COID Act, previously known as Workmen’s Compensation
Article supplied by Stephan Pietersen, Work Accident Support.
Compensation for Occupational Injuries and Diseases Act (COID Act), 1993:
In terms of the Compensation for Occupational Injuries and Diseases Act, No 130 of 1993 (COID Act), previously known as the Workmen’s Compensation Act, all businesses who employ one or more employees must register with the Department of Employment and Labour’s Compensation Fund within seven days after the first employee is appointed. This is to cover employees against work accidents and occupational diseases. It applies to temporary, part-time, full-time, seasonal, and casual employees. Exempted employers will not need to pay assessment fees to the Compensation Fund, but will have to compensate their own employees who sustained work accidents or suffered an occupational disease.
Exempted employers are:
- national and provincial government departments
- certain local authorities
- employers insured by a company other than the Compensation Fund
13 different classes and sub-classes:
- Mining industry
- Artificial limbs
Declare annual earnings:
Compensation for Occupational Injuries and Diseases Amendment Act, 2022:
On 17 April 2023 the Compensation for Occupational Injuries and Diseases Amendment Act, 2022 was signed into law. Although signed into law, the implementation date has not yet been provided. Businesses will suffer great financial losses if they miss the due date for the declaration of the return of earnings or the late payment of the assessment. While businesses are being penalised 10% of the assessment currently, the amendment act stipulates that businesses will be penalised 10% of the annual earnings declared, which will have far greater financial consequences.
Letter of good standing:
A business will be in good standing when it:
- Is registered with the Compensation Fund – section 80
- Declared the annual earnings – section 82
- Paid the assessment fee in full / pay instalments – section 86
- Report accidents timeously
The following documents must be submitted to report an injury:
- An employer’s report of an accident (WCI.2)
- The treating doctor’s first medical report (WCI.4)
- The injured employee’s payslip as at the time of the accident
- A valid certified copy of the employee’s ID or other proof of identification
Benefits payable in terms of the COID Act:
- Temporary total disablement – loss of salary income while the employee is booked off duty and is receiving medical treatment
- Permanent disability – the employee suffered impairment and is not able to function as before the accident
- Death – in the unfortunate case where an employee passed away, the spouse and minor children qualify for a monthly pension. The funeral expenses are also payable.
- Medical expenses – The Compensation Fund is also a medical aid and medical expenses and the conveyance of the injured employee will be paid according to the medical aid tariffs
- Constant attendance allowance – An additional payment of compensation can be approved when the injured person who is receiving a monthly pension, needs constant help to perform the essential actions of life.
Work Accident Support together with the LWO have gathered a way for our members to banish all insecurity regarding the COID Act. Let Work Accident Support ensure you comply while you focus on your business.
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