My employer deducts UIF but doesn’t pay it over, gives no payslips or contracts. What can I do?

The long answer

These are very serious complaints. Let’s take them one by one:

1. It is illegal for the employer to deduct UIF and not pay it over to UIF. If found guilty of this, the employer can be fined or imprisoned for up to two years. 

The total amount for UIF is 2% of the worker’s salary each month: 1% is paid by the employer and the other 1% can be deducted from the worker’s wages to be paid over to UIF. As you say, if the employer does not pay the deductions to UIF, the employees will not be able to draw unemployment benefits if they are dismissed, nor maternity or death benefits from UIF.  

2. The law that lays down the rights of all workers in South Africa is the Basic Conditions of Employment Act (BCEA). 

The BCEA says that employers must give a payslip to employees with each payment. The payslip must have the employer’s name as well as the employee’s name, the period for which you are being paid, wages, any deductions made, hours worked and overtime pay.

3. Although the BCEA does not lay down that an employer must give a formal, written contract, section 29 of the BCEA does require employers to give a written statement of their employment details by the first day of employment. This statement must include details like the employer and employee's names and addresses, the job description, hours of work, pay rate, leave entitlements, and notice periods. (But an employer and employee can still have a legally binding agreement even if it's not in writing.)

You should meet with the other employees and discuss the following options:

• You can contact the UIF Call Centre (0800 843 843) to ask them to check whether your UIF deductions are being paid, as you suspect that they are not being paid over.

• You can report the employer for not paying UIF by contacting the Department of Employment and Labour (DEL) at 0860 666 348 or WhatsApp 0860 004 004. You can also speak to the DEL by calling them at 080 003 0007 or at 012 309 4000.

In April 2025, the Parliamentary Monitoring Group reported that DEL Labour Inspectors could audit the employer's payroll and demand unpaid invoices. Employers may be brought before the Labour Court for noncompliance.

They said that the Inspection and Enforcement Services (IES) Standard Operating Procedure allows an employer/company to be inspected once every six months. If an employee lodges a complaint about suspicion of UIF non-payment, Employer Audit Services may inspect the employer immediately.

The Labour Inspectors at the DEL can also issue written undertakings or orders to comply, and the Labour Court can impose fines or award compensation. 

• If you fear losing your jobs for speaking up, you can report the non-payment of your UIF deductions to the Commission for Conciliation, Mediation and Arbitration (CCMA). The CCMA can help protect you from being victimised. You can email: [email protected].

• Clearly, if the employer does not bother to reply to questions about these matters, there is no union or organisation that represents the employees. It is very important in a situation like this for the employees to meet and decide jointly on what the plan is to deal with it. You should all agree on the action to be taken and remember that an employer will always try to use the fear of losing your job to intimidate and divide you. 

After you have all discussed this, you may agree to ask for a meeting with the employer first to give them a chance to put things right before you report them, if you think that would work. But you should be prepared to follow through and not be put off by threats, because what the employer is doing is illegal. 

Wishing you the best,
Athalie