Compensation Fund Urges Construction and Electrical Sectors to Strengthen COIDA Compliance

COIDA was enacted to provide structured compensation for temporary or permanent disability, occupational diseases, and fatalities arising from workplace-related incidents.

The Department of Employment and Labour’s Compensation Fund has issued a renewed call for employers in the building, electrical and construction industries to urgently enhance compliance with the Compensation for Occupational Injuries and Diseases Act (COIDA). The appeal follows a targeted COID Sector Workshop held in Durban on Tuesday, designed to address persistent gaps in employer obligations, improve Return of Earnings (ROE) submissions and promote safer, legally compliant workplaces across high-risk industries.

Workshop Aims to Improve ROE Submissions and Assessment Payments

The Durban workshop brought together employers, industry bodies, departmental officials and COID practitioners to address longstanding compliance challenges that continue to affect workers and businesses alike. The engagement focused on:

• Increasing timely ROE submissions, which are essential for accurate assessment calculations

• Enhancing assessment payments, a key component of sustaining the Compensation Fund

• Educating employers on mandatory processes required under COIDA

• Reducing fraudulent activity related to Letters of Good Standing

• Promoting better reporting practices for workplace accidents and occupational diseases

The COID Act remains one of South Africa’s most important labour safety laws, ensuring that employees who suffer injuries, illness or death due to workplace conditions receive compensation and rehabilitation support.

Act Aims to Protect Workers and Improve Workplace Accountability

COIDA was enacted to provide structured compensation for temporary or permanent disability, occupational diseases, and fatalities arising from workplace-related incidents. The Act also establishes a clear legal obligation for employers to register with the Compensation Fund and maintain accurate records to safeguard employees’ rights.

KwaZulu-Natal Deputy Director for COID Services, Jabulani Gumede, opened the workshop by thanking employers for their attendance and emphasising that compliance is not optional.

“Complying with COIDA is a legal requirement. It ensures that employees are protected, and it helps prevent the long-term social and economic impacts of workplace injuries and diseases,” he said.

Gumede stressed that the building and construction sectors experience some of the highest workplace risks, making strict adherence to COIDA crucial.

Employer Obligations Highlighted: Registration, Records and ROEs

Vusi Maluleke, Deputy Director for Employer Services, provided a detailed overview of the main responsibilities employers must meet under COIDA. These include:

• Registering as an employer with the Compensation Fund

• Maintaining accurate employee records

• Submitting Return of Earnings annually within prescribed timelines

• Paying assessment fees determined by the Fund

• Registering domestic workers, following the 2021 legal amendment that expanded COIDA coverage

Maluleke also warned attendees about fraudulent Letters of Good Standing circulating in the industry.

“Employers must always verify Letters of Good Standing through official Compensation Fund systems. Fraudulent letters put your business and your employees at serious risk,” he said.

Reporting Requirements for Injuries and Occupational Diseases

KwaZulu-Natal Assistant Director for COID Services, Nontsikelelo Mhlonyane, addressed critical employer responsibilities when employees are injured or diagnosed with occupational illnesses. She highlighted statutory reporting timelines:

• Workplace injuries must be reported to the Fund within 7 days

• Occupational diseases must be reported within 14 days of diagnosis

Failure to comply can result in penalties, delayed claim processing and financial exposure for employers.

Mhlonyane also presented detailed information on:

• Management of injury-on-duty (IOD) leave

• Compensation benefits available to employees

• Additional pensions for serious or long-term injuries

• Processes related to fatal cases, including support for dependants

She urged employers to prioritise prevention strategies and ensure prompt submission of accident reports to fast-track compensation processes.

Fund Reinforces Ongoing Engagement With High-Risk Sectors

The Compensation Fund reaffirmed its commitment to ongoing sector-specific engagements to support employers, improve compliance and strengthen worker protection. Workshops, digital tools, awareness campaigns and employer support services will continue to be rolled out across the country.

With construction and electrical sectors being among the most hazardous industries in South Africa, the Fund said greater cooperation between employers, government and industry associations is essential to reducing accidents and ensuring timely compensation for affected workers.

A Push Toward Safer Workplaces and Greater Accountability

As workplace safety remains a national priority, the Compensation Fund emphasised that all employers — regardless of size — must fully comply with COIDA to safeguard their employees and avoid legal consequences. Improved compliance contributes to a safer labour environment, faster claims processing and enhanced confidence in South Africa’s worker protection systems.