Abstract
The contribution critically reflects on the proposed amendments to the Unemployment Insurance Act Act 63 of 2001 (the UIA / the Act), introduced via the provisions of the Unemployment Insurance Amendment Bill of 2015 (B25-2015). Several shortcomings and deficiencies are addressed and improvements introduced by the proposed amending legislation, including the extension of coverage to a wider range of beneficiaries, the extension of the period of benefits (to a maximum of 365 days), the increase of the rate of maternity benefits of a (female) contributor's earnings, the adjustment of the accrual rate of a contributor's duration of benefits from 1 day for every 6 days of employment to 1 day for every 5 days of employment, and some attempt to provide for employment retention and the re-entry of unemployed contributors into the labour market.
 And yet, despite these important contributions to the development of unemployment insurance in South Africa, several matters appearing from the Bill point towards inconsistent, inadequate and inappropriate treatment of core elements of the unemployment insurance system. Recommendations have been made to address these matters, which among others relate to:
 
 The insufficient alignment of the UIA with ILO, UN and SADC standards in key areas of concern;
 Unclear or absent provisions in relation to the coverage and/or application of the UIA in relation to public servants, migrant workers, and the self- and informally employed;
 Inadequate provision for employment promotion, the prevention, combating and reduction of unemployment, and reintegration into employment;
 Inappropriate provisions relating to benefit rates and periods, among others concerning the Minister's power to set/amend the Income Replacement Rate and to vary the benefit period by regulation;
 Inconsistent and discriminatory provisions requiring a 13-week qualifying period for accessing maternity benefits;
 Inappropriate provisions regarding dependants' benefits, including the strengthening of the existing claims hierarchy in favour of spouses and life partners at the expense of children;
 The absence of an independent appeal institution; and
 Poorly formulated provisions, with evident discord between the provisions of the Bill and the Memorandum settings out its objectives.
 
Highlights
The need to amend the Unemployment Insurance Act, 2001The publication of proposed amendments to the Unemployment Insurance Act 63 of 2001, including the tabling of an Unemployment Insurance Amendment Bill (B25-2015) for public consideration, is a welcome occurrence
Building on the Universal Declaration of Human Rights of 1948, which grants to everyone the right to social security7 and the "right to security in the event of ... unemployment", the UN's 1966 International Covenant on Economic, Social and Cultural Rights (ICESCR) provides that "The State Parties to the present Covenant recognize the right of everyone to social security, including social insurance" as being of "central importance in guaranteeing human dignity for all persons when they are faced with circumstances that deprive them of their capacity to fully realize their Covenant rights"
Recent social security legislation developed by the International Labour Organisation (ILO) for Swaziland and Lesotho respectively contains provisions that stipulate that special measures to accommodate the self- and informally employed need to be taken
Summary
The publication of proposed amendments to the Unemployment Insurance Act 63 of 2001 (the UIA / the Act), including the tabling of an Unemployment Insurance Amendment Bill (B25-2015) (the Bill) for public consideration, is a welcome occurrence. The extension of coverage (through the amendment of section 3(1)), the adjustment of the accrual rate of a contributor's entitlement to unemployment insurance benefits, the extension of the maximum duration of benefits (in terms of an amendment to section 13(3)(a)), the focus on matters relating to maternity benefits and the intention to use the Fund for preventing unemployment and re-integration into employment (via an expanded section 5) are all examples of noteworthy interventions Notwithstanding these advancements, there are various crucial matters of substance that require further revision, in some instances due solely to the manner in which the proposed amendments have been formulated. Each of these issues is considered in turn in this note, which essentially reflects on the proposed changes to the UIA and their shortcomings, including in the context of international standards.
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