How to get a COIDA letter of good standing
Main contractors, mines, corporates and government ask for it before you can start work on site. A COIDA letter of good standing proves your workers are covered if they are injured on the job. Here is how to get one and keep it.
What COIDA is
The Compensation for Occupational Injuries and Diseases Act (COIDA) requires employers to register with the Compensation Fund, run by the Department of Employment and Labour, and pay annual assessments. If a worker is injured or falls ill because of work, the Fund compensates them. In return, the employer is protected from being sued for it.
Who must register
Every employer with one or more employees, including part-time and casual workers, must register. Sole proprietors and directors are not automatically covered as employees, but you still need to register once you employ anyone.
The Return of Earnings
Every year you submit a Return of Earnings (ROE) declaring what you paid your employees. The Fund uses it to calculate your assessment, based on the risk class of your industry. Submitting on time and paying your assessment is what keeps you in good standing.
Getting the letter
Once you are registered, your ROE is submitted and your assessment is paid, you can request a letter of good standing from the Compensation Fund. It has an expiry date, so keep it current: an expired letter can keep you off a site or out of a tender.
Keep a compliance folder
Clients usually ask for the same set: CIPC registration, tax compliance PIN, COIDA letter and B-BBEE affidavit. Keep current copies in one folder and you can respond to opportunities the same day.
Common questions
What is a COIDA letter of good standing?
A letter from the Compensation Fund confirming that an employer is registered, has submitted its Return of Earnings and paid its assessment, so its workers are covered for work injuries and diseases.
Who needs to register for COIDA?
Every employer with at least one employee, including part-time and casual workers, must register with the Compensation Fund.
Does a COIDA letter expire?
Yes. Letters of good standing carry an expiry date. Submit your Return of Earnings and pay your assessment each year to keep getting a current letter.