Chapter 1 - COIDA

Question 1

Outline/Describe/Explain/Discuss the purpose of COIDA

Answer 1

• It ensures compensation for workers who are disables because of occupational injuries, become ill in the course of their employment, or die while they were employed
• The Act applies to all employees, including casual and full-time workers
• Provided employees fulfil the conditions, compensation will be paid to them or their dependants if employees die because of those injuries.
• Employees do not have to prove that there was negligence or fault on the part of the employers in order to claim compensation
• Any employer with more than 20 employees must appoint one or more health and safety representatives after consultation with employees and provide whatever facilities, assistance and training may be required
• Employers must also establish health and safety committees in the workplace, and consult them regularly to and discuss and review measure to ensure health and safety

Dependant: A person who relies on another, especially family members

Question 2

Discuss/Explain/Evaluate the impact of COIDA (advantages and/or disadvantages/negatives) on businesses

Answer 2

Advantages

• The financial burden on the employer is eased as employees receive medical assistance if an accident occurs on the work premises or during work-related activities
• Workers are able to return to work sooner as they have received the proper medical assistance
• Workers have less stress worrying about medical costs, which can increase productivity

Disadvantages

• Cost of implementing safety features in the business could be high
• Paperwork places an administrative burden on businesses, i.e. calculating and paying contributions to the Compensation Fund
• It is the business’s responsibility to handle claims of injured employees

Question 3

Impact of COIDA on workers

Answer 3

Advantages

• The employer pays a monthly levy to the Compensation Fund, based on the number of employees and the level of risk each employee is exposed to
• The employee will receive medical assistance provided there is no other party liable for these costs, such as medical insurance
• Employees can claim from the Compensation Fund even if the employer is bankrupt
• Any compensation to an employee or the family is exempt from income tax

Disadvantages

• There are no distinct disadvantages for the employee
• Often employees are not compensated for the real cost of their injury
• The process of claims can be cumbersome and time consuming

Question 4

Suggest/Recommend ways in which businesses can comply with COIDA.

Answer 4

• Register with the Compensation Commissioner
• Keep and submit a register of records of employees income and details of work for four years
• Be assessed to determine the level of risk the employees have and to calculate the tariff due. The higher the level or risk the higher the tariff will be
• Notify the Commissioner within a specific period of time and submit all the necessary documentation relating to the claim or accident
• Ensure that the premises, equipment, machinery or material are in good working order at all times
• Submit returns of earnings by no later than 1 March annually
• Provide a healthy/ safe working environment

Question 5

Outline/Discuss penalties/consequences for non-compliance with the COIDA

Answer 5

• Any person (employer or third party) who threatens an employee in such a way that deprives him/her of their legal right to benefits in terms of the Act will be found guilty and will have to pay a penalty or face imprisonment
• Employers may be fined for not notifying the Commissioner within the specified time or failing to do so altogether

Question 6

Outline/Explain actions regarded as discriminatory by COIDA

Answer 6

• An employer who does not pay the monthly contributions or submit the employees’ claims for compensation would be seen to be uncaring and thus discriminating against his worker
• If employees fail to take the necessary precautions to ensure the workplace is a safe and healthy environment, then this may be considered discriminatory
• No person may threaten an employee or influence them to do anything that will result in them being deprived of their rights provided in this Act. For example, an employer may not bribe an employee to not report an injury