The Minister of Employment and Labour Nomakhosazana Meth told the Portfolio Committee on Employment and Labour that the LAP of the UIF, given its mandate of enhancing employability, enabling entrepreneurship, and preserving jobs; was identified as an appropriate vehicle to implement the Department's employment creation efforts.

Minister Meth reminded the Committee that LAP is not a short-term intervention but a long-term investment in South Africa's human capital, as it funds multi-year training programmes such as skills development, learnerships, and apprenticeships.

The Department was presenting the programme's progress report to the Employment and Labour Portfolio Committee on Zoom platform on Wednesday, 04 June 2025.

Presenting the LAP progress report, UIF Acting Commissioner Lucky Mkhonto said in the fourth quarter of the 2024/25 Financial Year, the UIF LAP has achieved four of the six Output Indicators. The two output indicators not achieved relate to the approval or rejection of 90% of valid Temporary Employer/ Employee Scheme (TERS) applications by the delegated Authority within 20 working days as well as putting 90 000 participants into the employability programme. The Programme achieved 46% of 24 applications received and managed to put 28 606 participants.

According to Acting UIF Commissioner, the Programme performed well in terms placing vulnerable groups participating in employability programmes and here they achieved 82% of 28 606 exceeding the target by 32%, has managed to fully monitor 90% of the 104 active projects, supported 862 enterprises, and managed to review the LAP strategy.

The Acting Commissioner told the Committee that failure to achieve was attributed to leadership changes and appointment of an acting commissioner at the Fund, which in a way delayed the approvals and rejections of valid TERS applications and therefore, could not be concluded within the expected timeframes. Another reason cited was enhanced due diligence measures deployed, including a revised funding agreement template as well as additional compliance steps undertaken. These, he said theses was meant to strengthen accountability and applicants were required to submit written employment commitments. “I do not regret these failures," Mkhondo said.

On the Temporary Employer/Employee Relief Scheme, Acting Commissioner highlighted the two major projects being that of the South African Post Office OSC Limited (SAPO) and ArcelorMittal South Africa Limited. He said for SAPO the contract has been fully signed and implementation was held with SAPO on 09 May 2025 and for ArcelorMittal South Africa Limited, the contract has been signed by the Department and only awaiting signature from the company.

In conclusion, Minister Meth summed the Department's plans as well as intentions in dealing with the issue of unemployment, also addressing some concerns from the Committee members. She thanked the Committee and assured the members that the Department will utilise some of the suggestions offered during the meeting.

For media inquiries, please contact:

Teboho Thejane

Departmental Spokesperson

082 697 0694/ teboho.thejane@labour.gov.za

-ENDS-

Issued by: Department of Employment and Labour

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