Labour rights are a sensitive issue in South Africa today.

Both employers and employees need to be aware of their obligations and responsibilities under the law in this regard to avoid ending up on the wrong side of it.

Anyone who employs a domestic worker is bound by law to register that person with the unemployment fund (UIF), but surprisingly few employers are aware of it. Ignorance is not a defence under the law.

Do you employ a domestic worker? Do you know what your rights and responsibilities are?

Let us first have a look at what UIF is:

The Unemployment Insurance Fund (UIF) gives short-term relief to workers when they become;

1. unemployed or are unable to work because of maternity, adoption and parental leave, or illness.
2. It also provides relief to the dependants of a deceased contributor.
3. An employer needs to register employees for UIF and assist with monthly contributions.

Who is it for?

All employees, as well as their employers, are responsible for contributions to the UIF. However, an employee is excluded from contributing to the UIF if he or she–

• Is employed by the employer for less than 24 hours a month
• Is employed as an officer or employee in the national or provincial sphere of Government
• Is the President, Deputy President, a Minister, Deputy Minister, a member of the National Assembly, a permanent delegate to the National Council of Provinces, a Premier, a member of an Executive Council or a member of a provincial legislature or
• Is a member of a municipal council, a traditional leader, a member of a provincial House of Traditional Leaders and a member of the Council of Traditional Leaders.

To summarize it for you; you can claim UIF if you:

• are employed or must have been employed.
• make or made monthly contributions to the UIF.
• work or worked more than 24 hours a month. 

You may not claim if you:

• are an employee of the state and hold certain positions in the government.
• work less than 24 hours a month.

Here is more information on what you need to know about UIF:

1. If your domestic worker works for you for more than 24 hours in a month, you need to register him/her with the Department of Labour for UIF. This is compulsory for both parties.
2. You, the employer, will be registered as such and will receive a UIF number. Your employee will be placed under your number for as long as they work for you.
3. If your employee becomes unemployed due to retrenchment, dismissal or contract expiry (NOT resignation) or is unable to work due to illness, maternity or adoption leave, they will be able to claim from the fund. This is under the condition that all contributions are current and paid up.
4. If you are in arrears, you are liable for the FULL amount outstanding as well as any penalties and interest owed.
5. Contributions are calculated as follows: 2% of the amount your employee earns per month, half of which you, the employer, are liable for and half of which your employee must pay as a deduction from his/her salary. The deadline for payment of contributions is the 7th of each month.
6. UIF for domestic employees started on 1 April 2003, and calculations for UIF benefits are made as of this date, regardless of whether or not your employee has been in your employee for longer.
7. According to the law, you are bound to adhere to a minimum wage. These are structured as follows:
8. Minimum wage for the period 1 December 2018 - 15 November 2019 for persons working 27 hours a week or more :
9. Hourly rate: R13.69
10. Weekly rate: R616.03
11. Monthly rate: R2669.24
12. Minimum-wage for the. 1 December 2018 – 15 November 2019 for persons working 27 hours a week or less :
13. Hourly rate: R16.03
14. Weekly rate: R432.78
15. Monthly rate: R1875.22
16. UIF payments can be made to the Department of Labour via direct deposit, EFT or uFiling.

What steps must I take?

Any employer, who is registered with SARS for Employees’ Tax, also needs to register to pay UIF contributions.

You can register once for all different tax types using the client information system.

How and when should it be paid?

It must be paid within seven days after the end of the month during which the amount was deducted. If the last day for payment falls on a public holiday or weekend, the payment must be made on the last business day before the public holiday or weekend.

The following payment methods are available:

• eFiling
• Electronic payments through the internet (EFT)
• At a branch of one of the relevant approved banking institutions.

You can visit https://www.gov.za/ for more information.