LOCKDOWN ALERT LEVEL 4: WORKPLACE READINESS COVID-19 POLICY AND PROCEDURE
As we prepare our workplaces to a return to work under Alert Level 4, we must keep in mind that we are subject to:
- strict health protocols, and social distancing rules;
- return to work to be phased in to enable measures to make the workplace COVID-ready; and
- return to work to be done in a manner that avoids and reduces risks of infection.
ANNEXURE E OF THE REGULATION REFERS TO A WORKPLACE PLAN NEEDING TO BE DEVELOPED PRIOR TO THE REOPENING OF AN ENTERPRISE EMPLOYING PERSONS
For small businesses, the plan can be basic reflecting the size of the business, while for medium and larger businesses, a more detailed written plan should be developed given the larger numbers of persons at the workplace.
The Plan for medium and large businesses must include the following:
- the date the business will open and the hours of opening;
- the timetable setting out the phased return-to-work of employees, to enable appropriate measures to be taken to avoid and reduce the spread of the virus in the workplace;
- the steps taken to get the workplace COVID-19 ready;
- a list of staff who can work from home; staff who are 60 years or older; and staff with comorbidities who will be required to stay at home or work from home;
- arrangements for staff in the establishment:
- sanitary and social distancing measures and facilities at the entrance and exit to the workplace;
- screening facilities and systems;
- the attendance-record system and infrastructure;
- the work-area of employees;
- any designated area where the public is served;
- canteen and bathroom facilities;
- testing facilities (for establishments with more than 500 employees); and
- staff rotational arrangements (for establishments where fewer than 100% of employees will be permitted to work).*Arrangements for customers or members of the public, including sanitation and social distancing measures.
Please find attached a base Workplace Readiness COVID-19 Policy and Procedure. We urge you to add, amend and/or customise the draft so that it reflects the unique operational and business realities of your business.
SUMMARY OF THE COVID19 DIRECTION ON HEALTH AND SAFETY IN THE WORKPLACE
The Minister of Employment and Labour has issued a Direction setting out the measures that employers are required to take to prevent the transmission of COVID19 in workplaces.
The Direction applies to all workplaces covered by the Occupational Health and Safety Act, 1993 (OHSA). It does not apply to healthcare facilities, which are regulated by a Direction issued by the Minister of Health.
The Direction contains the basic measures that employers must take to prevent the transmission of the SARS-CoV-2 virus in the workplace.
Businesses that are re-opening must put these measures in place before restarting work.
A risk assessment must be undertaken to adapt the provisions of the Direction to the requirements of individual workplaces.
The Direction does not reduce the existing obligations on employers in terms of the Occupational Health and Safety Act, 1993.
Employers must take measures to protect the health and safety of everyone in their workplace. This includes employees of contractors, self-employed persons and volunteers.
Administrative measures
Every employer must:
- notify workers of the Direction and how it will implement it;
- inform employees that if they have COVID 19 symptoms they must not be at work and grant paid sick leave;
- appoint a manager to address the concerns of employees and consult with workplace representatives;
- take measures to minimise the contact between workers and between workers and the public to prevent transmission;
- minimise the number of workers in the workplace at any time through shift or working arrangements to achieve social distancing;
- provide employees with information concerning COVID 19 and how to prevent its transmission;
- report any diagnosis of COVID 19 at work to the Department of Health and the Department of Employment and Labour; investigate the cause and take appropriate measures; and
- support any contact tracing measures by the Department of Health.
Social distancing
Workplaces must be arranged to ensure a minimum of 1½ meters between workers. If this is not practicable, physical barriers must be erected and workers must be supplied free of charge with appropriate Personal Protective Equipment (PPE).
Social distancing must be implemented in all common areas in and around the workplace to prevent crowding.
Symptom screening
Employers must screen workers for symptoms of COVID 19. Workers with symptoms must be placed in isolation and arrangements made for their safe transport for a medical examination, testing and/or for self-isolation.
Employees who recover from COVID19 may return to work after a medical evaluation and be subject to ongoing monitoring.
Sanitisers and disinfectants
Employers must:
- provide sufficient quantities of hand sanitiser with at least 70% alcohol content;
- ensure that work surfaces, equipment and common areas such as toilets, door handles and shared equipment are regularly cleaned and disinfected; and
- provide adequate facilities for hand washing with soap and clean water and sufficient paper towels.
Masks and personal protective equipment (PPE)
Workers must wear masks at work. Employers must also require members of the public entering workplaces to wear masks. Employers must provide each employee free of charge with at least two masks to wear while at work or commuting. There must be suitable arrangements for washing and drying masks.
Where a risk assessment indicates, workers must be provided with PPE to provide a greater level protection. Employers must keep up to date with recommendations from agencies such as the National Institute for Communicable diseases and the National Institute for Occupational Health on the appropriate steps to take to prevent transmission in their workplaces and the provision of PPE.
Ventilation
Every workplace must be well ventilated to reduce the viral load.
Small business
The Direction sets out the obligations of businesses with less than 10 employees
Enforcement
Labour inspectors are empowered to promote, monitor and enforce compliance with the Direction. Employers who do not comply with the Direction may be ordered to close their business. In addition, as the failure to comply fully with OHSA is a criminal offence, failure to take the necessary measures to prevent the transmission of COVID 19 may result in criminal prosecutions.
COVID-19 BENEFITS: AMENDED DIRECTIVES
In an effort to clear up some confusion regarding the COVID-19 Temporary Employer/Employee Relief Scheme (TERS) benefits, the Minister of Employment and Labour signed an amended Directive on 16 April and a Correction Notice on 20 April 2020 respectively.
It is now clear that employees who were required to take annual leave during the period that the employer’s business was closed (either completely or partially) may claim the COVID-19 TERS benefit. Annual leave days are therefore regarded as no income days for purposes of the benefit. An employer who receives the benefit on behalf of its employees may retain the amount, but must then credit the employee concerned with the proportionate entitlement to annual leave.
The Correction Notice of 20 April 2020 deleted the reference to section 12 of the Unemployment Insurance Act in clause 3.6 of the Directive. This enables employees who receive remuneration in excess of R17,712 per month and whose employers apply top up to claim the benefit. By way of example:
The employee earns R20,000 per month. In terms of the Directive, benefits are calculated as a percentage (38%-60%) of the employee’s salary. However, the salary at which benefits are calculated is capped at R17,712 per month. The employee in this example would accordingly only be able to qualify for the maximum benefit of R6,730.56.
Assume that the employer pays the employee R10,000 during the period of closure.
The amount paid by the employer and the amount of the benefit would be around R16,730.56. This is less than the employee’s normal remuneration of R20,000 and the employee will accordingly qualify for the benefit.
Assume that the employer pays R18,000. In this case, the employee would only receive R2,000 as the benefit, so as to ensure that the employee does not receive more than 100% of her/his normal remuneration of R20,000.
Assume that the employer pays R20,000, i.e. the employee’s normal remuneration, and that the employee is not required to take annual leave. In this case, the employee will not receive a TERS benefit.
On the wording of the Directive prior to this correction, the comparison was made vis-à-vis the threshold amount of R17,712 (and not the employee’s actual remuneration). Thus, if the employer’s top up and the benefit exceeded the amount of R17,712, the employee would not qualify for a TERS benefit. We are informed that the UIF will automatically re-calculate the benefits of employees whose applications were rejected on this basis.
A revised formula which now incorporates this principle can now be found in the revised calculator. A copy of it can be found at
https://www.businessforsa.org/wp-content/uploads/2020/04/TERS-calculator-final.pdf
Employers whose operations are closed and who are applying the no work no pay principle, or who are requiring their employees to take leave, or who are paying only a portion of their employees’ remuneration, are urged to apply for the COVID-19 TERS benefit on behalf of their employees. In these circumstances, the employees are not eligible for unemployment benefits. This is because their employment has not yet been terminated. Only if they are in fact dismissed, will employees qualify for unemployment benefits.
We are informed that where the application has been incorrectly made for unemployment benefits, the UIF may be approached to correctly classify the benefits as COVID-19 TERS benefits, and in these circumstances, the employee’s credits will be reinstated.
CLOTH MASK DEMAND TO BOOST SOUTH AFRICAN LOCAL MANUFACTURING
ProudlySA Marketplace to link local cloth mask manufacturers to corporate buyers
Corporate buyers/consumers can visit https://www.proudlysa.co.za/covid_19/covid_19.php
Manufacturers wishing to register on the portal can email: bongani@proudlysa.co.za
Proudly SA has launched a dedicated marketplace online portal for cloth masks, which connects corporate buyers with local producers of cloth masks.
Boost for local manufacturing, textile and CMT industries
It is the culmination of the Department of Trade, Industry and Competition (DTIC), SA Clothing and Textile Workers Union (SACTWU) and the Manufacturing Circle’s drive to capacitate, retool and reinvigorate the local clothing and textile manufacturing industry, and to generate opportunities for SMEs, so that they are able to participate in the economy, save and create jobs, and remain resilient in the tough economic times ahead.
Many local manufacturers of clothing and textiles have repurposed their production capability and machines to produce cloth masks. Government is urging cloth mask manufacturers to only use locally produced textiles.
The demand for cloth masks is aligned with Government’s announcement that all medical-grade masks, including N95 respirators and surgical masks, be reserved for frontline health care workers, who are our only line of defence against the virus. The President announced this week that all passengers travelling on public transport will be required to wear a non-medical or cloth mask. It is also recommended that all citizens wear a cloth mask outside of their homes.
Business for South Africa (B4SA) welcomes the DTIC, SACTWU and the Manufacturing Circle’s intervention and leadership, and believes it will not only spur local manufacturing in the textile and CMT industries, but will also provide the country with the volumes of cloth masks needed to protect its citizens and health workers.
This is an incredibly important initiative that will provide real solutions for two of the most pressing challenges we have in South Africa at the moment: ensuring that our citizens, and most importantly, our frontline health care workers are protected against the Covid-19 virus; and to ensure critical sectors in the local market are able to weather the economic storm. As Business for SA, we congratulate the Minister and his team, as well as SACTWU, the Proudly SA team and the Manufacturing Circle, for their work in this regard.
Given our Government’s call-to-action around wearing cloth masks, there may be many companies in South Africa with excess medical-grade PPE, including N95 and surgical masks, gloves, goggles and visors, gowns, aprons and overshoes. These companies can be a force for good, by either diverting or donating their stock. This stock will be used to protect our frontline doctors, nurses and community health care workers. If we protect them, they will be able to protect us.
Companies asked to donate medical grade PPE in national interest
To donate medical-grade PPE: http://covid19manager.co.za
Manufacturers urged to use locally produced textiles
The DTIC has developed guidelines for the production of cloth masks by textile and CMT companies:
BUSINESS FOR SOUTH AFRICA PAPER ON LOGISTICS INDUSTRY
Business for South Africa (B4SA) has written a paper to provide an overview of the logistics industry in South Africa. The aim of the paper is to highlight the importance of the industry during this critical time of national disaster. B4SA agrees with the sentiments expressed by the International Maritime Organization (IMO) stating that “it is vital that Governments facilitate the continuing operation of shipping and ports under their jurisdiction to allow the transport of marine cargoes so that supply chains are not disrupted and to allow the global economy, and society as a whole, to continue to function throughout the pandemic”. The paper outlines the logistics industry in the South Africa and shows the critical role it plays in the economy and across sectors. It highlights risks, complexities and main activities in the industry with specific focus on their application during the COVID-19 pandemic.
The paper can be accessed on the B4SA website at https://www.businessforsa.org/economic/supply-chain-security/ and may be shared broadly across the industry.
OFFICIAL GOVERNMENT REGULATIONS AND GUIDELINES ON COVID-19
All official government regulations and guidelines are available at https://www.gov.za/
OFFICIAL RESOURCES:
NICD website:
COVID-19 information website: https://sacoronavirus.co.za
Coronavirus 24-hour Hotline: 0800 029 999
Coronavirus WhatsApp: 060 012 3456
Business for South Africa fully supports the decisive action taken by President Cyril Ramaphosa and the government to help mitigate the health, labour market and economic impacts of the coronavirus. As organised business, we are actively collaborating with government to use business resources and capacity to support public sector initiatives.
We have mobilised volunteer resources from across South Africa business bodies and organisations, member companies large and small, professional services firms as well as communication specialists, to form focused working groups that are driving a coordinated and proactive programme to mitigate the economic, social and health impacts of COVID-19 on South Africa.
RISK ADJUSTED COVID-19 STRATEGY ON PHASED RESTARTING OF CORE PARTS OF THE ECONOMY
RISK ADJUSTED COVID-19 STRATEGY ON PHASED RESTARTING OF THE ECONOMY: INDUSTRIAL CLASSIFICATION SYSTEM
From 1 May, South Africa will assume Level 4 of the recently announced risk adjusted approach for the measured, phased restarting of certain sectors of the economy.
Level four is a continuation of the lockdown but under a phased return of the economy for certain sectors. A phased return is an absolute imperative as the risk remains large for the spread of the Covid-19, and the effect of overloading the healthcare sector is significant. Adhering to the conditions and procedures for level four is critical.
In determining workplace and sector openings, government considered four factors:
- Risk of transmission and spread
- Expected impact on sector of a full lockdown
- Economic imperatives: GDP, jobs, export earnings
- Promotion of community and well-being – i.e. livelihoods of the vulnerable
Strict social distancing requirements remain in place. In addition to generally applicable health and safety protocols, individual businesses and workplaces must have COVID-19 risk assessments and plans in place, and will be required to conduct worker education on COVID-19 and protection measures. These plans must include:
- Identification and protection of vulnerable employees
- Safe transport of employees
- Screening of employees entering the workplace
- Prevention of viral spread in the workplace
- Hand sanitisers and face masks
- Cleaning of surfaces and shared equipment
- Good ventilation
- Shift arrangement and canteen controls
- Managing sick employees
Thank you to the companies that have forwarded comments, SEIFSA will be submitting a consolidated set of comments to Government for consideration and through BUSA will be engaging government substantively on the proposed opening of sections of the economy during Level 4 of the crisis.
PRESIDENT ANNOUNCES R500BN COVID-19 RELIEF PACKAGE
The President last night outlined various measures to support companies and workers, including a R200-billion loan guarantee scheme to assist enterprises negatively affected by the Covid-19 lockdown, as part of a broader R500-billion social and economic relief package last night.
The package is designed to respond to the devastating economic and social fallout that has accompanied government’s response to the pandemic.
The support for companies and workers forms part of a four-part package that also includes an extraordinary health Budget to strengthen the fight against the virus; a series of measure designed to relieve hunger and social distress and plans for a phased re-opening of the economy.
Full details of the adjustment Budget will be tabled by the Finance Minister in the coming days, while the President will address the nation again on Thursday April 23 to provide additional details regarding the phased re-opening of the economy.
LOAN GUARANTEE SCHEME
A new feature of government’s support for business is a R200-billion loan guarantee scheme, which would be implemented in partnership with South Africa’s major banks, the National Treasury and the South African Reserve Bank to assist enterprises with operational costs, such as salaries, rent and the payment of suppliers.
In the initial phase, companies with a turnover of less than R300-million a year would be eligible and it was anticipated that the scheme would support over 700 000 firms and more than three-million employees through this difficult period.
Also announced was an additional R100-billion for protection and creation of jobs and to create jobs, in addition to the R40-billion set aside for income support payments for workers under the Temporary Employer/Employee Relief Scheme (TERS), which is being administered by the Unemployment Insurance Fund (UIF).
The President also announced that an additional R2-billion would be made available to assist small businesses and spaza shop owners and the taxi industry.
MORE TAX RELIEF
Various additional tax measures were also unveiled, which the President said should provide at least R70-billion in cash-flow relief or direct payments to businesses and individuals.
Among the measures announced were the introduction of a four-month holiday for companies’ skills development levy contributions; the fast-tracking of Value Added Tax refunds; a three-month delay for filing and first payment of carbon tax; and a 10% deduction from taxable income for those who donate to the Solidarity Fund.
To assist a greater number of businesses, the previous turnover threshold for tax deferrals is being increased to R100-million a year, and the proportion of PAYE payment that can be deferred will be increased to 35%.
Businesses with a turnover of more than R100-million a year could apply directly to the South Africa Revenue Service on a case-by-case basis for deferrals of their tax payments.
The other main health and social components of the package unveiled include:
- The reprioritisation of some R130-billion within the current Budget towards health;
- Additional funding of R20-billion for municipalities for the provision of emergency water supply, increased sanitisation of public transport and facilities, and the provision of food and shelter for the homeless;
- An additional R50-billion allocation for various social grants, which would result in the child support grant rising by an additional R300 in May, and by an additional R500 a month from June to October. All other grant beneficiaries would receive an additional R250 a month for the next six months; and
- A special ‘Covid-19 Social Relief of Distress’ grant of R350 a month for the next six months to be paid to individuals who are currently unemployed and do not receive any other form of social grant or UIF payment.
- The President indicated that the package would be funded through a combination of domestic and foreign sources and confirmed that the National Treasury was in talks with various foreign funders, including the World Bank and the International Monetary Fund.
(Acknowledgment and Source: Creamer Engineering News: 22 April 2020)
TAX TREATMENT OF TERS BENEFITS
There has been some uncertainty regarding whether TERS benefits will qualify for an exemption from income tax. The South African Revenue Service (SARS) has confirmed that TERS benefits are payable in terms of the Unemployment Insurance Act and thus exempt from income tax.
It is important to keep in mind that it is the employee, and not the employer, who becomes entitled to the payment of TERS benefits. Accordingly, in those instances where the employer receives the TERS benefits from the Unemployment Insurance Fund (UIF) in order to pay to employees, the employer is merely processing the payment on behalf of the UIF. It does not constitute remuneration paid by the employer. Employers should thus not reflect TERS payments as remuneration on employees’ payslips and it should also not be included in their pay-as-you-earn (PAYE) reporting to SARS. There is no obligation to withhold PAYE from TERS payments paid to employees on behalf of the UIF.
TERS benefits should also not be taken into account as remuneration when considering the calculation of other benefits (such as retirement fund contributions) or when claiming employment tax incentives. Ideally, the payment of TERS benefits should be communicated separately to employees, and should not be included in their payslips.
CLAIMING TERS BENEFITS - LATEST DEVELOPMENTS: 18 APRIL 2020
On 17 April we communication that the MEIBC has concluded a MOA with the UIF but only to act as an intermediary for the channelling of applications for the TERS to the UIF.
We also confirmed that any employer has the option either to claim directly to the UIF or through the Council, whilst highlighting that the Council is encouraging employers who have the capacity, to lodge their claim directly with the UIF.
We also attached the MEIBC Circular and documentation for any employer who may wish to submit a claim via the MEIBC.
In this regard please note that the MEIBC has circulated a revised Industry Circular and requested that you kindly replace the UIF Application Questionnaires circulated yesterday marked “A” and “C” with the revised ones attached.
Note also that paragraph 3.1 of the Industry Circular circulated yesterday has been amended to align with dates in the UIF Application Questionnaires marked “A” and “C” attached
CLAIMING TERS BENEFITS - LATEST DEVELOPMENTS: 17 APRIL 2020
Further to our communication yesterday advising that it was becoming increasingly apparent that the MEIBC would not be able to finalised a MOA with the Parties to the Bargaining Council and recommending that members lodge TERS claim directly with UIF, we can now confirm that although the Bargaining Council has concluded a MOA with the UIF (as opposed to the Parties to the Council) it has done so only to act as an intermediary for the channelling of applications for the TERS to the UIF.
Importantly an employer has the option either to claim directly to the UIF or through the Council. Please note that the Council is encouraging employers who have the capacity, to lodge their claim directly with the UIF.
In the event that a member wishes to submit its claim via the MEIBC, the attached documentation is for your information, together with the MEIBC Circular confirming the above; namely:
- Industry Circular No. 2020/2.
- Original and first directive issued on 25 March 2020.
- The second directive issued on 6 April 2020.
- The third directive issued on 16 April 2020.
- The Memorandum of Agreement (MOA) “C” signed between the Council and the UIF.
- The signed addendum marked Annexure “A” to the MOA “C”.
- UIF Application Questionnaire marked Annexure “A”.
- UIF Application Questionnaire marked Annexure “C”.
- Annexure B – Payroll Information Template.
DEPARTMENT OF EMPLOYMENT AND LABOUR PROVIDES CLARITY TO REVISES TERS UIF PROVISIONS
The Minister of Employment and Labour on 16 April 2020 signed a set of amendments to the directive governing the Temporary Employee/Employer Relief Scheme (TERS) of the Unemployment Insurance Fund. The amendments are designed to bring further clarity to the details of the scheme’s structure.
The revised directive clarifies that an employer may claim benefits in respect of employees who have taken annual leave during this period; and that the employer may retain these amounts, provided that it credits the employee with leave days proportionate to the value of the benefit in the future.
This means that it is not the case, as some legal opinions held, that there is a need to reinstate leave and putting employees on unpaid leave in order to claim.
The directive also urges employers to pay employees the equivalent of their TERS benefits in advance should these not have been received by the employer on their payment date, and retain those amounts when the payment is received.
The department has undertaken that the basis for calculating employees’ benefits will be published on the UIF website soon.
A separate bank account is no longer required to receive TERS monies. Businesses will be able to use their existing bank accounts for this purpose
CLAIMING TERS BENEFITS - LATEST DEVELOPMENTS: 16 APRIL 2020
It is becoming increasingly apparent that the MEIBC will not be able to finalised its MOA with the Parties.
This delay is in no one’s best interest and we would strongly recommend that if you haven’t done so already, you lodge your TERS claim, without waiting for the MEIBC to finalise its affairs, by simply forwarding an email to covid19uifclaims@labour.gov.za (this will trigger an automated message together with templates, annexures, MOA’s and instructions) OR by lodging your TERS application on-line at: https://uifecc.labour.gov.za/covid19/covid19
Some important notes:
- This online process seems more fluid – in that you are prompted to select and complete the correct documents based on what information you input starting with your UIF Reference number. This must be a nine digit number. The UIF reference number must match their format to register. As an example if your UIF Reference is U01234567/0 – You would input as – 012345670 in other words please do not use the U but rather substitute with a 0.
- In the absence of the above MOA C – as your entering directly with the UIF you will select MOA A (Employer/UIF Agreement)
- Your Employee data must be in the correct CSV format.
- You will also be required to provide/upload a Letter of Authority, Letter of Undertaking and the Employers Account information .
- Once you’ve completed the company information for 26 March – 15 April Lockdown period you will need to submit another for 16 May – 30 April. It will have to be two separate submissions.
When and if the MEIBC finalises its role and advises accordingly we will update you immediately.