ETI – LEGISLATION BREAKDOWN IN SIMPLE TERMS

The ETI Act prescribed certain test that an employer must apply in order to determine if ETI can be claimed in respect of a specific employee.

These tests are to determine if ETI can be claimed in respect of a specific employee:
1. Is the employer an eligible employer (section 3)
2. Does the employer comply with a wage regulating measure (section 4)
3. Is the employer disqualified due to displacement (section 5)
4. Is the employee a qualifying employee (section 6)

Only when all the above tests are satisfied may the employer determine the ETI amount claimable in respect of the relevant employee (section 7).