Labour pains for Dynamos

While the kickoff of the First Division 2007-08 football season has been delayed, one of its affiliates and top Limpopo-based club, Dynamos FC, have already been caught off-side for contravening sections of the Unemployment Insurance Act No 63 of 2001.

While the kickoff of the First Division 2007-08 football season has been delayed, one of its affiliates and top Limpopo-based club, Dynamos FC, have already been caught off-side for contravening sections of the Unemployment Insurance Act No 63 of 2001.

The Act requires of every employer, as soon as he or she commences activities as an employer, to provide the information of all employees, regardless of their earnings, to the Unemployment Insurance Commissioner.

The information contemplated must include the physical and postal address of the business as well as the details of all employees such as names, identification numbers and remuneration.

UIF spokesman Kgomotso Sebetso said: "Any change of details of employees should be forwarded the office of the Unemployment Insurance Commissioner within seven days after the end of each month.

"If you pay your contributions annually, you are expected to submit your declarations once a year.

"This information was used to create and maintain a database of contributors, beneficiaries and employers as required by law. The database was also utilised to determine the payment due to an employee in the event of a claim for benefits (unemployment, illness, maternity, adoption and dependants)."

Sebetso explained that failure to comply with these provisions of the Act constituted an offence which was punishable in terms of this Act. The offender shall be liable to a fine or imprisonment, or to both.

"However, in contravention of the law our labour inspectors in the Dynamos case found that the employer has failed to declare his employees with the Unemployment Insurance Commissioner since 2003. It has also been found that the employer is in arrears with his UIF contributions," he said.

"There is also evidence that the employer is deducting one percent of the employees' salary as required by the law, but the money never reaches the UIF."

Despite several attempts to recover the UIF contributions from the club, management failed to resolve the impasse, leaving the Department of Labour with no option but to take legal action.

The department, with the help of the National Prosecuting Authority, served Dynamos with summons to appear in court on September 14.

Sebetso urged all workers to report their employers if they suspected or have evidence that they had not been registered with the UIF. - Sowetan

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