In South Africa, the eligibility for unemployment benefits through the Unemployment Insurance Fund (UIF) is primarily based on the nature of the termination of employment. A Mutual Termination Agreement (MTA), which is a voluntary agreement between the employer and employee to end the employment relationship, generally does not meet the UIF's requirements for claiming benefits. UIF benefits are typically intended for individuals who have been involuntarily unemployed, such as in cases of retrenchment or dismissal.

When an employee signs an MTA, the termination is considered voluntary, as both parties have agreed to the end of the employment relationship. This means the employee voluntarily agreed to leave their position, which does not align with the UIF's definition of "unemployment" for benefit purposes. Therefore, employees who leave under an MTA typically cannot claim UIF benefits.

Under an Employer of Record (EOR) model, such as the one operated by Remote People, the legal employer of the individual is Remote People, not the end client. Any challenges faced by the end client, such as operational restructuring, cannot be used as a basis for termination under South African labor law.

Because of this, Remote People cannot classify the termination as retrenchment or an operational dismissal, which are valid grounds for UIF claims. The termination in the case of an MTA would be considered voluntary, and Remote People cannot apply for UIF benefits on the employee's behalf.