The Department of Employment Labour welcomes the significant progress made by the South African Post Office (SAPO) towards exiting business rescue, noting that the UIF's targeted intervention through the Temporary Employer/Employee Relief Scheme (TERS) played an important role in protecting jobs and supporting the entity's turnaround efforts.

Through a strategic agreement between the UIF and SAPO, more than R381 million was made available through TERS over a six-month period to provide wage relief to 5956 SAPO employees. The intervention was designed to reduce the immediate payroll burden on the financially distressed entity, preserve employment and create the necessary space for SAPO to implement its approved turnaround strategy.

The outcome of the intervention is reflected in SAPO's subsequent progress towards financial and operational stabilisation. In June 2026, the Department of Employment and Labour welcomed SAPO's application to exit business rescue, following substantial progress in implementing its business rescue plan. The business rescue practitioners subsequently reported improvements in SAPO's balance sheet and operational position.

The SAPO intervention demonstrates the practical value of the TERS mechanism as an employment-preservation instrument during periods of severe business distress. Rather than providing an unconditional financial bailout, the support was linked to specific employment and turnaround objectives, with SAPO required to provide regular reporting and demonstrate progress in implementing its recovery plan.

Acting Director-General of the Department of Employment and Labour, Jacky Molisane says the SAPO intervention demonstrates what can be achieved when the UIF's social protection mandate is aligned with a clear employment preservation and business recovery strategy.

“The objective was to protect workers while giving the employer the necessary relief to implement measures aimed at restoring sustainability. The progress now being reported by SAPO provides an important indication of the value of this targeted intervention," added Molisane.

Through the UIF, the Department maintained oversight requirements throughout the intervention. Funding was structured through monthly disbursements, with monitoring mechanisms aimed at ensuring that the funds were used for their intended purpose and that employees remained appropriately declared and supported through the UIF system.

The SAPO business rescue process has also resulted in significant operational changes. According to the business rescue practitioners, the entity reduced its creditor debt substantially, lowered monthly staff costs and implemented workforce and branch rationalisation measures as part of its broader turnaround programme.

The Department views these developments as an important outcome of coordinated government intervention, while recognising that the long-term sustainability of SAPO remains dependent on continued implementation of its turnaround strategy, strengthened governance, operational efficiency and the development of sustainable revenue streams.

The UIF mandate and instruments will continue to be used to support interventions that protect workers, preserve employment and contribute to sustainable economic activity, particularly where there is a credible turnaround strategy and measurable prospects for recovery.

For media inquiries, please contact: Teboho Thejane

Departmental Spokesperson

082 697 0694/ teboho.thejane@labour.gov.za Issued by: Department of Employment and Labour​

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