5. Compensation For Occupational Injuries and Diseases Amendment Act (COIDA), 1997 (Act 61 of 1997)

Question 1

5.1 Purpose of the COIDA

Answer 1

• COIDA applies to all casual and full-time workers who become ill, injured, disabled or killed due to a workplace accident or disease.
• It provides comprehensive protection to employees who are injured performing their duties.
• It provides for the establishment of Compensation Board whose function is to advise the Minister of Labour on the provisions of COIDA.
• It excludes workers who are guilty of willful misconduct or workers working outside South Africa for at least twelve months or members of SANDF or SAPS.

Question 2

5.2 (a) Impact of the COIDA on businesses (ADVANTAGES)

Answer 2

• Promotes safety in the workplace.
• Eliminates time and costs spent on lengthy civil court proceedings.
• Employees do not have to contribute towards thus fund.
• Claiming processes are relatively simple.
• Vulnerable workers like domestic workers are also covered by this Act.

Question 3

5.2 (b) Impact of the COIDA on businesses (DISADVANTAGES)

Answer 3

• Claiming processes can be time-consuming.
• Implementation processes or procedures required by the Act may be expensive.
• Workers who are temporarily or permanently employed in foreign countries are not covered.
• Employers must register all their workers to COIDA, which may result in cash flow problems.

Question 4

5.3 Actions regarded as non-compliance by the COIDA

Answer 4

• Employers who do not contribute to the Compensation Fund.
• Employers who take long to process claims or delay the claiming process.
• Employers who bribe or prevent employees from reporting the accident or injury.
• Compensation that is set off against any debt of the person entitled to the compensation.

Question 5

5.4 Penalties or consequences for non-compliance to the COIDA

Answer 5

• Businesses may be forced to pay recovery costs required by the compensation fund.
• Employees may take the business to court for not registering them with the Commissioner of the Compensation Fund.
• Businesses can be fined for refusing to lodge the claim or contravening the Act.
• Businesses may pay large penalties if found guilty of any misconduct or face imprisonment.

Question 6

5.5 Ways in which businesses can comply with the COIDA

Answer 6

• Submit returns of earnings by no later than 1 March annually.
• Levies must be paid to the Compensation Fund.
  Businesses should provide a healthy or safe working environment.
• Report all incidents causing death, injury, or illness of employees.