Insurance Fund (UIF) Law
10 September 2007
The Department of Labour has congratulated the majority of professional
football teams for religiously making Unemployment Insurance Fund (UIF)
payments, but also at the same time warned them against contravening sections
of the Unemployment Insurance Act 63 of 2001.
Unemployment Insurance Fund (UIF) Spokesperson, Kgomotso Sebetso, said it
was encouraging to see almost 90 percent of the teams in the Professional
Soccer League were extending coverage to their workers, including players. He
said only two percent of the teams were not up to date with their payments.
However, unfortunately not the same can be said about submitting information of
their workers on a regular basis as required by law and this was in
contravention of the law.
He said employers in the professional football league were obliged, like any
other employers in the commercial sector, to register their businesses and
professional players with the UIF.
"Employers are compelled by law to provide the information of all their
workers regardless of their earnings to the Unemployment Insurance
Commissioner. The information contemplated here should include details of all
workers such as names, identification number and remuneration," he explained.
Sebetso said any changes in the details of players affected in the preceding
month should reach the office of the Commissioner within seven days of the
following month.
"When players leave your club, the employer is obliged to inform the
Commissioner immediately with reasons for the termination of contract," he
said. This information was used to create and maintain a database of
contributors, beneficiaries and employers as required by law. The database is
also utilised to determine the payment due to an employee in the event of a
claim for benefits (unemployment, illness, maternity, adoption and
dependants).
The database was also utilised to calculate the money due to dependants of
the main contributor in the case of death. Failure to submit declarations
timeously lead to unnecessary delays and inconvenience in receiving UIF
payments. Sebetso said although the majority of professional teams had
registered their businesses with the UIF and were making regular contributions,
the Department of Labour had noted with concern that the teams were not
submitting details of their workers, including players, (declarations) on a
regular basis as required by law.
"Despite the fact that it is a requirement in terms of the law, declarations
also assist both the UIF and employer in making proper allocations to the
contributions received monthly or yearly."
"Some of the teams have either not been updating details of their players
and workers on a regular basis or have not been declaring at all or this was a
matter of grave concern to us," he said. Sebetso, however, added that all was
not lost as the Department of Labour was now in the process of engaging
employers in the football fraternity to educate and create awareness around
their obligations as employers.
Employers who have electronic payroll systems can send their information to
the database electronically in the specified format to declarations@uif.gov.za or the information
can be submitted manually by filling in a UI-19/UI-19D form, which is available
on our website http://www.labour.gov.za
as well as at provincial offices and labour centres of the Department of
Labour. Failure to comply with these provisions of the Act constitutes an
offence which is punishable in terms of this Act. The offender shall be liable
to a fine or imprisonment, or to both a fine and imprisonment.
For further assistance visit your nearest labour centre or the website of
the Department of Labour at http://www.labour.gov.za or call the UIF call
centre number at 012 337 1680.
Enquiries:
Kgomotso Sebetso
Cell: 073 2699 870
E-mail: kgomotso.sebetso@labour.gov.za
Issued by: Department of Labour
10 September 2007
Source: Department of Labour (http://www.labour.gov.za)
