HEAD FOR SUCCESS
BUSINESS STUDIES GRADE 12
TERM 1
Topic 1: Impact of recent
legislation on business – response
to demands for redress and
equity.
COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT
(NR 61 OF 1997)
COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT
(NR 61 OF 1997)
(provide for compensation for disablement caused by occupational injuries or diseases
sustained or contracted by employees in the course of their employment)
NATURE of the COIDA:
•This Act replaced the previous Compensation for Occupational Injuries and Diseases Act, Act
130 of 1993.
•The new Act provides for more extensive compensation for employees when they are injured in
the performance of their duties.
•The Act provides for the establishment of a Council for Compensation that must advise the
Minister of Labour with respect to the provisions and application of the Act.
•Employers must contribute monthly to the Compensation Fund from which employees injured in
the workplace, can claim.
•The amount of these contributions depends on:
• The number of employees working in the business.
• How dangerous the industry are.
• The amount of wages received by the employees.
COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT
(NR 61 OF 1997)
PURPOSE of the COIDA:
•Make provision for compensation to employees and their families as a result of
disability to work caused by occupational injuries or diseases sustained in the
workplace, or the death of the employee as a result of these injuries / illness.
•Employees who are injured or contract diseases in the workplace, or family members
of employees who die as a result of injuries / illnesses in the workplace, can claim
compensation from the Compensation Fund.
•The compensation is determined by the nature of the injuries that causes temporary
disability, permanent disability or death.
•Employees must be a bona fide employee of the business and the injury must be
caused as a result of an accident while the employee was busy with the normal
performance of duties.
COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT
(NR 61 OF 1997)
PURPOSE of the COIDA:
•The law applies to all employees, including temporary and permanent employees,
excluding employees of the South African Defence Force, South African Police
Service, domestic servants, contract workers and employees who are temporarily or
permanently working abroad.
•Employees do not have to prove that the employer was negligent, when a claim is
established.
•Employers with more than 20 employees must designate one or more health and
safety representatives after consultation with the employees, while necessary
facilities, support and training as required, must be made available.
•These representatives must irrespective of other duties assigned to them, visit the
place where the accident took place and they must attend any formal investigation
into the accident.
COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT
(NR 61 OF 1997)
PURPOSE of the COIDA:
•Employers must also establish health and safety committees in the workplace and
regularly meet with these committees to improve health and safety in the workplace.
COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT
(NR 61 OF 1997)
ADVANTAGES:
DISADVANTAGES:
Establish administrative mechanisms for dealing
with claims.
The processing of claims can be cumbersome and
time-consuming.
Eliminates the time and costs associated with
proving these types of claims in civil c.
Paperwork places an administrative burden on
businesses, i.e. calculating and paying contributions
to the Compensation Fund.
The processes are relatively simple.
It is a business’ responsibility to handle claims of
injured employees.
Employees are protected because they can claim
for medical expenses after an accident or illness
sustained in the workplace.
If the employer do not comply with prescribed
safety and health measures as prescribed in the
Act, the employer may be held personally
responsible for the payment of medical expenses
of employees.
COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT
(NR 61 OF 1997)
ADVANTAGES:
Employees are protected because they can claim
for medical expenses after an accident or illness
sustained in the workplace.
DISADVANTAGES:
Certain employees are excluded from the Act.
The fact that employers with more than 20
The contribution of employers to the Compensation
employees must appoint a health and safety
Fund, can be a great expense.
committee, and one or more health and safety
representatives and regularly meets with them will
ensure that health and safety measures get regular
attention.
Employers are obliged to ensure safety in the
workplace.
The process and procedures for the establishment
of a claim can be time consuming.
Responsibilities for both the employee and
employer, concerning safety and health in the
workplace is defined in the Act.
An employee can only claim from the Fund if he /
she is absent for more than three months because
of an injury.
COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT
(NR 61 OF 1997)
ADVANTAGES:
Provide a framework for acceptable practices for
safety and health in the workplace.
DISADVANTAGES:
For the first three months of absence, the employer
must compensate the employee at 75 % of the
employee’s basic pay.
COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT
(NR 61 OF 1997)
IMPLICATIONS FOR SMALL AND LARGE BUSINESSES:
•Paper work places an administrative burden on businesses.
•All employers must register with the Compensation Commissioner and provide the
Compensation Commissioner with the particulars of the business.
•Employers must keep records of earnings and other details of employees.
•These records must be kept for four years.
•Employers must furnish returns of earnings by no later than 1 March of each year.
Returns are assessed by the Compensation Commissioner and contributions are
payable once assessments have been completed.
•The Fund covers occupational diseases and workplace injuries; hence it is not
necessary to take out additional insurance to cover occupational injuries and diseases.
COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT
(NR 61 OF 1997)
IMPLICATIONS FOR SMALL AND LARGE BUSINESSES:
• Employers are obliged to report all incidents causing death, injury or illness.
•Employees can claim form this fund for injuries sustained or diseases contracted while:
• Working
• Training
• Completing and apprenticeship
COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT
(NR 61 OF 1997)
RIGHTS AND OBLIGATIONS OF COIDA ON EMPLOYERS:
•Regulates the manner in which occupational injuries and work-related illnesses in the
workplace should be handled.
•The role and responsibilities of the employer is to ensure that the workplace is safe.
•Employers are exempt form claims for injuries and illnesses sustained in the workplace
if the employer ensures that all safety requirements are met.
•The employer may be liable for claims for injuries and illnesses in the workplace if
the employer was negligent regarding safety measures.
•Employers must register with the Commissioner of the Compensation Fund as a
contributor to the Fund.
COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT
(NR 61 OF 1997)
RIGHTS AND OBLIGATIONS OF COIDA ON EMPLOYERS:
•Records of the period of employment of the individual employee, and each
employee’s wages, must be provided to the Commissioner. According to this
information the Commissioner determines how much the employer shall pay to the
Fund.
•The employer must notify the Commissioner within 7 days after the employee
informed him / her that he / she will claim from the Fund, and the employer must
submit the claim within 12 months after the injury to the Fund.
COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT
(NR 61 OF 1997)
RIGHTS AND OBLIGATIONS OF COIDA ON EMPLOYEES:
•Employees must comply at all times to safety measures in the workplace. May not be
negligent.
•Employees have the right to submit a claim against the Compensation Fund for loss of
income and medical expenses if the employee was injured in the workplace or
became ill due to working conditions.
•No deductions from the employee’s wages for the Fund.
•The employee should notify the employer as soon as possible after the injury of his /
her plan to claim from the Compensation Fund.
•The employee as the right to a compensation amount depending on the severity of
the injury or illness.
•No claim can be established when the employee is absent for three days or less
because of an injury. Special paid leave or sick leave is applicable.
COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT
(NR 61 OF 1997)
COMPLIANCE WITH THE PROVISIONS IN THE ACT AND PENALTIES IF THE BUSINESS
FAILS TO COMPLY:
•All employers must register with the Compensation Commissioner.
•Employers must keep records of earnings and other details of employees.
•Employers must furnish returns of earnings by no later than 1 March of each year.
•Returns are assessed by the Compensation Commissioner and contributions are
payable once assessments have been completed.
•The Commissioner of the Compensation Fund appoints inspectors to ensure that
businesses comply with the provisions of COIDA.
COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT
(NR 61 OF 1997)
COMPLIANCE WITH TH EPROVISIONS IN THE ACT AND PENALTIES IF THE BUSINESS
FAILS TO COMPLY:
•These inspectors have special powers relating to health, safety and incidents in the
workplace.
•Employers are obliged to report all incidents causing death, injury or illness.
•Inspectors may investigate incidents and the Chief Inspector may order an enquiry to
be held.
•A number of contraventions of the ACt constitute criminal offences punishable by a
fine or imprisonment or both.
•Each violation of the Act will be handled on merit. Fines will be imposed if the
employer fails to contribute to the Fund, or fail to notify the commissioner within the
prescribed period of a claim, or do not notify the Commissioner regarding
prospective claims.
COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT
(NR 61 OF 1997)
THEREFORE:
If an employee is injured on duty (IOD) the worker must be sent to a medical
practitioner or hospital. One of the following three payment criteria then comes into
operation:
•If the employee is booked off due to an IOD for three days or less, the Compensation
Fund does not pay compensation. Normal paid special leave applies.
•If the employee is booked off due to an IOD for four days or longer, but for less than
three months, the employer pays the injured employee at a rate of at least 75 % f
basic wages, from the first day, until the employee returns to work.
•If the employee is booked off due to an IOD for a period longer than three months,
the employer pays the injured employee at a rate of at least 75 % of basic wages,
for the first three months. Once the three-month period expires, the injured employee
must claim his or her money form the Compensation Fund himself / herself.
COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT
(NR 61 OF 1997)
THEREFORE:
If an employee accidentally gets injured while at work that person will require
medical attention and will need to pay medical bills. Workers’ Compensation will pay
out some of those costs. If the business has not paid its annual fees, Workers’
Compensations will hold the business (owner) liable and the business will be financially
responsible for the costs of the accident and related medical fees.
ie Vergoedingsfonds sal ‘n deel van daardie koste betaal. As die besigheid nie die
jaarlikse fooie betaal het nie, sal die Vergoedingsfonds die besigheid (die eienaar)
aanspreeklik hou en sal die besigheid finansieel verantwoordelik wees vir die koste
van die ongeluk en die verwante mediese koste.