Unemployment Insurance Act - South Africa

Unemployment Insurance Act, 2001

The purpose of this Act is to establish an unemployment insurance fund to which employers and employees contribute and from which employees who become unemployed and their beneficiaries are entitled to benefits. The Act applies to all employers and employees, other than employees employed for less than 24 hours per month, those being paid under a learnership agreement, government employers and employees, and persons entering South Africa to complete an employment contract.

Under s. 12, a contributor or dependent is entitled to unemployment, illness, maternity, adoption and dependent’s benefits. A contributor’s right to these benefits accrues at the rate of one day’s benefit for every six days worked, and the amount cannot be reduced by the payment of maternity benefits.

Where the contributor receives maternity benefits, s. 24 mandates that a contributor who is pregnant is entitled to maternity benefits for any period of pregnancy or delivery and the period thereafter, as long as the application for benefits is made in accordance with the Act. The contributor must be paid the difference between any maternity benefit paid to that contributor under any other law, collective agreement or employment contract, and the maximum benefit payable under this Act. The maternity benefit may not exceed the remuneration the contributor would have received had she not been on maternity leave. Further, the maximum length of maternity leave is 17.32 weeks. If the contributor has a miscarriage during the third trimester, or bears a stillborn child, the maximum length of maternity leave is six weeks following the miscarriage or stillbirth.

To receive these benefits, the contributor must apply to the Department of Labour at least eight weeks before childbirth, though the Commissioner of the Department of Labour can, in his discretion, accept applications within eight of weeks of childbirth, or extend the application period to six months after childbirth.

Under s. 27, only one contributor of the adopting partied (couple who are adopting a child) is entitled to adoption benefits, and only if the child has been adopted in accordance with the Child Care Act, 1983, the period during which the contributor was not working was spent caring for the child, the adopted child is under age two, and the application for adoption benefits is in accordance with this Act. The contributor is entitled to benefits in the amount of the difference between any adoption benefit received under another law, collective agreement or employment contract, and the maximum benefit payable under this Act. The benefit may not exceed the remuneration the contributor would have received had he or she been working.

To receive adoption benefits, the contributor must apply to the Department of Labour within six months of the order for adoption, but the Commissioner may, in his discretion, accept application after this period.