4 September 2007
While the kick-off of the First Division 2007/08 football season has been
delayed, one of its affiliates and top Limpopo based Dynamos Football Club has
already been caught off-side for contravening sections of the Unemployment
Insurance Act No 63 of 2001.
The Act requires of every employer, as soon as he/she commences activities
as an employer, to provide the information of all employees regardless of their
earnings to the Unemployment Insurance Commissioner. The information
contemplated must include the physical and postal address of the business as
well as the details of all employees such as names, identification number and
remuneration.
UIF Spokesperson, Kgomotso Sebetso, said any change of details of employees
should be forwarded to the office of the Unemployment Insurance Commissioner
within seven days after the end of each month. If you pay your contributions
annually, you are expected to submit your declarations once a year.
This information was used to create and maintain a database of contributors,
beneficiaries and employers as required by law. The database was also utilised
to determine the payment due to an employee in the event of a claim for
benefits (unemployment, illness, maternity, adoption and dependants).
Sebetso explained that failure to comply with these provisions of the Act
constituted an offence which was punishable in terms of this Act. The offender
shall be liable to a fine or imprisonment, or to both a fine and
imprisonment.
"However, in contravention of the law our Labour inspectors in the Dynamos'
case found that the employer has failed to declare his employees with the
Unemployment Insurance Commissioner (UIF) since 2003. It has also been found
that the employer is in arrears with his UIF contributions," he added.
"There is also evidence that the employer is deducting one percent of the
employee's salary as required by the law, but the money never reaches the UIF,"
he added.
Despite several attempts to recover the UIF contributions from the club,
management failed to resolve the impasse leaving the Department of Labour with
no option but to take legal action.
The Department of Labour with the help of the National Prosecuting Authority
served the Dynamos Football Club with summons to appear in court next week
Friday, 14 September 2007.
Emanating from this case Sebetso urged all workers to report their employers
if they suspected or have evidence that they had not been registered with the
UIF.
"It is always advisable for workers to check and ensure that they have been
registered with the UIF. The Fund has currently registered more than 7,2
million workers in both the domestic and the business sectors."
Enquiries:
Kgomotso Sebetso
Cell: 073 2699 870
E-mail: kgomotoss@labour.gov.za
Issued by: Department of Labour
4 September 2007
Source: Department of Labour (http://www.labour.gov.za)
