UPDATE ON NEGOTIATED LOCKDOWN ARRANGEMENTS MADE WITH AND BY THE BARGAINING COUNCIL

PLEASE NOTE THAT THESE PROVISIONS ARE THE LATEST STATE OF AFFAIRS IN RELATION TO YOUR OBLIGATIONS AND ANY CONTRARY COMMUNICATION IN RELATION TO THESE PROVISIONS IS HEREBY REPLACED:

8 APRIL 2020

1. SICK BENEFIT FUND

(a) Employers and employees who are not working because of the lockdown, in all the regions, are not required to make any contributions towards the sick benefit fund premiums during the lockdown period.

(b) During the period of the lockdown, the sick benefit fund will also not make any payments towards sick pay claims as the employees would not be working.

2. BARGAINING COUNCIL LEVY

(a) This levy is not payable by all employers whose employees are not working during the lockdown period. If you are working, you pay in line with the provisions of the collective agreement.

3. ECA LEVIES

(a) If your employees are not able to work their normal hours for the period of the lockdown, you are given a contribution holiday during the lockdown.

4. REGION A&B RETIREMENT FUNDS

(a) These funds have decided that the employers and the employees are exempted from making contributions towards the savings portion of the pension and provident funds for the period of the lockdown and the fund will pay 100% contributions towards fund expenses and risk for the month of April 2020.

5. REGION D RETIREMENT FUNDS

(a) The Region D Board of Trustees has decided to give their members a contribution holiday for risk and savings towards retirement. The fund will carry the obligations for risk during the lockdown up to a maximum of three months.

Website: www.ecasa.co.za Enquiries: info@ecasa.co.za

6. REGION C RETIREMENT FUND

(a) These funds have not taken any decision regarding this period and we pray that they take a decision soon because the bargaining council needs to issue the levy return soon and the industry needs certainty.

7. REGION C PHI AND FUNERAL

(a) The employers are expected to make contributions towards risk including for the period of the lockdown. Council does not have resources to meet this obligation on behalf of the employers and the FSCA wants these to be paid so as members remain covered.

8. UIF CLAIMS

(a) Council is anticipating an agreement with the UIF to pay employers on behalf of the UIF. In anticipation of this agreement, certain information is required by council per the UIF requirements. Please submit this information per the council circular.

THIS CIRCULAR REPLACES ALL OTHER CIRCULARS DISTRIBUTED TO INDUSTRY SHOULD SUCH CIRCULARS CONTAIN INFORMATION CONTRARY TO THE INFORMATION CONTAINED HEREIN.

ISSUED BY:      MOGOMOTSI MARK MFIKOE

NATIONAL DIRECTOR,

ECA(SA)

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