Less than 10% of employers have registered their employees for unemployment benefits, a survey conducted by the Unemployment Insurance Fund (UIF) revealed on Wednesday.
”Our records show that there are some 400 000 employers countrywide paying UIF. However, only 30 000 have forwarded their employees’ particulars to the fund,” the UIF said in a statement.
”The remaining 370 000 employers may face penalties, but more importantly they are putting their workers at risk.”
The Unemployment Insurance Act of 2002 stipulates that employers provide the fund with pay roll information. UIF uses the information to develop its electronic database.
UIF commissioner Shadrack Mkhonto said access to unemployment benefits would be twice as difficult for workers who were not registered on the UIF database.
He said the electronic database system, which replaced the old ”blue card” system, was more efficient and convenient.
”The new system eliminates long queues and streamlines administration at the UIF,” Mkhonto said.
”It means that employees need only submit a claim form and produce a identity document to access benefits, as opposed to the previous system, where numerous documents were needed to process a claim.” – Sapa