provides for the labour minister to issue regulations for domestic workers and employees of small businesses and enterprises to ensure they are covered.

“The labour department has to announce when the new act will come into effect,” Parks said.

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