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Labour Programme

Labour Activation Programme: Re-Integrating UIF Beneficiaries into the Job Market

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The Labour Activation Programme is a strategic initiative under the Department of Employment and Labour, designed to provide opportunities and support for unemployed individuals, particularly those who are beneficiaries of the Unemployment Insurance Fund (UIF).

This comprehensive programme aims to address unemployment challenges by offering structured training, financial assistance, and productivity support to both individuals and businesses in South Africa.

Background of the Labour Activation Programme

The Labour Activation Programme was established in response to the high unemployment rate and the need to reintegrate UIF beneficiaries back into the labour market. The Unemployment Insurance Fund (UIF) was created under the Unemployment Insurance Act, 63 of 2001, as a public entity to provide short-term financial relief during periods of unemployment, illness, maternity, and adoption. Despite these provisions, many UIF beneficiaries remain unemployed for extended periods due to a lack of necessary skills and experience.

The Labour Activation Programme addresses this gap by providing various skills development and employment opportunities that align with the demands of the labour market. In 2016, the Unemployment Insurance Amendment Act empowered the Labour Activation Programme to provide targeted funding for training and employment retention schemes, thereby enhancing the capacity of UIF beneficiaries to secure employment.

Read More: UIF Partners with Government to Create Over 234 000 Jobs

Key Objectives of the Labour Activation Programme

The Labour Activation Programme focuses on four main objectives to support UIF beneficiaries:

  1. Partnerships to Implement Job Creation Initiatives: The programme collaborates with multiple stakeholders, including businesses and training providers, to create job opportunities for beneficiaries.
  2. Training of the Unemployed (TOU): The Labour Activation Programme offers structured training and learnership opportunities that enable beneficiaries to gain market-relevant skills.
  3. Temporary Employee-Employer Relief Scheme (TERS): This scheme provides financial relief to distressed companies to help them retain employees during tough economic times.
  4. Funding Productivity South Africa for Business Turnaround and Recovery: This initiative helps improve the productivity and profitability of distressed businesses, ensuring job preservation.

By focusing on these areas, the Labour Activation Programme ensures that UIF beneficiaries are not just receiving temporary financial relief but are being equipped to secure sustainable employment.

Targeted Beneficiaries

The primary beneficiaries of the Labour Activation Programme are UIF contributors who are currently unemployed. However, the programme also extends its support to a certain percentage of non-contributors to promote inclusivity and broader community upliftment.

The programme’s recruitment and participation criteria include:

  • UIF Contributors: At least 70% of the programme’s participants must be UIF contributors.
  • Non-Contributors: A maximum of 30% of participants can be non-contributors, ensuring that the Labour Activation Programme is accessible to a wider range of job seekers.

Potential participants must register as work-seekers through the Public Employment Service’s (PES) Employment Services of South Africa (ESSA) online system or at their nearest Labour Centre.

Key Components of the Labour Activation Programme

The Labour Activation Programme is structured around various components that address the specific needs of its beneficiaries. These components include:

  • Training of the Unemployed (TOU) / Employability: The TOU initiative under the Programme offers skills development training to unemployed individuals. The programme has been restructured to ensure that all training opportunities lead to employment. Each proposal for training must include a commitment from employers to absorb beneficiaries post-training. This component is critical to the success of the Labour Activation Programme as it ensures that the skills provided align with the current market demands.
  • Temporary Employee-Employer Relief Scheme (TERS): The TERS component of the Programme provides financial support to employees of distressed companies. The scheme funds up to 75% of an employee’s basic salary, up to a maximum period of 12 months. This initiative is critical in preventing job losses and supporting companies during challenging economic times.
  • Eligibility for TERS:
    • The company must be registered with the UIF and must have declared the employees they wish to place on the scheme.
    • The company must conclude an agreement with its workers stating that no retrenchments will occur during the period of financial assistance.
  • Business Turnaround and Recovery Programme: The Labour Activation Programme also provides funding to Productivity South Africa for the implementation of Business Turnaround and Recovery Programmes. This initiative helps companies improve their operational efficiency, profitability, and sustainability, thereby preserving jobs. The Labour Activation Programme encourages distressed companies to participate in the BT&R programme by reaching out to Productivity South Africa through their official contact channels.

Stipend Rates for Participants

  • Skills Programmes (less than 1 year): R 1,050 per month.
  • Learnerships (1–2 years): R 2,000 per month.
  • Apprenticeships (3 years): R 2,555 per month.

Recruitment Process for the UIF Labour Activation Programme

The Labour Activation Programme follows a detailed and transparent recruitment process to ensure the fair selection of participants and partners. The steps include:

  1. Request for Proposals: The Department of Employment and Labour advertises opportunities for potential partners to submit job creation proposals.
  2. Proposal Evaluation: Proposals are evaluated by the Labour Activation Programmes’ National Adjudication Committee (LNAC) based on established criteria.
  3. Approval and Implementation: Approved partners can start the recruitment of learners. Recruitment is primarily conducted through the ESSA system, but partners may also recruit externally if necessary.

Impact and Benefits of the Labour Activation Programme

The Programme has had a significant impact on the South African labour market by:

  • Providing Employment Opportunities: The programme ensures that beneficiaries are equipped with skills that are in demand, increasing their chances of securing employment.
  • Supporting Business Sustainability: Through initiatives like TERS and BT&R, the Programme provides vital support to companies, preventing job losses and ensuring economic stability.
  • Economic Empowerment: By focusing on skills development and job creation, the programme plays a key role in economic empowerment and poverty alleviation.

How to Get Involved

Individuals and companies interested in participating in the UIF Labour Activation Programme can reach out to the Department of Employment and Labour through the following contacts:

The Labour Activation Programme is a robust initiative that provides comprehensive support to UIF beneficiaries and South African businesses. By focusing on skills development, job creation, and business support, the programme plays a critical role in reducing unemployment and ensuring economic stability in the country.

Through its various components, the Labour Activation Programme continues to empower individuals and uplift communities, contributing to a stronger and more resilient workforce.

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