Factory Burnt Down. Staff get paid by UIF?

[Annetta]

Hi All

Could someone with detailed LRA knowledge kindly advise.

If a business has been burnt down in civil unrest, and insurance (SASRIA) may take up to six months to pay out, how are the staff paid? Do they apply to the UIF? Thank you.

[Dave A]

To some extent your decision might be influenced by the nature of your insurance cover. However, if you commence employment reduction for operational reasons (retrenchment), the staff dismissed as a result would then be able to claim UIF as their employment has been terminated.

You could then rehire when the factory is ready to resume operations.

[horacewelch]

That’s correct @Dave A. For the staff dismissed, the UIF won’t be applicable. But for the rest, it depends upon the compensation measures you provide after the accident. I believe this is how it works.

[Dave A]

That’s correct @Dave A. For the staff dismissed, the UIF won’t be applicable. But for the rest, it depends upon the compensation measures you provide after the accident. I believe this is how it works.

This is the unfortunate consequence when foreigners start expressing opinions on South African matters they know nothing about.

For starters, UIF (Unemployment Insurance Fund) is applicable for staff who are dismissed.

But this short post is even worse than that. If you were familiar with South Africa and in tune with current events, you would appreciate just how cringeworthy your post is.

This was no accident...