Who needs to register?
If you employ someone then as an employer you must register with the Compensation Fund and pay an annual assessment fee. This fee is based on your workers’ earnings and the risks associated with the type of work they are doing. The fees payable cover your workers against occupational diseases, injuries and death.
Certain employers do not have to pay assessment fees. You may not need to pay assessment fees – Click here to find out more?
When do you have to submit your assessment?
Every year in April, the Compensation Fund sends a notice of assessment which stipulates how much you should be paid for the assessment fee.
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Your Fees may increase or decrease according to an employer’s accident costs. If you are an Employer with low costs you may then qualify for assessment fee rebates.
To read more: https://www.gov.za/services/services-organisations/labour/compensation-fund
COIDA prevents employees covered by the Act from suing their employers for damages in terms of common law. Any company not registered with the Compensation fund becomes liable for medical expenses.
Who is covered? The fund covers an employee who is:
- permanently employed
- a domestic worker in a boarding house
- an apprentice or trainee farm worker and
- a worker paid by a labour agency.
When you employ your first employee, whether they are part-time or full time, you will need to register with the Compensation Fund and pay the annual assessment fees.
It is the duty of every employer to submit a statement of all the earnings paid to all their employees (this includes contractors) during the year. The year starts from the beginning of March and ends on the last day of February.
What do you get?
You will receive a letter of Good Standing when you have completed the annual assessment and paid your annual fee. The letter of Good Standing is a document issued by the Compensation Commissioner. This is an official document that shows that you meet the requirements of the Compensation Act.
What is the Compensation Fund? This is a trust fund that is controlled by the Compensation Commissioner and you, the employer, contribute to the Compensation Fund.
Compensation for injury on duty matters are regulated in South Africa through the Compensation for Occupational Injuries and Diseases Act, no.130 of 1933, and referred to as COIDA.
How much do you have to pay? The annual assessment fee is based on all of your employee’s earnings and the risks associated with the type of work or profession.
What is the purpose of the COID Act? The aim of the COID Act is to provide for compensation in the case of one of your employees being disabled whilst on duty and the disablement being caused by occupational injuries and diseases.
“To provide for compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees in the course of their employment, or for death resulting from such injuries or diseases; and to provide for the matters connected therewith.”
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