Labour minister Thulas Nxesi says the Ters system is being reconfigured to deal with the problem
Workers who received payments under the temporary employer/employee benefit have not been able to get unemployment insurance fund benefits when they were subsequently retrenched.that there will be mass retrenchments in future as more companies go under. Unemployment Insurance Fund to distressed companies that have been unable to pay their employees their full salaries because of the negative affect of the pandemic.
Labour minister Thulas Nxesi acknowledged the problem in reply to a question in the National Assembly on Wednesday during a question-and-answer session between MPs and ministers in the economic cluster. African Christian Democratic Party MP Wayne Thring said his party had received several complaints about this problem.
Nxesi said the problem arose after the system rejected two claims as a case of fraud. The department was looking into the issue and was reconfiguring the system to deal with it. Replying to another question, Nxesi said that about 700,000 claimants for the Ters benefit had not been paid. This was due to a number of reasons including employers who had received payments but had not handed the money over to their employees and also due to foreign workers who did not have proper identification documents.
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