FAQ - November 21
21 November 2013
Posted by: Author: SAIT Technical
Author: SAIT Technical
1. Learnership agreement - S 12H
A company is registered to
a specific SETA. They are sending employees on an Abet course with an
accredited training provider. However this course is not registered with the
SETA. Is the company entitled to claim the learnership deduction in terms
of Section 12(H)?
"registered learnership agreement” as defined in section 12H(1) comprises
- an agreement registered in accordance
with the Skills Development Act, 1998 and entered into between the learner and
the employer before 1 October 2011; or
- a contract of apprenticeship entered into
before 1 October 2011 registered with the Department of Labour under section 18
of the Manpower Training Act, 1981 if the minimum training period before
undergoing a trade test is more than 12 months.
specific requirement of s 12H(1) is that the learnership must be a "registered
learnership agreement” and if not, then no relief in terms of s 12H will be
2. Problems with efiling credit push payments on
NON business banking clients - Standard bank
Please could you advise if
the Vat payment due date will revert to the 25th of every month if the payment
is made by electronic transfer?
The due date for VAT
returns for both filing and payment is the last business day of the month if
the return is filed via eFiling and
payment is made either via eFiling or EFT on
or before that day.
3. UIF deductions for expatriates
My understanding is that as the expatriates will not be eligible to claim from UIF, based on the fact that they are not "ordinarily resident” in SA, i.e. do not have a SA identity number, they should not be liable for these deductions:
""The Unemployment Insurance Act and Unemployment Insurance Contributions Act apply to all employers and workers, but not to -
* workers working less than 24 hours a month for an employer;
* public servants;
* foreigners working on contract;
* workers who get a monthly State (old age) pension; or
* workers who only earn commission."
I have not been able to obtain a definition from the labour department on what they consider a contract to be, other than an employment contract.
A "contract of employment” is defined in the Basic Conditions of Employment Act in s 29:
"A contract of employment is a reciprocal contract in terms of which an employee places his services at the disposal of another person or organisation, as employer, at a determined or determinable remuneration in such a way that the employer is clothed with authority over the employee and exercises supervision regarding the rendering of the employee’s services"
"an employee and his or her employer, where that employee has entered the Republic for the purpose of carrying out a contract of service, apprenticeship or learnership within the Republic if upon the termination thereof the employer is required by law or by the contract of service, apprenticeship or learnership, as the case may be, or by any other agreement or undertaking, to repatriate that person, or if that person is so required to leave the Republic " (s 4(1)(d) van die UI Contributions Act)." Section 4(1)(d) of the UIC Act provides a detailed explanation of the exemption. It does not simply apply to 'foreigners on a contract'.It applies to an employee, and his employer, who enters the Republic to carry out a contract of service, apprentiship or learnership within the Republic, if upon termination of that service the employer is required, by law or in terms of the contract, to repatriate that employee, or if the person is required to leave the Republic.
A foreign workers employment in the Republic will be governed by domestic labour law.