A Grassroots Approach to Boost Employer Compliance in South Africa

The Unemployment Insurance Fund (UIF) and the Congress of South African Trade Unions (COSATU) recently came together in Limpopo province to discuss ways of increasing compliance levels among employers. The aim of the meeting was to strengthen the relationship between the two organizations and to find ways of empowering workers to hold non-compliant employers accountable.

A New Approach to Compliance

During the meeting, UIF Commissioner Teboho Maruping proposed a bottom-up approach to compliance that would involve shop stewards serving as UIF information focal points for workers. This would enable workers to check their registration and declaration status with the UIF and to hold their employers accountable if necessary.

Maruping emphasized the need for a joint effort between organized labor and the UIF to maximize compliance levels. He highlighted that non-compliance by employers was a significant obstacle preventing workers from claiming UIF benefits in the Limpopo province.

Educating Workers About Their Rights

Maruping believes that educating workers about their rights and UIF benefits will increase business compliance across the country. He encouraged organized labor to share the UIF’s Unstructured Supplementary Service Data (USSD) code (134843# ) with workers so that they can verify their registration status with their employers.

During the meeting, Maruping also provided updates on the Covid-19 Temporary Employer-Employee Relief Scheme (Covid-19 TERS), revealing that R1.7 billion has been paid to 423,303 workers in the Limpopo province to date.

Auditing Companies

Smiso Nkosi, a manager in the UIF Commissioner’s Office, spoke about the ongoing forensic audits of companies in Limpopo and around South Africa to ensure that the correct amounts of Covid-19 TERS funds were distributed. These audits have led to arrests, including a businesswoman who received a 10-year imprisonment sentence for defrauding the UIF of Covid-19 TERS funds.

Commitment to Protecting Workers

COSATU Provincial Secretary, Hangwani Mashao, expressed his commitment to working with the UIF to protect workers. He highlighted the negative impact that non-compliant employers have on workers and emphasized the need for regular meetings to address worker challenges.

Empowering Workers Across Sectors and Industries

The meeting ended with both the UIF and organized labor agreeing to work together to empower workers across all sectors and industries. By tracking compliance progress and addressing worker challenges swiftly, these organizations aim to make a significant difference in the lives of South African workers.