In recent months, there has been increased focus on the phased implementation of the Compensation for Occupational Injuries and Diseases Amendment Act 10 of 2022.

Although COIDA does not form part of short-term insurance, it remains a critical statutory and legal requirement for all employers in South Africa. Compliance with the Amendment Act is non-negotiable. Failure to adhere can result in severe penalties and legal consequences for employers and companies.

Key legislative changes and amendments

Accountability drives workplace safety. Recent amendments to COIDA have introduced more stringent requirements and expanded the benefits for employees.

Notable changes include:

• The claims submission period has been extended from 12 months to three years from the date of the incident.
• This extended period applies retrospectively, allowing claims for incidents that happened prior to the amendment.
• The objection period has increased from 180 days to 12 months.

These changes significantly enhance employee rights while increasing stricter administrative obligations for employers and companies.

Extended employee and dependent benefits

The amendments have also broadened the scope of benefits available to employees and their dependents.

• Dependents now include students over the age of 18, up to 25 years.
• Other family members dependent on the employee may also qualify for benefits.
• Employees are covered during employer-provided transport, from the time of collection until drop off.

These amendments reinforce the importance of accurate employee records and proper benefit administration.

Employer responsibilities and contractor liability

COIDA places strict accountability on employers, particularly within the construction and engineering sectors.

A key enhancement relates to the contractor/subcontractor relationship. If the subcontractor fails to register or maintain COIDA compliance, the main contractor becomes liable by default.

This may be more complicated than it appears, but it is important to highlight for the construction industry, as it introduces a critical risk exposure for principal contractors.

Compliance requirements and penalties

Employers are required to submit a claim within seven days of the incident, or as soon as they become aware of the incident.

Where the employer fails to comply, it can lead to a penalty of up to 10% of the estimated or actual annual employee earnings.

Non-compliance with the regulations may attract harsher administrative penalties and possible compliance orders from the Labour Court.

All penalties are contained within the Amendment Act.

Definition and scope of ‘employee’

For clarity, the definition of an employee includes, but is not limited to:

• Permanent or casual employees
• Temporary workers
• Domestic workers
• Directors employed under a contract of service
• Apprentices and learners

Employee contracts may be written, oral, or implied.

Clearly, the scope of COID is very broad; therefore, it is crucial for employers and companies to ensure that all qualifying individuals are included in their registration and reporting procedures.

Cross-border employee cover

COIDA also provides cover for employees contracted in South Africa who are temporarily working outside of South African borders.

This cover is valid for a maximum period of 12 months, after which it automatically ceases.

Employers should consult with the Compensation Commissioner to clarify all terms and conditions for cross-border employment.

Scope of cover under COIDA

In order to qualify for compensation under COIDA, an employee must be acting within the course and scope of employment.

COIDA is restricted to:

• Work-related injuries
• Occupational diseases
• Disability (temporary or permanent)
• Death arising from workplace incidents

Maintaining a safe working environment, as well as proper incident reporting procedures, is paramount.

Real-world risk exposure

The importance of COIDA compliance is highlighted by real-world events.

During the collapse of a building in George, Western Cape, on 6 May 2024, a total of 34 construction workers were killed, and approximately 28 others sustained serious injuries requiring urgent medical care or hospitalisation.

The consequences of permanent or temporary disablement, as well as the pain and suffering of survivors and dependent family members following such a devastating incident, illustrate the critical role of COIDA in providing protection and compensation.

COIDA compliance is critical

Consort has published this article as an important reminder that COIDA applies across all industries and is not limited to construction and engineering. Every registered employer or company in South Africa is subject to COIDA compliance.

It is critical to ensure full compliance with COIDA requirements, maintain accurate employee records, and implement proper reporting and administrative procedures.

At any time, an employee may sustain an injury or a fatality may occur. Such a tragedy can lead to major financial risk and legal consequences if the employer or company is in breach of COIDA.

The procedure to register and comply can be accessed through the appropriate online platforms.

Consort Technical Underwriting Managers