What happens to UIF when you resign

An employee can only get UIF benefits if his service contract has expired, if he was dismissed by his employer, or if his employer is sequestrated therefore person is not entitled to UIF benefits if he voluntarily resigns from his job.

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The benefits from the Fund do not cover the full compensation. The percentage compensation depends on for how long you have contributed to the Fund. Also, the compensation can never be paid for longer than 238 days. The benefits also stop as soon as you start working again. Domestic workers, however, are entitled to benefits if they lose only part of their work. An employee must submit the claim within six months after he or she has stopped working.

The percentage compensation paid by the Fund is determined as follows:

The Department of Labour looks at two criteria:

–           Salary over the past four years

–           UIF contributions over the past four years