Moneyweb
The Department of Employment and Labour has announced a massive increase in the budget for its Temporary Employer-Employee Relief Scheme
On Sunday, Minister Nomakosazana Meth said the budget would jump from R400 million to R2.4 billion, for the current financial year.
She said this significant boost aims to assist companies in distress and prevent employee layoffs amid unstable economic conditions.
Minister Meth said the increase in the TERS budget is a proactive response to volatile economic trends that threaten the livelihoods of impoverished workers and the sustainability of businesses.
In providing a rationale for the big increase in the budget, the Minister said recent economic challenges have led to significant job losses across various sectors.
“During the 2023/2024 financial year, the Commission for Conciliation, Mediation and Arbitration (CCMA) reported that out of 38,428 employees who were likely to be retrenched, a total of 14,887 jobs (39%) were saved through various interventions.
“However, actual retrenchments amounted to 22,554,” Meth said.
Minister Meth said since its inception, TERS has been instrumental in supporting a wide range of industries severely impacted by economic challenges.
She the business sectors that have notably benefited from the TERS scheme included hospitality and tourism, hotels and restaurants as well as travel agents.
In manufacturing, TERS assisted factories experiencing reduced demand and supply chain disruptions, as well as the retail sector that faced reduced consumer spending.
The Department of Employment and Labour said employers seeking to participate in the TERS scheme will be required to provide documentary evidence for evaluation:
*Audited Annual Financial Statements for the past two financial years.
* Independently Reviewed Annual Financial Statements for companies not legally required to be audited, covering the past two financial years.
*Independently Reviewed Management Accounts with comparative figures if the latest financial statements are older than three months.
*Termination of Contract and Bank Statement for individual applicants.
*Business Case outlining the triggers for distress and proposed remedial actions.
