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Pensioners in employment will as from tomorrow, Thursday, 1 January 2004, no longer be required to contribute to the Unemployment Insurance Fund (UIF).

Minister of Labour, Membathisi Mdladlana, announced in Cape Town today that in terms of the Unemployment Insurance Amendment Act people in receipt of State Social Pension would no longer be required by law to contribute to the UIF.

This comes after President Thabo Mbeki formally signed the Unemployed Insurance Amendment Act last month.

Following its signing into law, Minister Mdladlana announced that the promulgation of the Act would be staggered. He said two dates were being targeted for the provisions of the Amendment Act to come into force.

Today the Minister announced the provisions that would come into effect this week. He said those provisions included the establishment of Regional Appeals Committees and the exclusion from coverage of pensioners as well as people who enter into new learnerships with employers in terms of Section 1(1) of the Skills Development Act.

"As government we are encouraging employers to take on new learners hence we have not included them into the provision of the UIF," said the Minister.

"In June government, business, organised labour and community organisations agreed at the National Economic Development and Labour Council (Nedlac) that by May 2004 72 000 unemployed youths will be taken into employment and skills development programmes. We are committed to that target," said Minister Mdladlana.

From tomorrow the Commission for Conciliation, Mediation and Arbitration (CCMA) will no longer handle disputes arising out of the decisions of UIF Claim Officers.

"We are making our services more convenient by bringing dispute resolutions closer to our people," Minister Mdladlana said.

He further indicated that the Regional Appeals Committees established in all the provinces would in future handle all disputes arising out of the decisions of the Claim Officers. The National Appeals Committee in Pretoria would now be the final adjudicator.

"In the 2002/03 financial year the UIF Board dealt with 6 789 appeals. We hope that with the establishment of the regional appeals committees disputes will be dealt with speedily," the Minister added.

The Minister said the other provisions of the Amendment Act, which included the recognition of the multiple employments of domestic workers, would only come into force on 1 April 2004.

Meanwhile Minister Mdladlana today also revealed the final figures on domestic registration for the year 2003.

"Our statistics reveal that between May and December 582 697 domestic employers have registered with the UIF. I am encouraged by the overwhelming response by employers. It shows that South African employers care for their domestic workers."

It has never happened anywhere in the world that so many people have registered their workers in less that eight months," said the Minister.

He concluded that the highest number of domestic workers had been registered in Gauteng, followed by KwaZulu-Natal.

Enquiries: Snuki Zikalala, 082 809 3195

Issued by: Department of Labour

31 December 2003