Staying Compliant with Labour Laws

As a business owner in South Africa, it's essential to understand how workers' compensation works to ensure compliance and to protect both your employees and your business.

 

Eligibility for Claims

You can claim if:

  • You were injured or contracted a disease while working (permanent or casual), training, or completing an apprenticeship.
  • You lost a family member who died on the job.
  • You’re an apprentice or trainee farm worker.
  • You’re a worker paid by a labour agency.

You can’t claim if:

  • You are a member of the South African National Defence Force or Police Services (covered by separate funds).
  • You are an outsourced employee.
  • You work outside South Africa for more than 12 months at a time.

 

Conditions for Claims

Claims must be submitted correctly and on time. They will not be paid if:

  • The claim is made more than 12 months after the accident, death, or disease diagnosis.
  • You are off work for three days or less.
  • The accident resulted from your own wrongdoing (unless it led to serious disability or death).
  • You refuse medical treatment unreasonably.

 

The Compensation Fund

Employers are required to pay into the Compensation Fund on a monthly basis. The fund covers occupational diseases and workplace injuries listed in Schedule 3 of the Compensation for Occupational Injuries and Diseases Act No 130 of 1993 (COID Act). Other diseases may also be covered if you can prove they were caused by your working conditions.

 

Types of Compensation

Medical Costs:

  • Medical expenses are covered for up to two years from the date of the accident or disease diagnosis.
  • You can choose your medical service provider.
  • All medical accounts, including transport fees, should be submitted to the Commissioner.

Temporary Disability:

  • If a doctor puts you off work for more than three days, you can claim for temporary disability.
  • You'll receive 75% of your normal wage for the period you can’t work, up to 12 months, extendable to 24 months.

Permanent Disability:

  • Permanent disabilities are rated from 100% to 1%.
  • Disabilities over 30% result in a monthly pension, whereas less severe disabilities are compensated with a lump sum.

Death Benefits:

  • If a worker dies from a work-related injury or disease, their dependents can claim compensation.
  • The amount varies based on the relationship to the deceased and the deceased's potential earnings.

 

Employer Obligations

Employers must:

  • Report incidents promptly (within 7 days for injuries, 14 days for diseases).
  • Ensure that all forms are correctly completed and submitted.
  • Pay initial compensation to employees and claim reimbursement from the fund.
  • Keep records of all incidents and communications related to the claims.

 

Protection for Workers

The Compensation for Occupational Injuries and Diseases Act (1993) protects workers from victimisation for filing a claim. Employers must ensure a supportive environment for employees who need to make a claim, while maintaining compliance with South African law.