UNEMPLOYMENT INSURANCE FUND . DEPARTMENT OF LABOUR UNEMPLOYMENT INSURANCE FUND . Presentation to Select Committee on Economic and Business Development

RESPONSE TO SUBMISSION RECEIVED THROUGH SELECT COMMITTEE Three submissions were received through the select Committee. Two of them were not relevant to the UI Bill. Only one from ABSA was relevant.

RESPONSE TO ISSUES RAISED BY ABSA Amendment of Section 5 Contributor: Section 1 of the Act (UI Act) defines contributor as a natural person who is or was employed and the Employer. Both contribute 1% of earnings which makes a total of 2%. To whom this Act, applies in terms of section 3 (applies and who can satisfy the Commissioner that he or she has made contributions for purposes of this Act.) Learners not registered with Tax Reference number prior to employment. In terms of the UI Act, the person employed is required to have a 13 bar coded ID, valid work permit and passport. This is not different to any employees who do not have Tax Reference numbers e.g domestic workers. No reference made to Interns and Apprentices Already covered, the Act currently exclude section 18(2) (Skill Development Act) learners and the intention is to remove the exclusion. Anyone working for more than 24 hours which refers to all employees including Internship and Apprentices.

RESPONSE TO ISSUES RAISED BY ABSA Incomplete or Unsuccessful Learner-ships The learners acquire credits based on the period they were employed. UIF pays benefit on condition that the learner did not resign (abscond) which is confirmed by the employer. Challenges with the SETA Accreditation This is an operational issue that must be addressed with the relevant SETA and DHET. Maternity Leave -Learners The UIF is increasing the overall maternity benefits. This does not affect the contribution by the employer. As such the learner will benefit based on the period they were employed. Maternity benefit is temporary until the person return to work.

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