Small business disregard UIF: Govt

By Drum Digital
02 August 2012

Small companies routinely disregard the Unemployment Insurance Fund (UIF), the Eastern Cape labour department said on Thursday.

"We are left with no option but to enforce the UIF Act vigorously as the levels of [non]-compliance are alarming," said departmental UIF spokesman Thabo Madikazi.

"We have engaged with employers and educated them on the UIF Act. Our inspectors will visit them again and will leave no stone unturned... to enforce the law."

The department's UIF campaign hopes to persuade companies to register with the fund and pay monthly contributions.

Door-to-door visits in Mdantsane were followed by formal sessions in East London, Fort Beaufort, King William's Town and Butterworth.

At least 218 companies in these areas had been visited in the past 10 days, with 146 of these unregistered.

Only 62 companies were complying with the act, while 10 refused to co-operate with officials.

Employers in the province's eastern region, including Tsolo, Mount Fletcher, and Mthatha, would be engaged this week.

"Out of at least 92 companies that have been visited (in this region), 69 were found not to be complying, 11 companies complying and 12 companies would not avail information, citing that the boss is away," the department said.

Mthatha employers would be visited on Thursday afternoon. Visits to Cradock and Queenstown would end this week.

The department would close the campaign with employer visits and formal discussions in the Humansdorp, Port Elizabeth and Grahamstown areas.

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