Government measures in key jurisdictions 3rd edition final - Flipbook - Page 111
SouthAfrica
•
The national lockdown imposed by the government of the RSA with effect from 27 March 2020, has 5
levels. With effect from 1 May 2020, the RSA moved from level 5 to level 4 and with effect of 1 June
2020 from level 4 to level 3 (level 5 being the most stringent, and 1 being the least stringent). The
different levels put in place various restrictions on which industries can operate, either fully or in part.
This is presently done by restricting the operation of certain designated businesses and services.
Employers who are able to operate, either fully or in part, are expected to comply with stringent
health and safety measures. Since lockdown level 3 a number of additional businesses and services
have been allowed to recommence operations. This list is constantly being updated / revised. The
restrictions on business have also constantly been relaxed during the currency of lockdown level 3.
No announcement has, as yet, been made about when lockdown level 2 will commence.
•
Absent industry specific provisions to the contrary, employees who are unable to render services to
their employers during the lockdown are not entitled to be paid.
•
In response to the financial consequences for employees and employer alike, the government has put
in place a number of measures aimed at assisting employers, some of which are industry specific. A
number of these measures are now coming to an end, in conjunction with the easing of the
lockdown. One such measure is
the Covid-19 Temporary Employer – Employee Scheme (Covid-19 TERS), which provides
for the payment of benefits to employees employed by employers who have had their operations,
either partially or entirely, closed for a period of three months or less due to
the Covid-19 pandemic. The minimum benefit payable for each employee is R3,500 per month and the
maximum is approximately R6,638.40 per month. This benefit was
available for March 2020, April 2020 and June 2020. As of present date, there is no intention by
Government to extent this benefit further.
•
Additional measures available for employees include sick leave benefits, illness benefits, reduced
work time benefits (where the business is operating but on, for instance, short-time) and
particular compensation where employees contract Covid-19.
•
There are also benefits which assist employers, by virtue of their status as businesses, as stated in the
above section
Insolvency
•
Has the
government
made any
changes to
insolvency
legislation?
There have been no changes to the legislation governing insolvencies in RSA, however, the
Companies and Intellectual Properties Commission (“
”) has issued various notices under the
Companies Act No. 71 of 2008 (“
”) in respect of the procedure relating to
companies who are, or will be, in business rescue as a result of financial distress.
•
In notice 17 of 2020, the CIPC undertook not to invoke its powers under section 22 of the
Companies Act (to issue compliance notices to business trading recklessly) in respect of
companies that are trading in temporarily insolvent circumstances as a direct result of the Covid19 pandemic. This notice will lapse within 60 days of the declaration that the national disaster has
been lifted.
•
The CIPC also temporarily ceased operating at full capacity as a result of the lockdown and as such
no processing of documents or filings could take place from 24 March 2020 to 30 April 2020. In
terms of section 129 of the Companies Act, a company’s board resolution to place itself into
business rescue only comes into effect when the relevant resolution placing the company in
business rescue and supporting documents are filed with the CIPC. The CIPC accordingly provided
for a dies non period for these dates during which no business would be penalised for its inability
to file resolutions and supporting documentation to commence business rescue.
Employment
What financial
support is the
government
providing
to businesses and to
individuals on
employment
Government measures in key jurisdictions
111