EOHCB: Compensation for Occupational Injuries and Diseases Act (COIDA)

The Compensation for Occupational Injuries and Diseases Act (COIDA) established a compensation fund, under the control of the Director General of the Department of Employment and Labour. In practice, the Director-General delegates his or her functions to the Compensation Commissioner.

Any compensation claimed for occupational injuries or diseases that an employee might have had against an employer is replaced by insurance coverage, in order to guarantee reasonable remuneration or income for employees who have suffered a workplace injury or occupational disease.

COIDA provides for coverage on a no-fault basis, meaning that the employee (or his or her dependant) will be compensated regardless, of whether the employer was at fault in causing the injury or disease. Employers are expected to register and pay assessments to the Compensation Fund.

Employees are prevented from suing their employers for damages suffered as a result of an occupational accident or disease – they must claim from the Compensation Fund. Employees who are employed by labour brokers are, however, not prevented from suing the clients of the labour brokers if they are able to prove negligence. COIDA defines an “accident” to mean “an accident arising out of and in the course of an employee’s employment and resulting in a personal injury, illness or the death of the employee”.

COIDA provides extensive coverage to most employees, including casual employees, domestic workers, labour broker employees and, in the case of a deceased employee, his / her dependants. Independent contractors and selfemployed workers are, however, excluded.

Compensation Fund benefits are paid to three categories of claimants:

1. Employees who suffer a temporary disability (maximum period of 24 months);

2. Employees who are permanently disabled (a lump sum is paid if the percentage disability is 30% or less; otherwise a regular (pension payment) is made); and

3. The dependants of employees who die as a result of injuries sustained in work-related accidents or as a result of an occupational disease.

Reasonable medical aid expenses arising out of an injury on duty are payable for a period of two years, or longer if further medical treatment will reduce the extent of the disablement.

COIDA places extensive obligations upon all employers in South Africa. These include:

• Registration with the Commissioner;

• Submitting annual wage returns;

• Paying assessments; and

• Reporting all accidents and occupational diseases to the Commissioner.

Employers must pay employees who are temporarily disabled their compensation for the first three months of absence from work (which will be reimbursed by the Fund).

The failure to perform any of these functions is a criminal offence and extensive penalties may be imposed in cases of non-compliance.

There is great difficulty in proving that an employee contracted a disease as a result of the type of work he or she was performing or from working in a particular workplace. Schedule 3 of COIDA lists the most common occupational diseases to address this issue. Employees who contract unlisted work-related diseases are required to prove that the disease is related to their work in order to receive compensation. The calculation of compensation for a disease may be based on earnings at the time of the commencement (i.e., the diagnosis date) of the disease.

If an employee believes that he or she has been injured in the workplace or as a result of a working condition, a claim can be filed with the Compensation

Commissioner who will evaluate the claim against a schedule of common workplace injuries and diseases. An employee must provide some documentation from approved medical practitioners to support his or her claim.

Various Workman’s Compensation Insurance (W.CI.) referral forms need to be

completed and submitted to the Compensation Commissioner, depending upon whether the employee has experienced an occupational injury or disease. If the claim proves successful, the employer is liable for the payment of compensation for the first three months from the date of the occupational injury.

With reference to Covid-19 and vaccinations, during August 2021, the Compensation Commissioner published a notice stating that the Compensation Fund will cover employees for injuries, illness or death as a result of receiving a Covid-19 vaccine, only where an employee is required by the employer to receive vaccination as an inherent requirement of employment or where vaccination is required based on the Occupational Health and Safety risk assessment conducted by the employer.

The following requirements shall apply:

• The vaccination must be regarded as an inherent requirement of the job as determined by the employer’s risk assessment;

• The employee must have been vaccinated with SAHPRA-approved Covid-19 vaccine;

• Evidence must be provided of the employer’s Risk Assessment and Vaccination Plan as set out in paragraph 3(1)(a)(i)(ii) and (b) of the Consolidated Directions on Occupational Health and Safety Measures in Certain Workplaces dated 28 May 2021;

• The chronological sequence between the vaccine inoculation and the development of symptoms and clinical signs must be provided;

• The employee must have presented with symptoms and clinical signs that are generally recognised as side effects of Covid -19 vaccine; and

• Additional tests may be required to assess the presence of abnormalities of any organ affected.

Take further notice that the claims will be adjudicated and compensation will be determined and paid in terms of the Act and the Guidelines of Compensation Fund.

It is compulsory for all employers to register their employees with the Compensation Commissioner. An employer must register with the Commissioner within seven days after the day on which he / she employs his / her first employee.

An employer must register with the Commissioner by submitting Form W As 2 with the particulars required therein to the Commissioner. These forms are available on the website of Department of Labour.

Employers must make sure that they fill in all the questions on the form. During registration copies of the following documentation should be included:

• The registration certificate from the Register of Companies if they are a company or closed corporation; or

• Their ID document, if they are sole owners of the business.

The Compensation Fund is a trust fund that is controlled by the Compensation

Commissioner and employer contributes to the Compensation Fund. The

Commissioner is appointed to administer the Fund and approve claims lodge by employees or their dependants. This means that the Fund will compensate the employee or their dependants and not the employer.

The annual assessment fee of an employer is based on their employee's earnings and the risks associated with the type of work or profession. Before 31 March each year, all employers must submit a statement of earnings paid to all their workers from the beginning of March to the end of February.

EOHCB Contact Details

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