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Why a Contractor in South Africa must register for Worker’s Compensation
All employers, as per the Compensation for Occupational Injuries and Diseases Amendment Act No 61 of 1997 (COIDA), must register for worker’s compensation. Any employer who fails to do this is guilty of a criminal offense.
As a result of the implementation of COIDA, the general rights that employees had under common law in suing their employers for losses suffered while employed, have been removed.
The purpose of COIDA in South Africa is to provide employees under a contract of employment with compulsory compensation, although there are a few exceptions, should death or personal injury occur during employment.
This is one of the main reasons why a contractor in South Africa must register for worker's compensation.
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Events that are covered under COIDA include the following:
- Accidents that arise out of, and in, the course of the employment of the employee, which result in either injury, illness, or death.
- Specific occupational diseases which were contradicted in the workplace as a result of exposure of the employee to certain agents or conditions found in the work environment, and
- Fatal cases where an employee has died as a result of an incident or accident that occurred while they were on duty.
What is FEM?
The Federated Employer’s Mutual Assurance Company Limited., more commonly known as FEM, was established as a mutual insurer in 1936. With the introduction of the Worker’s Compensation Act in 1941, FEM was provided with a license in transacting workers’ compensation insurance, specifically in the Maintenance and Outsourced Contractor industry.
FEM has provided its services for more than 70 years and operations are confined to the insurance of employers against certain liabilities under COIDA. In addition to covering the Maintenance and Outsourced Contractor industry, FEM also works alongside the State’s Compensation Fund, managed by the Compensation Commissioner.
Through the insurance provided, employees or their dependants are compensated after injuries that have arisen from occupational accidents or injuries that they have suffered during their employment.
FEM can operate in the Maintenance and Outsourced Contractor industry, Class V of the Department of Employment and Labour’s (DoEL) Classification of Industry. With this, it effectively covers the broader context of building/construction as well, including, but not limited to:
- Building operations
- Roofing
- Painting and plastering
- Swimming pools
- Electrical
- Flooring
- Tiling
- Plumbing
- Tunnelling, and more.
Why must employers register with FEM?
New employers who form part of the Maintenance and Outsourced Contractor industry can apply to register with FEM. Those, who are in good standing, can transfer their liability from a State fund to FEM as well.
In registering with FEM, employers can enjoy the following benefits:
- Ease of Access
- Letters of Good Standing
- Information – such as monthly reports, health, and safety information, and more.
- Merit Rebates
- Assessment Rates – which are the same as the Compensation Commissioner.
- Administration – with representatives of FEM who help employers in obtaining the required medical, and other, reports without having to pay additional costs.
How can SafetyWallet help Employers and Contractors’ Health and Safety Compliance?
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Comments (5)
Through the insurance provided, employees or their dependants are compensated after injuries that have arisen from occupational accidents or injuries that they have suffered during their employment.
2022-09-19 11:39:47Are labour only subcontractors required to register with COIDA. If they don't have employees at the time of appointment?
2024-09-10 19:12:37Hi Monnasilo Labour-only subcontractors are generally required to register with the Compensation for Occupational Injuries and Diseases Act (COIDA) even if they do not have employees at the time of appointment. The registration is necessary to ensure that they are compliant with the legal requirements for workplace safety and compensation for any potential injuries that may occur during the execution of their work. If a labour-only subcontractor does not have employees at the time of appointment, they may still be required to register to ensure that they are covered under COIDA for any future employees they may hire. This registration helps protect both the subcontractor and the client from potential liabilities related to workplace injuries.
2024-09-11 07:29:18I was injured on duty at work for some reason I have traveled to hospital for 12 months and I used my own bedroom money to go to hospital soda company never help me to take me for my doctor visits so now I have given them the invoices of all the 12 months and they say I have to claim it from SARS I have never received anything from the company since this injury a year ago please I need assistance legal assistance with this injury on duty please thank you will you come back to me 0714349288
2023-09-03 20:07:08Dear Braam Thank you for your query via our comments, and your time chatting with me earlier... As discussed, you get your WCA claim number from your employer, then call WCA and request assistance... You can also ask your employer to contact us for assistance with this claim... My email: basil@safetywallet.co.za
2023-09-04 10:06:11Can a new company join you with no employees yet cause l just registered the company with cipc it a industrial cleaning company
2023-09-20 22:39:35Dear Andile You can subscribe your business to SafetyWallet yes... For WCA, you only register when you get your first employee as you will have to submit a ROE... If you need assistance, please feel free to contact me - basil@safetywallet.co.za
2023-09-21 08:03:27