Solidarity threatens with legal action against the UIF 

4 June 2020

In a letter to the Unemployment Insurance Fund (UIF), Solidarity today threatened with legal action should the UIF fail to take urgent steps to make payments to unemployed members properly and on time. 

“We are fully aware of the fact that the current pandemic placed an excessive limit on the workforce, and that these unforeseen challenges have increased the number of unemployed members and applicants who applied for financial relief,” said Anton van der Bijl, Head of Solidarity’s Labour Law Services. “However, it is with grave concern that we take note of the fact that the UIF, due to administrative inattention, only started accepting applications for payouts on the last working day of May, thus creating an insurmountable backlog in the payouts.” 

Solidarity further explains that there appears to be a drastic increase in non-compliance with statutory UIF obligations from employers, with willingness from the UIF to overlook this non-compliance. 

“The non-compliance, and especially the backlog, creates unnecessary financial hardship for employees who are already experiencing financial stress because they are not receiving their salaries and now the payments of their UIF benefits are also being delayed. This, despite the fact that employers and employees are loyal contributors who submitted their claims in accordance with the prescribed timeframes and procedures,” explained Van der Bijl. 

Solidarity will take legal action against the commissioner of the UIF and other relevant parties if the requirements are not met. 

“If the leaders of the UIF fail to fulfil their statutory and fiduciary duty towards all stakeholders, we will have no choice but to continue to urgent legal action against them. This could include the process of urgent court procedures,” Van der Bijl concluded. 

Issued by Anton van der Bijl, Head: Labour Law Services, Solidarity, 4 June 2020