Home Page ->
Legal Articles -> Deducting for UIF but never registered
Welcome to Scorpion’s Legal Tips! Every week we’ll share stories of injustice and show you how you can strike back legally.
A question asked during one of Scorpion Legal Protection’s live Q&A’s on their Facebook page was what to do if your employer has been deducting for UIF, but then when you try to claim UIF, you are told that you were never registered.
First, it’s important to note that the Act only speaks to employees who work more than 24 hours a month. If you work less hours than this, the Act does not apply to you.
The Act explains in chapter 2, section 6 that the employee must pay 1% of their monthly remuneration to the fund, and the employer must pay 1% of the employee’s remuneration to the fund. It is the employer’s responsibility to make sure these contributions are paid over to the UIF each month. If the employer does not deduct UIF from the employee’s pay each month (for example, because they forgot to) and then realises this, the employer is not allowed to then deduct additional UIF payments from the employee’s salary to make up for what was not paid in the past. The employer can only start deducting the 1% for UIF going forward only (section 7(3)(C)).
In addition, section 10(3) says it is the employer’s responsibility to register employees with the UIF – it is not enough just to register the company, the employer must specifically register each individual as an employee.
If you find that your employer has not registered you with the UIF, you must report your employer to the Department of Labour. You don’t have to do this in person, you can contact them on their website or speak to them over the phone by calling 080 003 0007.
The Department of Labour (DoL) has a sub-unit called ’employer audit’, which will calculate the money owed to the fund and the interest on it, after which the law will be enforced to ensure the employer pays. Try and give them as much detail as you can about your employer to help save time, for example, the employer’s contact details, address and UIF reference number of the company if possible.
It’s possible that the employer has been paying UIF but has not registered you with the UIF. This could take some time to sort out. The process can be lengthy and complicated, because the department will need to verify your details to make sure you are who you say you are and that what you are claiming for is valid before paying out any benefits. Employees can check their UIF status themselves by calling 080 003 0007 or by visiting their nearest Labour Centre.
If you are afraid of reporting your employer due to fear of being victimised or fired if your employer finds out, you should know that the law is there to protect you. The Labour Relations Act together with the CCMA will protect employees if they are reporting the matter to protect their rights. If your employer fires you, reduces your working hours or pay, or in any way ‘punishes’ you for reporting them, you can go to the CCMA.
Employers who have not registered their workers with the UIF will face harsh penalties.
You may also be interested in:
3 must-know tips for CCMA arbitration
Can employers deduct for damages or loss?
Disciplinary hearings explained step by step
If you have a query, ask Scorpion Legal Protection on Facebook and ask your question during our next Live Q&A on 1 April 2021.
* This is only basic advice and cannot be relied on solely. The information is correct at the time of being sent to publishing.
Date added: 24 March 2021
If you prefer to leave us an online query, please complete the form below and we will call you back.
Please select an enquiry type
Membership card / policy update query
Income Tax query
Last will & testament
Please select a complaint type
Poor service/Rude staff