Workmen’s compensation and CompSol

workmens compensation

Workmen’s compensation and CompSol

Who should register for Workmen’s Compensations?
All employers must be registered with the Compensation Fund from the date their first employee was employed.

The Act defines “Employer” as follows: “Any person, including the State, who employs an employee.”

What is Workmen’s Compensation?
Compensation for injury on duty matters are regulated in South Africa through the Compensation for Occupational Injuries and Diseases Act, no.130 of 1933, and referred to as COIDA.

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 the matters connected therewith.”

Do all employees qualify for Workmen’s Compensation?
COIDA specifically EXCLUDES the following as employees

  • Domestic employees employed in private households.
  • Anyone receiving military training.
  • Members of the SANDF (South African National Defence Force) while “on service in defence of the Republic”.
  • Members of the SAPS (South African Police Service) while “on service in defence of the Republic”.
  • Any worker guilty of wilful misconduct, unless seriously disabled/killed;
  • Workers working mainly outside RSA – only temporarily in RSA

Why should a company register for Workmen’s Compensation?
The Employers are legally responsible to report all injury on duty/occupation disease to the Compensation Fund and send all the related and required information.

COIDA prevents employees covered by the Act from suing their employers for damages in terms of common law. Any company not registered with the Compensation fund becomes liable for medical expenses.

As part of their Health and Safety requirements, most companies require that contractors should be able to provide proof that they are in Good standing with the Compensation Fund. Being registered with the Compensation Fund will prevent loss of revenue.

What does Workmen’s Compensation cost the company?
Before 31 March each year, all employers (including contractors) must submit a statement of earnings paid to all their workers from the beginning of March the previous year to the end of February of current year.

The annual assessment fee is calculated on workers’ earnings and an assessment tariff based on the risks associated with the type of work being done.

Formula: Assessment fee = total workers’ earnings ÷ 100 x assessment tariff.

How do I register for Workmen’s Compensation?
Employers are required to complete the Compensation Fund registration form (W.As.2) within 7 days after 1st employee was employed.

The employer supplies demographic info on business and gives a DETAILED description of nature of business. Employer declares estimated (expected) earnings to be paid out until end of Feb. next year.

The Compensation fund then determines the appropriate class and sub-class for employer depending on the description of the Nature of Business. A registration number is allocated to the employer. Employer receives notice of registration and registration number.

How do we claim back from the Workman’s Compensation Fund
It can be a protracted and frustrating process, especially if you complete a form incorrectly or exclude some fields or facts. When it comes to processing and managing claims, CompSol is the leader in South Africa.

In 2017, CompSol handled 43% of workman’s compensation claims in South Africa and has over 1 200 medical services providers as clients, helping to ensure that injured workers are treated quickly and effectively.

CompSol’s eCOIDA is an integrated, paperless and real-time system which seamlessly links the Employee, Employer, Medical Service Provider and the Compensation Fund.