COIDA – regulations and amendments

COIDA – Tariffs of assessment

During November 2020 the Minister of Employment and Labour approved new regulations relating to the tariffs of assessment under the Compensation for Occupational Injuries and Diseases Act (COIDA). These tariffs, in combination with a business’s declared payroll, are used to calculate the business’s account payable annually to the Compensation Fund. These tariffs are associated with an industrial asset class (business industry) and the higher the risk of getting injured, the higher the tariff. There are currently 13 different asset classes.

Once a business declares its annual payroll to the Compensation Fund, an account is issued which is payable within 30 days. The declaration for 2021 must be done between 1 April 2021 to 31 May 2021 and during this period businesses must declare what their payroll was from 1 March 2020 to 28 February 2021 and estimate what it will be from 1 March 2021 to 28 February 2022.

Important to note: businesses must declare payroll up to only R484 200.00 until 28 February 2021 and R506 472 until 28 February 2022. Failure to declare the payroll, as well as make payment within 30 days will result in a penalty of 20% based on the assessment. This can have a huge impact on the cash flow of any business. During 2018/2019 close to R1 million was calculated in penalties by the Compensation Fund.

Companies who are not in a position to pay their full account, can apply within 30 days of the account being issued for a payment arrangement with the Compensation Fund.

COIDA – Injury on duty

COIDA requires that work accidents must be reported within seven days to the Compensation Fund. Failure to do so will result in heavy penalties.

The employer is required to complete an Employer’s Report of Accident and submit this report together with a certified copy of the injured employee’s ID and payslip on the Compeasy system. The injured employee should take a copy of the Report of Accident to the treating doctor.

Employers must pay the injured employee his/her normal salary if the employee is booked off for at least four days, but can claim this back from the Fund once the employee returns to work. Neither the employer nor the injured employee should pay for medical costs, as the Fund also operates as a medical aid and the treating doctor should submit the claim directly to the Fund.

Benefits payable in terms of COIDA include:

  • Payment of salaries to injured employees (refund of paid salaries to employers)
  • Permanent disability
  • Medical expenses, including chronic medication
  • Death benefits: funeral benefits and pension to widow/widower/children
  • No compensation is payable for pain and suffering

COIDA – Amendments under review

Several amendments are currently under review by the Compensation Fund regarding penalties for non-compliance. Some of these amendments are as follows:

  • Failure by the employer to report an accident within seven days will result in a 10% penalty of the declared annual payroll.
  • Failure by the employer to complete the Employer’s Report of Accident in full will result in a penalty equal to the full amount of compensation plus interest.
  • Failure by the employer to pay an injured employee his/her salary while off duty for more than four days will result in a penalty equal to double the full amount of three months’ compensation plus interest.
  • Failure by the employer to transport an injured employee to the nearest doctor will result in a fine equal to the full cost of the conveyance.
  • Failure by the employer to keep a record of an employee’s earnings will result in a penalty of 10% of the actual or estimated annual earnings.

These penalties can have severe consequences for the employer if the correct procedure is not followed. Employers must familiarise themselves with these and educate their employees about what to do when an accident at work happens.

COIDA – What about domestic workers?

On 10 February 2021 the Compensation Fund Commissioner signed into effect the inclusion of domestic workers under COIDA (download the Government Gazette 44250), ensuring that domestic workers will be covered by the Act and qualify for benefits. The Constitutional Court declared on 19 November 2020 that section 1 (xix)(v) of the Act was invalid with immediate and retrospective effect to 27 April 1994.

Private households who employ a domestic worker(s) must register as a domestic employer. Domestic employers will fall under its own sub-class with a rate of 1.04 payable. The following documents must be submitted for an employer to register:

  • Application form for the domestic employer to register
  • Copy of the employer’s ID/passport/work permit
  • Proof of the employer’s residential address
  • Copy of the employee’s ID/passport/work permit
  • Copy of the employment contract

Domestic employers must also submit a record of the annual wages paid to the domestic worker(s) (return of earnings).

Claims for injuries or diseases can be registered online or submitted to the nearest Labour Centre. The earnings must be completed on the prescribed form to calculate and pay benefits. When a domestic worker is employed by more than one employer and an accident/injury occurs, the earnings received by all the employers must be submitted to the Compensation Fund.

COIDA and the LWO

As a registered employer’s organisation with the Department of Employment and Labour, the LWO specialises in labour law and can therefore only assist employers in this particular field. We do however always explore opportunities to take hands with service providers in other specialist fields to put solutions on the table for our members. Contact Stephan Pietersen from Work Accident Support for COIDA assistance: 064 360 2638 | support@workaccident.co.za.


Not yet a member?

If you are an employer it just makes sense to join the LWO. Get unlimited access to our legal department (specialised only in labour law) and make sure you comply with labour law. Did you know you can use labour law to protect your rights as the employer? All labour law advice and documentation are unlimited and free to all our members.

Join today and enjoy the peace of mind that goes with being a member.

How does membership work? What are the benefits? What does it cost? Get the answers here, or contact our offices at info@lwo.co.za | 086 110 1828. Let’s discuss your business’s needs so we can recommend the best solution for you.

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LWO Regsadviseur - LWO Legal Advisor

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