Every business, no matter how strong, could use a little financial relief from time to time, especially in these unpredictable economic conditions. That’s why I’m excited to share the news of a massive budget increase for the Temporary Employer-Employee Relief Scheme (TERS), which could be a lifeline for many.
The Department of Employment and Labour has significantly ramped up its TERS budget, from R400 million to a whopping R2.4 billion for the current financial year. This is fantastic news for companies feeling the strain, as it provides a real chance to avoid layoffs and keep the business afloat while they work on getting back on track.
TERS is designed to help businesses in distress by offering financial support for up to 12 months, helping them retain employees during tough times. As a business owner, the thought of losing valuable team members when times are hard can be stressful, but with TERS, employers can focus on turning things around without the added pressure of salary costs. Instead, they only need to cover social contributions like provident funds and medical aid.
The Productivity SA team is also on hand to offer strategic solutions to help businesses through these challenging periods. I think it’s a brilliant initiative, and I’d urge any business experiencing financial difficulties to look into this as soon as they start seeing signs of trouble.
Employment and Labour Minister Nomakhosazana Meth highlighted that TERS applications can be made through the Commission for Conciliation, Mediation and Arbitration (CCMA), and the entire process is free—no application or administration fees, which is a relief! A single adjudication committee evaluates applications, ensuring fairness by considering multiple indicators, like revenue declines.
But why this huge budget increase? South Africa’s economy continues to battle headwinds, and unfortunately, this has led to widespread job losses. Although TERS interventions saved nearly 15,000 jobs in the last financial year, more than 22,500 employees still faced retrenchment. It’s clear that something needed to be done to help stabilise these sectors and keep businesses open.
As the Minister pointed out, increasing the TERS budget is a proactive response to the economic challenges we’re facing. The aim is to protect jobs and prevent further retrenchments, which I think is a huge win for both employees and employers. It’s all about making sure businesses remain sustainable and can weather these storms.
The mining, manufacturing, and telecommunications sectors have seen some of the highest job losses, with over 5,000 layoffs in mining alone. It’s tough to see industries that form the backbone of our economy struggling like this, but TERS offers a way to help stabilise these sectors.
I’ve been particularly impressed by the wide range of industries that have already benefited from TERS. Whether it’s hospitality, manufacturing, retail, or transportation, this scheme has helped preserve jobs and kept companies going during difficult times.
If you’re a business owner looking to apply, you’ll need to submit documents like audited financial statements and a business case outlining the reasons for your financial distress. It’s worth the effort, especially with this new budget boost making it even more likely that businesses will receive the support they need.
I believe TERS is a vital part of keeping our economy resilient. It not only helps businesses survive tough periods but also ensures that employees, the heart of any company, are protected. Let’s make sure more businesses take advantage of this lifeline, so we can all contribute to rebuilding a stronger, more stable South African economy.