Can I claim UIF if I take early retirement due to ill-health?


Question:

If you take early retirement at age 59 instead of the company's required age of 65 due to ill health, can you claim UIF?

Answer:

Bee,

No doubt you have read the requirement on the Department of Labour web site. It specifies that you can claim an illness benefit unless

- you get benefits from the Compensation Fund; or an unemployment fund under the Labour Relations Act;

- you receive Unemployment Benefits from the UIF;

- have been suspended from claiming because of fraud;

- are ill for less than 14 days;

- refuse medical treatment.

We are not labour law experts, but from the above it appears that early retirement due to ill-health does qualify you to receive an UIF illness benefit, unless you receive another form of State assistance. Importantly though, you can claim only if you are unable to work because of your illness. If your company has given you early retirement because your health is poor, but you could conceivably continue to work, then your retirement may be seen as voluntary, and you would not qualify for a benefit.

The information and answers supplied in this section do not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002.


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