Due to Covid-19 and the lockdown many businesses have embarked upon extensive retrenchments or the suspension of employment agreements until the businesses are back to full strength. In practice this means literally thousands of businesses in the country are employing less than 50% of their normal employment complement.
A rather nasty situation has arisen in that the Compensation Fund will not just supply certificates of compliance for those businesses. The department will earmark every business for an audit when they see less than 50% of their staff are reported.
No certificate of compliance will be issued until the audit has been completed. These audits can take months. In the interim businesses can’t do any business until they have their certificate of compliance. This shocking situation is crippling hundreds of small businesses.
Michael Bagraim, MP, DA deputy employment & labour spokesperson
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