Workmans Compensation made Simple!
The purpose of the Act is to: “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.”
Every year employers need to declare what their salaries and wages were for the last financial year and what they expect it to be in the coming financial year. After some calculations involving the risk tariff which is determined when you get registered, Coid will send you a calculated assessment.
This is your contribution to pay to the fund, for full cover against injury on duty for the year. Once this is paid and assuming you are assessed up to date and have no other outstanding balances you can apply for a letter of good standing.
All Companies who have a Letter of Good Standing at the Compensation Fund, need to renew it before 30 April annually – this date is unrelated to the date on which you applied for your first Letter. You may have requested a letter in March and by the end of April you’ll have to renew it again.
What happens if my fees are not up to date?
If your fees are not up to date, we will send you the information you need to settle your account with the Compensation Fund (COIDA). The COMPENSATION FUND will charge you these fees in addition to our service fee.
Only once all fees payable to the compensation fund are up to date can we apply for a Letter of Good Standing (LOGS).
If any employee gets injured on duty; or becomes sick with ‘Occupational Diseases’, the employer will be protected against civil claims.
Most contracts and tenders require that the company has COID Registration before he/she can apply for any contracts/tenders.
Employees who get injured on duty or those who contracted occupational diseases can claim compensation for temporary or permanent disablement. These claims will be awarded per the degree of disablement or death by the Department of Labour.
They will also be covered for reasonable medical expenses arising out of an injury on duty. This compensation is payable for a period of two (2) years or longer if further medical treatment is needed and if it will reduce the extent of disability.
If an employer is registered with the Compensation Fund as per section 80 of the COID Act, he/she can apply for a Letter of Good Standing from the Compensation Fund. This letter states that there is no outstanding claims/debt on his/her Compensation Fund record.
- A copy of your ID
- Company Documents
- Power of Attorney (We will email the POA to you)
All the documents can be uploaded directly on the website. Alternatively, you can email or fax the documents to us.
A letter of good standing is issued by the compensation commissioner. It is an official statement of a business' ability to meet with the various requirements of the Compensation Fund Act. The fund has been set up to protect employees from the negative impact of occupational illness, injury and death. To be part of this fund, your business must pay an annual assessment fee and have a valid letter of good standing.In order to receive this letter, you must register with the Compensation Fund and have submitted all earnings statements to the fund for perusal. We will assist you with this. You can expect for your business to be fully assessed and you will be requested to ensure that all outstanding debt, as per the act, is settled before your letter can be provided.
COIDA is short for Compensation for Occupational Injuries and Diseases. It used to be referred to as simply workers compensation. If a staff member or employee is injured on duty, they will be compensated for by the department of labour. It is compulsory to be registered with Coida.
Assessment tariffs, reviewed annually, are based on the risks related to a particular type of work.
Employers fall into one of over a hundred subclasses, each with its own assessment tariff. (See the Compensation Fund Assessment Tariffs document)
If an employer’s accident costs are higher than others in the same subclass, the assessment tariff may be increased. If costs are lower, the rate may be reduced.
The “accident” must occur while the worker is on duty, in other words, it must take place out of and be in the course of employment. The employee must be doing what he/she was employed to do. It must be employment that causes the accident or exposes the worker to the risk of the accident.
It is your responsibility as an employer to register with the Compensation Fund once you appoint one or more employees. If you fail to register with the Compensation Fund, you shall be guilty of an offence.
Note: This excludes domestic workers employed by households and anyone receiving military training.
The annual assessment fee is calculated on workers earning and the assessment tariff based on the risks associated with the type of work that is done by the specific employer.
Assessment fee = total employees earning ÷ 100 x assessment tariff.
Based on legislation in section 83 (chapter IX) of the COID Act.
Assessment fees are payable in advance within 30 days of the date on the assessment notice sent to employers each year.
The deadline for remitting the returns of Earnings as well as applying of a new or renewed letter of standing is 30th April of each year.
If it’s the firsttime application, the submission is included in the COID registration document but for a renewal one must submit the Returns of Earnings as well.
How long is a letter of good standing valid?The validity of the letter of good standing is one year. The letter is renewed every 30th of April. Everyone must renew their letter of good standing before 30th April of every year. Please note that this date is not related to the date of application of the letter.
One can choose to register with the Department of Labour ( 3 months) or use our COID service which is equipped with a team of professionals to do the registration on your behalf in 10 days..