INJURY ON DUTY MATTERS?

COIDA AUDITS AND COMPLIANCE WITH THE COMPENSATION FUND

WHAT DO EMPLOYERS NEED TO KNOW?

For compliance with the Compensation Fund, employers must:

1. Be registered with the Compensation Fund.

2. Maintain up-to-date records of earnings and employee details, readily available upon request.

3. Report accidents promptly, within 7 days, and occupational diseases within 14 days of notice.

4. Submit the Annual Return of Earnings (ROE) on time, typically done through the online system.

5. Ensure assessments are paid up to date, based on a percentage of annual employee earnings and the industry’s risk level.

6. Make payments within 30 days of assessment, facing penalties and interest for late payments.

For Audits, employers should:

If facing an audit from the Compensation Commissioner, it’s advisable to submit the following documents promptly:

1. Affidavit explaining any discrepancies or credit assessments.

2. Signed audited or independently reviewed annual financial statements for the relevant year.

3. Detailed payroll report for the assessed year.

4. SARS EMP 501 documentation.

5. UIF Registration number.

6. Manual Return of Earnings (W.As.8).

7. Power of Attorney if represented by an accountant or consultant.

Failure to provide the requested information by the specified date may result in the Commissioner making an assessment based on estimation. It’s essential to comply with audit requirements to ensure accurate assessments and avoid potential penalties or fines.

WHAT ARE BENEFITS FOR EMPLOYERS?

1. Assistance for injured Employees: Registration ensures that employees who are injured on duty or contract occupational diseases receive support for medical costs and loss of earnings. This assistance helps prevent employees from facing financial hardship due to work-related injuries or illnesses.

2. Protection for employers against civil claims: Employers are shielded from civil claims related to workplace injuries or diseases when they are registered with the Compensation Fund. This protection alleviates the financial burden and legal risks associated with potential lawsuits.

3. No-Fault Systems: The Compensation Fund operates on a no-fault basis, meaning that there’s no need to prove employer fault in order to receive benefits. This streamlines the process for injured employees to access compensation and support.

4. Financial Security for Dependents: In cases of fatal injuries at work, dependents of the deceased employee receive a pension. This financial support helps sustain the family and ensures they’re not left without means of support.

5. Prevention of Employee Lawsuits: COIDA prevents employees from suing their employers for occupational injuries or diseases, providing them with statutory insurance cover instead. This framework simplifies the legal landscape and ensures consistent support for injured workers.

6. Recovery of Compensation: Even if employers fail to register with the Compensation Fund, the Fund still processes claims from employees. However, it can recover compensation payments from the unregistered employer, potentially leading to significant financial liabilities for the employer.