The Compensation for Occupational Injuries and Diseases Act (COIDA) is a South African law that provides compensation to employees who are injured or contract an occupational disease because of their employment. The Act also provides compensation to the dependents of employees who die as a result of an occupational injury or disease. Compensation means money paid by the Compensation Fund to employees who were injured on duty to replace loss of wages and/or medical expenses. However, if you are off work for only 3 days or less you will not receive compensation, but medical expenses will be covered.
The Fund generates its revenue from levies paid by Employers, and this consists of annual assessments paid by registered employers on a basis of a percentage or fixed rate of the annual earnings of their employees. COIDA does however make provision for a minimum assessment to ensure the assessment is not less that the administration costs incurred.
Compensation Fund benefits are paid to three categories of claimants:
- Employees who suffer a temporary disability (maximum period of 24 months)
- Employees who are permanently disabled (lump sum paid if percentage disability is 30% or less otherwise a regular pension payment is made)
- Dependants of employee who dies because of injuries sustained in work-related accidents or because of an occupational disease.
Reasonable medical expenses arising out of an injury on duty are payable for a period of two years, or longer if further medical treatment will reduce the extent of the disablement.
The Compensation Fund offers the following services:
- Employer Services
- Claims Services
- Medical Services
- Finance Services
- Legal Services
- Rehabilitation and Orthotics
Who must register with the fund?
- ALL employers who employ one or more part-time / casual / temporary or full-time employees for the purpose of his/her business.
- A separate registration is required for each separate branch of a business with its own CIPC registration certificate.
- ALL employers are expected to register with the Compensation Fund within seven days after the first employee was employed.
Who is an Employer?
An Employer is any person who employs one or more employee part-time, casual, temporary or full-time for the purpose of his/her business activities.
Who is an Employee?
- A person who has entered or works under a contract of service or apprenticeship or learnership with and employer and receives remuneration (permanent or casual)
- A working director of a company
Employers’ assessment tariffs are based on the classification of the business according to an industrial classification system based on the class of industry in which the employer is engaged in. These are reviewed annually and calculated based on the risk related to a particular type of work.
Duties of ALL Employers employing Employees:
- Register with the Compensation Commissioner (will receive a CF Registration number)
- Submit ANNUAL Return of Earnings (Salaries, commissions, wages etc)
- Pay assessments when received
- Receive a Letter of Good Standing once assessments have been paid
- Report all accidents and occupational diseases to the Commissioner
NB – the payable assessment must not be reimbursed from employees meaning that you cannot deduct this from your employees’ salaries. This remains a company expense.
Failure to perform any of these functions is a criminal offence and extensive penalties may be imposed in cases of non-compliance.
What to do when you are injured or contracted a disease because of your work:
If an employee believes that he or she has been injured in the workplace a claim can be filed with the Compensation Commissioner who will evaluate the claim against a schedule of common workplace injuries and diseases. An employee must provide some documentation from approved medical practitioners to support his or her claim.
Various W.C1 referral forms need to be completed and submitted to the Compensation Commissioner. If the claim proves successful, the employer must pay their compensation (75% of your earnings) for the first three months of absence from work which will then be reimbursed by the Fund.
Please keep copies of all reports submitted.
Documents required to register with the Compensation Fund
- Registration of Employer form (W.As.2)
- CIPC registration certificate
- Director/Member copy of ID
#WVDW #WVDWFinancialServices #bookkeepers #accountants #Director #BusinessOwners #Regulatory #Employment #EmploymentLaws #Coida #CoidaReturns
Kindly note this article is intended for general information purposes only and does not constitute accounting, tax, nor regulatory related advice. Should you need advice, please contact one of our practitioners.