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January 2025
| MARIUS GREYLING, INDEPENDENT AGRICULTURAL MANAGEMENT CONSULTANT |
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THE TERM ‘WORKMAN’S COMPENSATION’ IS THE COMMON NAME USED FOR A COMPLICATED ACT. IT REFERS TO THE COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT (NO. 130 OF 1993, or COIDA) AND THE COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES AMENDMENT ACT (NO. 61 OF 1997).
The Compensation Fund provides compensation for workers who get hurt at work, who get sick from diseases contracted at work, or for death because of injuries or diseases at work. The worker gets compensated from the Compensation Fund for medical costs incurred.
This means that the employer does not have to worry about expensive medical claims. Before complaining about another law to be managed, please note – when you register and adhere to the requirements of this law, it is to your benefit in terms of rands and cents.
Imagine this: One of your employees is using a large angle grinder to cut steel rods and accidentally cuts his leg badly. As the injury occurred whilst he/she was on duty, you will be responsible for the medical costs to attend to the injury, which could be quite a significant amount.
The medical costs will certainly affect your profits negatively, especially if your business is small, and you could be in a difficult position to pay the medical costs of the employee, which is exactly why the Department of Labour created the Workman’s Compensation Fund.
When can a worker/employee claim compensation?
A worker’s dependents can claim in case of death caused by an accident or disease.
Any worker who is employed, whether permanently, casually or seasonally, can claim. The act classifies any person, irrespective of their age, who is employed by an employer for the purpose of his farming activities as a worker. Compensation can also be claimed by the widow/er or dependents if a worker dies because of a work-related accident or disease.
Injuries covered by the Compensation Act are only these that occur because of or at work.
Occupational diseases are illnesses caused by chemical products or conditions that the worker was exposed to at the workplace. Workers can claim compensation, even if they are no longer at the specific workplace.
CONTRIBUTION TO THE FUND
All employers who have one or more employees, must register as an employer and contribute to the Compensation Fund on an annual basis. Depending on the type of farming business, the contribution is plus or minus 0,5% of the yearly total of all salaries. Workers do not pay anything to the fund, so employers cannot deduct any money from workers’ wages for this.
In a previous paragraph, it is described which workers may claim under this act for compensation – thus the farmer should contribute for all those workers, but if he does not, they are not excluded from claiming. The farmer, however, commits an offence by not registering them and can be held liable for a claim.
This act defines a financial year as the period from 1 March until the end of February the following year. Employers must then submit their annual return of earnings, on which they reflect the actual salaries/wages paid to all employees during the preceding year, before 31 March of each year. In terms of this act, employers are compelled to keep record of their employees’ salaries for a period of at least four years. These records must always be available for inspection by an authorised person.
A worker/employee has the responsibility to adhere, to the best of his/her ability, to all the requirements of the Occupational Health and Safety Act to minimise the occurrence of illnesses and injuries.
An employer is responsible to:
Seek advice from a lawyer when needed, as this act is too complicated for everyone to be an expert.
Publication: January 2025
Section: Pula/Imvula
