Compensation for occupational injuries and diseases COID is a government body that is mandated to compensate workers who have been injured at work or have contacted a disease and illness at work. In South Africa, the government enacted this act to protect workers from injuries or contacted diseases from work. Compensation for Occupational Injuries and Diseases Act No 61 of 1997 state that “To provide for compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees in the course of their employment, or for death resulting from such injuries or diseases, and to provide for matters connected therewith”. Therefore COID is there to protect and safeguard workers when they are injured and to make sure that companies support their compensation by paying your tariffs.
To provide for compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees in the course of their employment, or for death resulting from such injuries or diseases, and to provide for matters connected therewith.
According to the government, COID Act applies to:
- All employers; and casual and full-time workers who, because of a workplace accident or work-related disease:
- Are injured, disabled, or killed; or
- Become ill.
However, the Act excludes:
- Workers who are totally or partially disabled for less than 3 days;
- Domestic workers;
- Anyone receiving military training;
- Members of –the South African National Defence Force, or the South African Police Service;
- Any worker guilty of willful misconduct, unless they are seriously disabled or killed;
- Anyone employed outside the RSA for 12 or more continuous months; and workers working mainly outside the RSA and only temporarily employed in the RSA.
Compensation benefits will not be paid if:
- You reported the accident to the employer more than 12 months after the accident or death, or after the disease was diagnosed
- You are off work for three days or less, when the Fund will only pay medical
- the accident resulted from your own negligence or wrongdoing (unless you are seriously disabled or die in the accident, then the Fund will still pay compensation)
- You unreasonably refuse or willfully neglect to have medical treatment.
Why must your company register with COID?
It is important as an employer to be registered with COID, COID is a legal; requirement for all companies who employ people to register with COID, even if you have one or two employees at your company, you must register with COID. Many companies in South Africa are not registered with COID, and many are so reluctant to do so. If you are not registered with COID, you are committing a serious criminal offense and could be fined or face a jail term. If you are registered with COID, you are protected by civil rights or civil claims if a worker is injured or contracts a disease at work, for instance, if you are registered with COID your employee cannot take you to court and claim damages for injuries or disease. Workers who are injured on duty are eligible to claim compensation for permanent or temporary disablement. In addition, if a worker dies or gets injured on duty, their next of kin or dependants can claim compensation, for instance, COID pays the dependents of a worker who has passed away or is not able to work anymore (if they are financially dependent on the worker).
Mentioned above COID is a government body responsible for compensating workers who have been injured at work or who have contracted a disease or illness at work.
Many people have asked this question how much do company’s pay and how is the tariff for COID calculated. The COID Compliance Guide states that a commissioner does an assessment of salaries or wages you have paid to your employees (permanent and temporary) throughout the year. The risks are connected with the type of work your firm forms part of the assessment. If the risks in your business are, high that means the tariff you will pay will be higher. How is this calculated, your tariff is calculated on the history of claims made to COID and after the calculation of your tariff has been finished, COID will immediately send your organization an assessment document with the due for the payment of your tariff. Upon receiving your assessment, you have 30 days to pay your tariff. However, it is important to remember you will be charged interest for late payment.
Furthermore, if you employ few employees and their salaries and wages you pay are below the minimum level, you will only have to pay a minimum tariff. Each year the commissioner reviews the minimum level so this may vary from year to year. In addition, your company’s claims for compensation are higher than your industry average; the commissioner has the legal mandate to increase your tariff and required to pay a penalty. if your company manages the risks and reduces accidents and injuries at work, the compensation commissioner will give your firm a rebate which will be calculated by assessing and evaluating the history of your company claims over a 3- year period.