COIDA audit and requirements

On 14 July 2022, the Director-General of the Department of Employment and Labour signed a notice informing businesses of compliance with the Compensation for Occupational Injuries and Diseases Act (“COIDA”), and the intention to visit business premises to conduct a COIDA audit.
The Department has recently appointed more than 500 inspectors to ensure that businesses comply with the requirements of COIDA.

COIDA audit: requirements for businesses:

  • Section 80: all businesses in South Africa that employ one or more employees must register with the Compensation Fund within seven days of the first employee’s appointment. This applies to employees on a permanent or fixed-term employment contract (including seasonal employees). The following information must also be provided: date on which the business was established, the number of employees employed, and the salaries paid to the employees.

  • Section 81: personnel records must be kept, as well as salary information. Pay slips must be issued to employees. In the event of an injury on duty, the payslip must be submitted to the Compensation Fund as compensation is based on salary. The slip also validates the employment agreement between the employer and employee.

  • Section 82: businesses must declare their annual payroll to the Compensation Fund by March, or by the date as announced by the Compensation Commissioner.

  • Section 83: businesses are classified into different sub-classes and each sub-class has its own rate. This rate, together with the salaries declared, enables the Compensation Fund to determine the amount payable by the business.
About 950,000 businesses are registered with the Compensation Fund which are classified into 13 classes. These businesses paid R9.5 billion to the Fund in 2020/2021. With these monies, the Fund pays its staff members, compensation for work injuries, and doctors’ bills for the treatment of injuries on duty.

COIDA audit:

The Compensation Fund will begin to visit business premises to conduct audits in order to determine whether businesses comply with the requirements set by COIDA. The following documentation may be required with the audit:
  • Completed salary return form
  • Account issued by the Compensation Fund
  • Proof of payment
  • Letter of Good Standing

Fines payable for non-compliance

In terms of the Act, fines are payable when the employer declares the salaries late (after the deadline), as well as when the account is paid late. If businesses are not in a position to pay the full amount, an installment agreement can be agreed upon with the Fund.

The process of declaring salaries, making payments and obtaining the Letter of Good Standing must be repeated annually and it is important for businesses to keep an eye on the media or the Department’s website for announcements about this. That way, businesses can avoid fines by declaring salaries on time.
When a business is no longer operational, a manual application for deregistration with the Compensation fund must be made at the nearest Department of Employment and Labour as the process cannot be done online. The application can also be sent directly to the Compensation Fund in Pretoria.
As a registered employers’ 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 |



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