Why My UIF Claims Get Rejected?

By Craig Will •  6 min read
UIF

As the only source of financial recourse that the newly unemployed have, the UIF receives a lot of emails and queries from disgruntled claimants.

The fund received an average of 7 900 emails per month. 

With 3,104 email disputes and queries being resolved and 26 476 being dispatched back to the office for referral to the various business units within the Compensation Fund, so they could be resolved accordingly.

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Another challenge faced by the Compensation Fund is that up to 70,000 of the emails they received were junk mail and were rejected on the spot.

This is but one of the many reasons the UIF can reject a claim, and in this article, we will explore other causes that can lead to your claims being rejected by the fund.

What does it mean if your UIF claim is rejected?

If your Unemployment Insurance Fund (UIF) claim is rejected, it means that UIF has determined that you do not meet the eligibility requirements to receive benefits.

In a brief to the media in 2021, Assistant Director of Operations Simenyiwe Mchunu relayed some of the progress made by the fund as well as its reasons for rejecting claims.

He said more than R15 billion was disbursed nationally in more than three million payments in normal UIF benefits between April and September.

With another R2 billion paid out in KZN in over 490 000 payments.

More than 400 000 claims were processed and finalized, and 444,609 were created.

“The rejection of claims mostly happens because employers do not register their employees and declare them to be working under them.

We can only know which employer an employee works for after their contract has been terminated.

We cannot process the claim of an unregistered and undeclared employee until an employer submits a declaration stating how much the employee is owed in contributions,” he said.

Other delays, according to Mchunu, were due to the large-scale shedding of jobs, clients submitting continuation forms, large numbers of UIF inquiries, and application backlogs.

He said people should check their status while employed by, among others, using their USSD code or app.

What disqualifies you from getting UIF?

The Unemployment Insurance Fund (UIF) is a government program in South Africa that provides temporary financial relief to workers who have lost their jobs or had their working hours reduced.

In order to qualify for UIF, individuals must meet certain eligibility criteria.

Some of the factors that may disqualify an individual from receiving UIF benefits include the following:

Returning to work whilst receiving benefits and failing to inform the fund, which is also constituted as fraud.

Submitting fraudulent applications for benefits and making false accusations in your claims.

Being a worker who earns a salary based on commissions only.

Should a worker resigns or abscond from a job, they will be disqualified from benefits unless they can prove a constructive dismissal case at the CCMA.

Applying for benefits 12 months after the termination of your services as an employee at your job.

In the case of maternity benefits, making a claim after the child’s birth and claiming for benefits if you’ve been employed for less than 13 weeks.

How do I appeal a declined UIF claim?
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If your Unemployment Insurance Fund (UIF) claim has been declined, you may have the option to appeal the decision.

Here is a general outline of the steps you can take to appeal a declined UIF claim:

Review the reason for the claim decline: The first step in appealing a declined UIF claim is to understand why the claim was declined.

The UIF should provide you with a written explanation of the reason for the decline.

Gather supporting documentation: In order to appeal the decision, you will need to provide evidence to support your claim.

This may include proof of employment, pay slips, and any other relevant documentation.

Submit the appeal: To appeal the decision, you must fill out an appeal form, which can be obtained from a labour centre or online at: ufiling.labour.gov.za.

You will need to provide a detailed explanation of why you believe the decision to decline your claim was incorrect, along with any supporting documentation.

Wait for a decision: Once you have submitted your appeal, the UIF will review your case and make a decision.

This process can take several weeks or months, depending on the complexity of the case.

If you are not satisfied with the outcome of your appeal, you may have the option to take your case to the Commission for Conciliation, Mediation, and Arbitration (CCMA) or to file a complaint with the Office of the UIF Commissioner.

It is always a good idea to seek the advice of a qualified attorney or financial advisor if you are considering appealing a declined UIF claim.

How do I know if my UIF claim is approved?

If you have filed a claim for Unemployment Insurance Fund (UIF) benefits in South Africa and are wondering if your claim has been approved, there are a few ways you can check the status of your claim:

Contact the UIF: One option is to call the UIF (0800 030 007) or visit a local labour centre and ask about the status of your claim.

The UIF should be able to provide you with information about the status of your claim and any potential issues that may delay your claim’s processing.

Check online: The UIF has an online portal where you can check the status of your claim.

To access this portal, make use of the following address: ufiling.labour.gov.za.

Check your bank account: If your claim has been approved, the UIF will deposit the benefits into your bank account. You can check your bank account to see if the funds have been deposited.

It is important to note that the processing of UIF claims can take 15 days or several weeks, depending on the complexity of the case.

If you have not received any information about the status of your claim after a reasonable amount of time, you may want to consider contacting the UIF to inquire about the status of your claim.

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