Government measures in key jurisdictions 4th edition - Flipbook - Page 118
SouthAfrica
Employment
•
What financial
support is the
government
providing
to businesses and to
individuals on
employment
•
•
•
•
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 and with effect of 18 August 2020 from level 3 to level 2 (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 allowing most business
to operate. Employers who are able to operate, either fully or in part, are expected to comply with
stringent health and safety measures. Since lockdown level 2 the majority businesses and services
have been allowed to recommence operations. No announcement has, as yet, been made about
when lockdown level 1 will commence.
In the absence of industry specific provisions to the contrary, employees who are unable to render
services to their employers because of the lockdown provisions are not entitled to be paid.
The government has put in place a number of measures aimed at assisting employers and
employees, some of which are industry specific. Some 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
due to the lockdown. The minimum benefit payable for each qualifying employee is R3,500 per month
and the maximum is R6,638.40 per month. This benefit is available for March 2020, April 2020, May
2020, June 2020, July 2020, August 2020 and part of September 2020. As of present date, the benefit
will come to an end on the expiry of the national state of disaster (which is due, in the absence of
further extension, to come to an end on 15 October 2020).
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 (“CIPC”) has issued various notices under the
Companies Act No. 71 of 2008 (“Companies Act”) 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.
Government measures in key jurisdictions
118