Frequently asked COID questions.

According to the Unemployment Insurance Act 2003 a "domestic worker" means an employee who performs domestic work in the home of his employer, and includes a:

• gardener
• person employed by a household as a driver of a motor vehicle
• person who takes care of any person in that home
• does not include a farm worker

According to legislation, domestic workers should work no more than 45 hours per week. If they work a five day week, no more than 9 hours a day and no more than 8 hours per day if working a 6 day week.

Domestic workers should work no more than 15 hours per week overtime, and no more than three hours on any one day.

They should also receive double pay on Sundays or public holidays.

All employees must contribute 1% of their salaries to the UIF.

In addition to this, the employer also contributes 1% in respect of each domestic worker in his/her employ. The total contribution paid to the UIF is therefore 2%. The onus is on the employer to facilitate this monthly payment.

Unemployment benefits - A domestic worker who contributed to the fund and whose employment has been terminated can claim. Employees cannot claim if they resign.

Illness benefits - A domestic worker who can't work because of ill health can claim for 6 months.

Death benefits - If a domestic worker who contributed to the fund dies, their dependents can claim.

Adoption benefits - A worker who contributes to the fund who is adopting children below two years of age can claim if they take unpaid leave to look after the child.

Maternity benefits - A domestic worker who is pregnant can claim maternity benefits before and after the child is born.

uFiling is an online payment service provided by the Department of Labour. 

Minimum wages for domestic workers who work more than 27 ordinary hours per week. (Area A - Urban Municipalities)

Minimum rates for the period 1 December 2019 to 30 November 2020

• Hourly rate: R19.09
• Minimum wages for domestic workers who work 27 ordinary hours per week or less. (Area B-Rural Municipalities)

Minimum rates for the period 1 December 2019 to 30 November 2020

• Hourly rate: R19.09

One weeks' notice must be given if the Domestic Worker has been employed for less than 6 months. If the employment was longer than six months, four weeks' notice is required. Domestic Workers are entitled to severance pay. One week for each year worked.

Employers must give workers the following information in writing when paid:

• Employers name and address
• Workers name and occupation
• Period for which payment is made
• Total salary or wages
• Any deductions
• Actual amount paid
• If relevant to the calculation of pay:
• Workers pay and overtime rates
• Number of ordinary and overtime hours worked
• Number of hours worked on a Sunday or a public holiday

Domestic work arrangements have been agreed to very informally in the past with few employer and employee relationships documented in proper, written contracts. As a result of too many domestic workers being exploited, working in unfavourable conditions for long hours and poor pay the Department has regulated this sector. On top of stricter law enforcement, more domestic workers are ready to take an employer to the CCMA in event of a dispute, whether justified or not. Without some formalized agreement between employer and worker, getting a fair outcome becomes much harder.

The Basic Conditions of Employment Act requires employers to conclude a written employment agreement with their domestic workers, gardeners and childminders (including drivers of children) and those who look after the sick, aged or disabled in private homes.

You will receive a contract on registration.

You will need your UIF reference number to transact and make payment to the Department of Labour. Your Domestic Worker and subsequent Domestic Employees will be registered under your UIF Number. Employees do not receive a number of their own. 

UIF contributions can are made directly to the Department of Labour however we can facilitate this for you  Payments for your Domestic Worker can be made in advance to save time and minimize monthly bank charges. Late payments can be back paid. Payments to the Department of Labour can be made by:

• Direct deposit
• EFT
• uFiling

We will provide you with the necessary banking details and payment options.

COID is an anual compulsory payment, which protects the employer from having to pay medical bills for injuries that occur at work. The employer is then also protected against civil suits.

The purpose of the Act is: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 them to be in the coming financial year. After COID 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 and 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.

• 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.

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.

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.

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?

Please note that this date is not related to the date of application of the letter.

This refers to a government initiative to provide financial compensation or medical coverage to workers in case they suffer any work-related injuries or illness. The compensation fund covers a worker who is permanently employed, an apprentice in a farm, a domestic worker, or one who works for a labour agency. To be registered with COID, one has to pay a certain fee. All companies must undertake a COID registration to be eligible to apply for a letter of good standing.

Lack of a letter of good standing shows that the company owes the Compensation Commissioner money and also that your personnel are not covered by the institution.

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.