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An Employed Person Claiming UIF

Question

Due to the lockdown and its effect on the economy, government is granting relief via the Uif fund to certain sectors of the country. 

An accountant works from home. He works for himself. He has been working from home for the past 2 years and has lots of clients. During lockdown, his business was still functioning as normal. He has one staff member working for him. He has all along been paying towards the Uif.   

 

The relief via the Uif is primarily meant for and it is in essence because people could not work and earn their normal income. This reason is not found in the case of the accountant.  However, it is a known fact, that the monies that he is paying towards the Uif will never ever be retrieved.  There is no way in which, he will get back that money. Is it correct for him to apply for relief from the Uif fund? 

Answer

The U.I.F is a fund primarily established to assist unemployed people. During the lockdown period, many people were left temporarily unemployed due to the lockdown, hence leaving many people in a financial crisis and difficulty. The relief granted by the government was to assist such individuals; hence companies that were unable to remunerate employees were permitted to claim from the U.I.F funds. This relief was not intended for employees that were employed and earning during the lockdown period. Therefore, it is incorrect for the said accountant to claim from the U.I.F. funds.

Checked and Approved By:

Mufti Muhammed Saeed Motara Saheb D.B.

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