Compensation For Occupational Injuries & Diseases Act/Coida
Compensation For Occupational Injuries & Diseases Act/Coida
Purpose
- Provides a comprehensive protection to employees who injured in the course of performing their duties.
- COIDA applies to all casual and full-time workers who become ill/injured/ disabled/killed due to a workplace accident/disease
- It excludes workers who are guilty of willful misconduct/workers working outside South Africa for at least twelve months/members of the SA Defence Force/Police services.
- It provides for the establishment of a Compensation Board whose function is to advise the Minister of Labour on the application/provisions of COIDA.
Impact of Compensation For Occupational Injuries & Diseases Act/Coida on business
- POSITIVE/ADVANTAGES
- Promotes safety in the workplace.
- Creates a framework for acceptable employment practices and safety regulations.
- Supply administrative guidelines/mechanisms for dealing with/processing claims.
- Eliminates time and costs spent on lengthy civil court proceedings.
- Employers are protected from financial burden should an accident occur in the workplace
- provided that the employer was not negligent
- Claiming processes are relatively simple.•
NEGATIVES/DISADVANTAGES
- Claiming processes can be time consuming.
- Procedures required by this Act may be costly as paperwork places an extra administrative
- burden on businesses.
- Implementation processes/procedures required by the Act may be expensive.
- Employers have to register all their workers/make annual contributions to COIDA, which may result in cash flow problems.
- Employers may be forced to pay heavy penalties if they are found guilty of negligence/not enforcing safety measures.
- Workers who are temporarily/permanently employed in foreign countries are not covered.
- Domestic/Military workers are not covered.
DISCRIMINATORY ACTIONS ACCORDING TO COIDA
- Employers who bribe/prevent employees from reporting the accident/injury.
- Providing false information about previous, serious accidents/occupational diseases.
- Employers who do not contribute to the Compensation fund.
- Employers who do not allow claims for injuries, discriminates against injured employees.
- Employers that take too long to process claims/delay the claiming process.
PENALTIES FOR NON-COMPLIANCE WITH COIDA
- Businesses can be fined for refusing to lodge the claim/contravening the Act.
- Businesses can be forced to make large payments if it did not take the necessary precautions according to the Act.
- They may be forced to pay any recovery costs required by the Compensation Fund.
- Employees may take businesses to court for not registering them with the Commissioner of the Compensation Fund.
- If businesses are found guilty of any misconduct, they will have to pay large penalties/face imprisonment.
WAYS IN WHICH BUSINESSES CAN COMPLY WITH THE COIDA
- Businesses should provide a healthy/safe working environment.
- Register with the Compensation Commissioner and provide the particulars of the business.
- Keep records of employees’ income and details of work for four years.
- Report all incidents causing death/injury/illness of employees.
- Submit returns of earnings by no later than 1 March annually.
- Levies must be paid to the Compensation Fund.