Blogs

As an employer in South Africa, do I need to Register for Workmen’s Compensation? Overview To answer the question that many employers in South Africa ask regarding whether they need to register for workmen’s compensation, it is important to consider a few factors first. Who is an Employer? All persons who employ one or more employees are considered employers if they take part in business or farming activities, as according to the Compensation for Occupational Injuries and Diseases Act (COIDA). The client is considered an employer when appointing a contractor to complete a task and therefore, a contractor is considered an employer as they also have employees working for them.

A Contractor’s Health and Safety Responsibilities in South Africa – Part 4 Overview Each person in an organisation plays a vital part towards ensuring a healthy and safe working environment, even if it is the responsibility of the employer to provide such, the maintaining thereof is imperative for continuous health and safety compliance. A contractor’s health and safety responsibilities in South Africa is clear and concise, and it is also necessary to explore the rights that the client has along with the specific safety provisions and safety performance. Client’s Rights Inspections/Investigations The client, or their representing agent may, in any reasonable manner, observe as well as inspect the safety and accident prevention plan of the contractor

Employers appoint contractors for a variety of reasons and work to be conducted on a project. These contractors may also appoint other subcontractors for tasks that need to be done. In the hierarchy of project management, each participant has their duty towards ensuring that the workplace remains safe, healthy, and harm-free for all employees and visitors to the site.

Contractors have a responsibility towards health and safety in South Africa. It is imperative for both employers, contractors, and subcontractors to understand their role to ensure that a safe and healthy working environment exists.

A contractors health and safety and responsibilities in South Africa may often overlap that of the employer, or client, however, there are distinct duties that the contractor must fulfil regarding health and safety in the workplace. The following section explores the duties and responsibilities that the contractor has, starting with health and safety and contractor-specific requirements.

The COID Act serves the purpose of providing compensation should disablement be caused by any occupational injuries and diseases, should these be sustained by employees during their employment. This also includes any death resulting from such injuries and diseases and it provides for matters that are therewith connected.

Is a Contractor in South Africa liable for Workman’s Compensation? Overview As per Section 22 of the Compensation for Occupational Diseases Act, No. 130 of 1993, more commonly referred to as COIDA, all employees have the right to compensation. This compensation comes into play when employees are injured, disabled, or they become ill, as result of a workplace accident or related disease. The simplest definition of an occupational disease is one which arises out of and can be contracted during an employee’s employment, as listed in Schedule 3 of COIDA. In South Africa, the contractor is regarded as the employer, and thus they are liable for Workman’s Compensation. What does COIDA say about Contractors? In broad terms, an employee can be defined as a person who has entered a contract of service with an employer. Where independent contractors are concerned, however, the position is viewed differently. According to Section 89(1)(a) of COIDA, should a person (the mandator) in the course of, or for the purpose of their business, enter an agreement with any other person (the contractor) for either the execution by or under the supervision of the contractor of the whole, or any part, of any work which is undertaken by the mandator, the contractor shall, in respect of his employees who are employed in the execution of the work concerned, register as the employer as according to the provisions of this Act and pay the necessary assessments. In addition, Section 89(1)(b) of COIDA also states that should the contractor fail to meet their obligations in terms of the Act, the employees will be deemed as employees of the mandator. Thus, the mandator shall pay the assessments with regards to the employees in question. What happens if the mandator pays an assessment for which they are not liable? According to Section 89(2) of COIDA, provision is made for events where the mandator has paid assessment or compensation for which they would not have been liable. This should the contractor have complied with their obligations under COIDA.  As such, the mandator may then recover such an assessment or compensation from the contractor. This amount may also be set off by the mandator against any debt which is owed to the contractor in question.

Most work conducted, despite the industry, will require the specialised services of a contractor. Many employers may be unsure as to the process involving using a contractor on their premises, specifically in South Africa. It is for this reason that the information below serves as a guide associated with processes and certain requirements from both the employer and the contractor.

All contractors and subcontractors in South Africa have certain Health and Safety Obligations which must be met. These pertain specifically to routine as well as non-routine activities of contractors and subcontractors who have access to a specific process, workplace, or project which is under the control of the client, or principal contractor.