by John Botha: COO of Global Business Solutions
It often seems ambiguous when employers are called on to create and protect jobs while the economy is tanking. However, there are a number of levers that can be pulled to reduce the adverse impact of business cycles and cost creep. These include:
- Connecting to programmes like the Youth Employment Service (YES) and leveraging associated tax breaks in addition to B-BBEE benefits, as well as
- Contracting flexibly.
However, not all employers are able to do this as they already employ workforces that are under consideration for retrenchment if business does not pick up.
It is with the latter scenario in mind that Government offer distressed employers access to the Temporary Employer/Employee Relief Scheme (TERS). TERS offers an expedited process via the CCMA in which application can be made to the extent that up to 75% of the employee’s basic wage as well as agreed training will be covered by the UIF during the period up to a maximum of R12 084 pm. The employer is, however, required to continue paying the employee and employer contribution to benefit funds.
The TERS is a refreshed version of the Training Layoff Scheme and in three months 18 applications were received from employers and 8 were processed and concluded within 3 weeks.