Compensation Fund/COIDA Registration
Important Information you need to know
1. What is the Compensation Fund and when must a business register for it?
The Compensation Fund was also known as WCA or COIDA (Compensation for Occupational Injuries and Diseases Act) is a government institution put in place to protect employees and employers should an injury/disease/death occur to any employee “in the line of duty”.
According to labour law as soon as a business employs a worker (can only be one), the business must register with the Compensation Fund.
2. Does the business or the employees register with the Compensation Fund?
The business is registered with the Compensation Fund. The Compensation Fund registration number is registered in the business name and will stand until de-registered.
3. What are the consequences for my business if I am not registered with the Compensation Fund?
Apart from breaking the law, the business can face huge fines or even prosecution for not complying with the Act. The business can be held responsible for huge amounts of money due to claims relating to injury on duty, diseases, or death from an employee.
4. I am a sole proprietor, should I still register?
Yes, as soon as you employ one worker you must register with the Compensation Fund.
5. What happens after my business has been registered with the Compensation Fund?
A Return of Earnings (W.as.8) form must be submitted to the Fund before 31 March annually. Based on the amount of earnings (salaries) paid to employees and members, and the category the business falls under an assessment will be raised and become payable.
6. What do I do if I am registered and an injury/death on duty occurs?
A claim then needs to be raised with the Compensation Fund which will investigate the circumstances. Subject to certain circumstances the Compensation Fund will then be responsible for any costs.
7. Can I get a letter of good standing once registered?
Once the provisional assessment has been paid a letter of good standing can be obtained from our office at a fee of R513.