To regulate employees compensation who are injured or contract illnesses and diseases at work, employers are subject to regulations outlined in the Compensation for Occupational Injuries and Diseases (COID) Act. Part of these regulations states that employers must register for the Compensation Fund.
Is COID Registration Compulsory?
Given that not every industry is at high risk of having occupational injuries and diseases, some businesses may think that they are exempt from registering for COID. On the contrary, every employer in South Africa – whether the employer has part-time or full-time workers – must register for COID.
Being registered for COID is a guarantee that employees are safe in the workplace and ensures that if an employee injures themselves while working, the Compensation Fund will pay the necessary expenses. These expenses can include early retirement, funeral costs and medical expenses.
Furthermore, to access a letter of Good Standing – which is integral if you want to apply for tenders – an annual assessment of your COID registration is necessary.
The only exceptions to this are the SAPS and the SANDF, in addition to employers of domestic workers and employees who work outside of South Africa’s borders for periods greater than 12 months.
Additionally, some sectors are exempt from paying assessment fees because they are registered with other mutual associations that regulate workplace injury and disability compensation.
Therefore, if your business is registered with one of the following approved mutual associations, paying your COID assessment fee is unnecessary. The associations include:
- For the mining industry: Rand Mutual Assurance Company (RMA)
- For the building industry: Federated Employers Mutual Assurance (FEMA)
The Compensation Fund Registration Requirements
You have seven days from the day you hire your first employee to register with the Compensation Fund to be compliant with COIDA. Irrespective of the industry your business is in or if you’re a trust, sole proprietor or PTY, if you have either one full-time or part-time employee, you need to register for the Compensation fund.
How to Apply for COID Registration Via Post
Within the first seven days of hiring your first employee, you will be required to register for COID.
To complete registration, you will need to submit form W.As2 along with the accompanying documentation (listed below) to:
PO Box 955
Pretoria
0001
After receipt of the form and relevant documentation, the Compensation Commission will send you an employee’s 12-digit registration number beginning with 99 via post. You can expect this process to be completed within 21 business days.
It’s also important to note that every new branch of business is required to register for COID unless a prior arrangement has been made with the department of labour.
COID Online Registration
Considering that most South African employers will need to register for COID, you should consider familiarizing yourself with the online registration.
The process is fairly standard but will require some documentation. You can follow the step by step guide below for a complete understanding of how to complete your COID online registration.
Step 1: Visit the Department of Labour’s Compensation Fund Website
To start the process, visit https://cfonline.labour.gov.za. The website only allows you to register your business. To do this, click on “Register as a DOL online User” on the left side of the screen.
Step 2: Fill In The Online Form
After clicking “Register as a DOL online user,” you will be redirected to a signup sheet. You will be required to input your ID number, and the form will populate your first name and surname. Then you’ll need to add your email address, cell number and telephone number. If you don’t have a landline number, you can enter an alternate number in this field.
Be sure the information you entered is correct, as you will not be able to make any changes once you click submit.
Step 3: Submit Your Form
Once you’ve clicked “Submit”, the Department of Labour will send you a password to the email address you provided to ensure you’re able to login to your profile. You’ll be redirected to the same webpage, but from there, you can fill in your username and password and gain access to the COID online registration portal.
Documentation Required To Complete The Compensation Fund Application Process
Whether you decide to complete the Compensation online or via post, you will need to submit the following documentation. You can prepare these documents in advance and either attach them to your form.
Businesses:
Businesses will be required to attach the following documents to their online application:
- Copy of CIPC Certificate
- Proof of UIF Registration
- Copy of IDs for the directors or owners
- Proof of Business Address
Sole Proprietors:
Sole proprietors will need to attach these documents to the compensation fund application form:
- Copy of ID for the owner/director
- Proof of Registration for UIF
- Proof of Business Residence
Non-Profit Organisations:
To register for the Compensation Fund as an NPO, you will be required to attach the following documentation to their registration form:
- Copy of CIPC Certificate
- Proof of Registration for UIF
- Proof of Business Residence/Address
- Copy of NPO Certificate
- Copies of Directors IDs
If you are registering online, you can send these documents along with the completed W.As2 form to RegistrationCF@labour.gov.za.
If you are mailing in your application form, you can send these documents along with the W.As2 form to:
PO Box 955
Pretoria
0001
Also Read: How to Register on EVDS (Electronic Vaccination Data System)
Paying The Annual Assessment Fee for COID
Once you’ve completed the registration process, you will be liable to pay the Compensation Fund annual assessment fee. This fee is based on the income of the employee.
Employers will receive a notice via mail to their business address. The notice will include how much you owe in compensation fund assessment fees and will be delivered at the beginning of April each year. The notice will also include a deposit slip with reference details. Then employers can either pay by cheque, online banking or direct deposit from any ABSA bank.
If you would like to know more about the Compensation Fund assessment fee or have any queries about the process, you can contact the Compensation Fund on 0860 105 350 or email cfcallcentre@labour.gov.za or cfenquiries@labour.gov.za.
