Page 5 - KZN Business Sense - Vol6 No2 -eBook

COVID-19 RELIEF FUNDS

www.sacoronavirus.co.za gov.za) and South African Revenue registered with the SARS, the
Service (SARS) (www.sars.gov.za) Unemployment Insurance
websites. Fund, and the Companies and
n response to the Covid-19 Intellectual Property Commission
pandemic, the South African SARS to accelerate the payment (CIPC).
IGovernment declared a of employment tax incentive
National State of Disaster on 15 reimbursements from twice a year Tourism
March 2020. The findings of the to monthly to get cash into the
pre-lockdown Covid-19 National hands of compliant employers as R200 million made available to
Small Business Survey, which were soon as possible. assist SMMEs (Annual turnover
released by the National Small must not exceed R2.5 million) in PROMOTION: WHEN
Business Chamber (NSBC) shows Companies can claim back up to the hospitality and tourism sector
deep economic challenges for small R1 500 a month per employee who who are under stress due to the WOULD A FAILURE
businesses. However, a variety earns less than R6 500 (for those new travel restrictions. 70% of
of funds and relief measures younger than 30), and R500 for the relief will be to Black owned
are available to businesses (and those 30 and older. businesses with a bias towards TO PROMOTE AN
individuals) in various sectors. Tax compliant businesses with a rural areas.
This list is by no means exhaustive. EMPLOYEE BE UNFAIR?
turnover of R50 million or less will Website: www.tourism.gov.za
be allowed to delay 20% of their
SMME Relief Finance Scheme IDC Funding
employees’ tax liabilities over the He was alive to the need for
The Debt Relief Finance Scheme next four months and a portion of The Industrial Development Patrick Deale, Labour deference to an employer’s
for existing businesses in distress their provisional corporate income Corporation (IDC) has allocated lawyer & mediator discretion regarding promotions,
due to the COVID-19 pandemic. tax payments without penalties or billions in emergency funding but equally – that an employer’s
The relief will be for a period of six interest over the next six months. to help manufacturers with he Labour decision not to promote had to
months, from 1 April 2020. Soft- working capital, as well as for T Appeal be taken fairly and reasonably.
loan funding will assist distressed Instead of paying 50% of their companies in agriculture, tourism, The LC was not persuaded that
small companies with funding. expected tax bill after six months energy, and vehicle components Court (LAC)
into the tax year, and settling the manufacturing. considered such the decision of the arbitrator was
The Business Growth/ full amount at the end of the tax a case in the unreasonable (the review test).
Resilience Facility is aimed at year, provisional taxpayers only Email: covid@idec.co.za Department The LAC confirmed that courts
small companies which can take have to pay 15% after six months, Website: www.idc.co.za of Rural and arbitrators should be reluctant
advantage of supply opportunities and another 50% by the end of the Development. to interfere with an employer’s
resulting from the coronavirus tax year. Then, by 30 September Banks A manager decision to refuse promotion. But
pandemic or a shortage of goods in 2021, they need to pay the balance. South Africa’s banks have referred to as “M” had been they may interfere if –
the local market. announced individual measures to doing the job in an acting
Customs’ Duties assist clients, with some offering ■ There is evidence that the
Website: www.smmesa.gov.za capacity for four years. The employer acted on the basis of
Rebates on customs duty three-month payment holidays qualification requirement for the some unreasonable, irrelevant
Unemployment Insurance Fund and VAT concessions on the on home loans, vehicle finance, post was advertised in 2011 as or invidious consideration; or
As part of the special Temporary importation of “essential goods” as personal loans, and credit cards. ‘B.Sc Agriculture or equivalent ■ The decision was arbitrary,
Employee/Employer Relief Scheme defined in the regulations issued qualification in Agricultural capricious or unfair; or
(TERS), administered by the under the Disaster Management The Oppenheimer Family Economics or Economics’. M ■ The employer failed to apply its
Unemployment Insurance Fund Act are available. The R1 billion made available by had the qualification for this mind to the promotion or acted
(UIF), money will be paid out to the Oppenheimer family will be requirement.
A list of the qualifying goods
workers in distressed companies. is available on the International paid out directly to employees of The advertisement was in bad faith; or
The amounts paid will be a Trade Administration small, medium and micro-sized withdrawn and advertised again ■ Where there is no rational
percentage of an employee’s salary, Commission (ITAC). However, in businesses as interest-free loans. in July 2011. The selection criteria relationship between the
according to a legislated sliding Employees themselves will not be were exactly the same – except decision not to promote, the
scale from 38% (for the highest order to claim customs duty relief liable to pay the money back, but for the degree requirement purpose of the promotion and
under item 412.11, the importer
earners) to 60% (for the lowest will need to obtain an import companies will be. The typical which was changed to – “B.Sc the information upon which the
earners). The maximum benefit is certificate (permit) from ITAC. loan amount per employee is in Agricultural Economics/ decision is based
R6 730 a month. expected to be around R750/week, Development/Economics/ ■ The LAC found that the
Website: www.itac.org.za for a period of 15 weeks. Currently, Statistics/Marketing’. M did not arbitrator’s reasoning in
Email: Covid19ters@labour.gov.za the money is available to clients have this B.Sc qualification so he his award showed that he fully
Website: www.labour.co.za Spaza Shops of Absa, First National Bank, was not considered. The MEC understood these principles
Tax Measures Government’s new support Nedbank, and Standard Bank, and then suspended all recruitment and that the relief granted
scheme for spaza shops will give limited to businesses which were and selection processes until by the arbitrator was entirely
The draft explanatory notes them funding to buy stock and “financially sustainable” before the further notice before an reasonable.
regarding the COVID-19 tax assure bulk-buying discounts coronavirus crisis. appointment was made.
measures can be found on the at approved wholesalers. But TIP: The principles described
National Treasury (www.treasury. the spaza shops need to be Website: www.opp-gen.com  M referred a dispute to the by the LAC will serve as useful
bargaining council. He claimed guidelines for employers to follow
that the Department’s failure when making decisions about
to promote him to the post for promotions. They essentially
which he was suitably qualified provide an insight of how the
was an unfair labour practice. LC would assess whether an
The arbitrator concluded arbitrator made a reasonable
that the failure to promote M decision in a case involving
constituted an unfair labour the fairness or otherwise of an
practice. He found that M was employer’s decision to promote or
the only candidate eligible for not to promote an individual.
appointment and one who had
demonstrated competence Department of Rural Development
and exemplary performance and Agrarian Reform v General Public
in the post. For these reasons, Service Sectoral Bargaining Council and
the arbitrator placed M in the Others(PA3/18) [2020]
position. The Department took LAC 4 (6 January 2020) Source: Worklaw
the award on review to the Labour Newsletter February 2020

Court (LC). Offices in KZN and Johannesburg
C: 083 375 8771
The LC found that the arbitrator
properly considered relevant E: patrick@deale.co.za
Skype: patrick.deale
issues that merited the promotion. W: www.deale.co.za

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