How to register your Domestic employees for COIDA / WCA
Update and inclusion of domestic employees - Register Now as an Employer!
As per the Department of Employment and Labour Notice 106 of 2021, domestic worker employees must be registered with the Compensation Fund in terms of section 80 of the COIDA Act as amended. Register as an employer and make your contribution to the Compensation Fund in your private capacity.
Section 1(xix)(v) of COIDA, 130 of 1993 was declared invalid on November 19 with immediate as well as retrospective effect.
What does this mean for domestic employees?
The implications of declaring this section of COIDA invalid means that domestic workers/employees are now covered under COIDA, meaning that these employees are entitled for compensation if they are injured, or they contract diseases, while they are on duty.
According to the COID Act, the definition of an employee is a person who has entered, or works under, a contract of service or an apprenticeship or learnership with an employer. This is regardless of whether the contract is expressed or implied orally or in writing, and regardless of whether the renumeration is calculated by time or by the work done, or whether it is cash or in kind.
Which types of benefits are paid in terms of COIDA?
The same benefits which are due to other employees will apply to domestic workers. Benefits which are paid to an injured employee depend on an approved formula in addition to a minimum and maximum compensation which is outlined in Schedule 4 of COIDA.
Temporary Total Disablement (TTD)
TTD is payable to an injured employee when they are booked off for a certain period starting from a minimum of 4 days. They must be booked off by the treating doctor and the purpose for this must be so that the employee can recuperate either from the injuries, or conditions, in respect of the occupational diseases which were suffered at the time of the accident and/or diagnosis.
The maximum period which is payable is 24 months, or two years.
Permanent Disablement Lump Sum
This is paid to an employee who has received their final medical report from their treating doctor. The final medical report must indicate that the employee has reached the maximum medical improvement.
The permanent disablement must be 1 – 30% for the Compensation Fund to consider paying this benefit.
Permanent Disablement Pension
This is paid to an employee who has received a final medical report from their treating doctor. The final medical report must clearly indicate that the employee has reached the maximum medical improvement.
The permanent disablement should subsequently be 31 – 100% for the Compensation Fund to pay this benefit.
What compensation is payable in the event of death?
If an employee dies as result of an injury on duty, or as result of an occupational disease, the following benefits will be considered.
The dependents of employees who have died as result of an injury on duty or an occupational disease on or after April 1, 2019 will be paid a lump sum of R18,251.00.
Widow’s lump sum award
The surviving spouse of a deceased employee will be paid a widow’s lump sum. This amount will be split evenly to the spouses of the deceased employee if there are multiple surviving spouses.
Widow’s pension award
The widow will receive a pension from the Compensation Fund which will only be terminated on the death of the widow.
Child pension award
Children of the deceased employee will be paid a pension until they turn 18 years of age, or when they are married or financially emancipated. This pension can, however, be extended for children who still attend school after they turn 18.
Partial dependency award
This is payable to the parents or siblings of the deceased employee if there is neither a surviving spouse nor child. This is a lump sump which is paid off once to a single individual.
Wholly dependency award
This is a pension award which is paid to the parents or the siblings of the deceased employee who were depending on the income of the deceased employee. This award is paid only if there is no surviving spouse or child.
This award is terminated by the death of the recipient or the expiry of the lifespan of the deceased employee.
Orthotics and Rehabilitation
Bursaries for youth
Bursaries are provided by the Compensation Fund for tertiary studies to youth who are unemployed, dependents of the Compensation Fund pensioners and dependents of those who have suffered fatal occupational injuries between the ages of 17 to 25 years.
Return to work Programme
This involves skills development as well as facilitation of return-to-work for injured or diseased workers who are persons who have disabilities. Injured workers with disabilities may thus apply for funding towards skill development, providing equal developmental opportunities that are aimed at maximising performance, employability, and participation in the labour market.
Assistive devices are provided by the Fund, including wheelchairs and prosthetics to injured workers who have sustained a disability. The process involved with obtaining such assistive devices will be derived from the medical reports and it is preauthorised to ensure that beneficiaries receive a device suited to their medical requirements.
Rehabilitation and re-integration
Rehabilitation as well as reintegration programmes are offered by the Fund with the aim to ensure that the needs of injured workers who have disabilities are addressed accordingly.
Case management ensures that follow-ups are done with workers who have suffered a disability pertaining to both their medical and social rehabilitation needs.
The Fund will process all reasonable medical expenses which are gazetted to Medical Service Providers as well as institutions that were involved in the employee’s treatment. More on this Click here.
Re-opening of the claim
Should further treatment be necessary, if the claim has exceeded two years from the date of the accident, the Fund will re-open the claim if the employee still requires further treatment.
Where an employee has contracted an occupational disease or an injury where chronic medication is necessary, it will be considered by the Fund. It is therefore imperative that the medical practitioner confirm and clearly indicate the need for chronic treatment.
What is the prescription period for claims?
A right to a claim as per the Act will lapse should the accident that happened or the disease, which was contracted on, or after, April 27, 1994 has not been brought to the attention to the Commissioner, the employer, or the mutual association concerned within 12 months from November 19, 2020.
What do these amendments hold for Domestic Employers?
This ruling therefore means that all employers of domestic employees are lawfully required to register as employers with the Compensation Fund. This further also entails that such employers submit the necessary returns as required by COIDA.
What is the Industry Classification applicable?
As according to the classification of industries of the Compensation Fund, domestic employers are classified under Class XIX Personal Services, subclass 1910 with an assessment rate of 0.81.
As per the new classification model, which is effective from March 1, domestic employers are under its own class namely Class M, subclass 2500, at a subsequent assessment rate of 1.04 for 2021 onwards.
What is needed when registering as an employer?
Employers who have domestic employees in their employment can follow the following guidelines when registering with the Compensation Fund.
The documents that must be submitted when registering includes:
- A completed CF-1E Form which is the Application for the registration of the domestic worker employer.
- A copy of the Identification/Passport/Work Permit of the Employer.
- Proof of the Employer’s Residential Address.
- A copy of the Identification/Passport/Work Permit of the Employee/s.
- A copy of the employment contract.
Return of Earnings as per Section 82 and Assessment of the Employer, Section 83
Employers are obligated to submit their ROE yearly as soon as the ROE online platform opens between April 1 and May 31.
The earnings which are declared depend on the salaries, including benefits, which are paid during the period which is under review.
The review period involved is March 1 of the current, and February 28 of the following year. Employers are thus required to declare the actual earnings which are paid in addition to estimating their domestic employee’s earnings for the following year.
The employer must ensure that their email address and any other contact details are captured correctly. Invoices which are forwarded to the email address provided by the employer must be settled within 30 days of the invoice date to avoid incurring interest penalties.
Registration on the ROE online system to submit ROE
Employers can submit their ROE documents online by registering as a user on the Department of Employment and Labour’s online services platform. From here, the employer can select ‘Online Services’, followed by ‘ROE Online’.
Should there be any problems with online submissions, employers are urged to download the prescribed submission form which is posed on the website of the Department.
Claim notifications to the Compensation Commissioner
What is the process involved with claims?
Any claims pertaining to occupational injuries and/or diseases can be submitted manually to the Compensation Fund. Alternatively, employers can make use of the online platform.
All registered employers, including those of domestic employers, must register as users on the CompEasy system, enabling them to submit claims in terms of COIDA.
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