What is Workman’s Compensation (COID) and why do you need it?

Why do you need Workman’s Compensation? Imagine this: you’ve employed your first employee. A later, your employee walks up the staircase leading to his office, eyes fixed into his cellphone screen, he trips and ends up with a serious spine injury.

As the injury occurred when your employer was on duty, you’ll probably have to pick up the medical bill, despite it being a little under R100 000.

You probably can’t dish out that kind of money and your employee needs to have the medical attention he deserves, which is exactly why the Department of Labour created Workman’s Compensation.

How does Workman’s Compensation work?

Workman’s Compensation is a type of insurance, instituted by the The Compensation for Occupational Injuries and Diseases Act. It protects employers from dooming civil claims and enables both casual and full-time employees to claim compensation directly from the Fund for work-related injuries and disability.

It even enables the dependents of an employee to claim compensation in the case of a work-related death.

You pay a yearly fee, determined as a percentage of the amount your business spends on salaries, and in turn the fund will help cover all your employees’ medical bills or compensation in the case of death.

However you need to register first. It can take up to months if you sign up via the Labour Department. That’s why using a service provider like Company Partners, is a great idea. Company Partners will assist you in getting registered in under three weeks.

More reasons to sign up for Workman’s Compensation:

1. It’s the law. The Labour Department requires any employer with one or more employees to register for Workman’s Compensation.
2. It can save you from bankruptcy. Large, unexpected medical bills can easily sink a small business, as hospital fees or ongoing medical expenses may amount to thousands per year.
3. It helps with Tender applications. Tender applications usually require a Letter of Good Standing. As the law requires employers to register for Workman’s Compensation, you can only get a Letter of Good standing, if your Workman’s Compensation payments are up to date.

Important info to keep in mind

• Outdated payments mean no coverage. It’s your responsibility to reregister your company and pay your annual Workman’s Compensation assessment fee. If you don’t the Fund won’t protect you or cover you employees. Company Partners reminds their clients when annual payments are due.
• You might need more than one registration. Different branches within one company usually require different Workman’s Compensation registrations.
• There are exceptions. The Compensation Fund won’t cover the following employees, according to the Compensation for Occupational Injuries and Diseases Act:

• workers totally or partially disabled for less than 3 days;
• domestic workers;
• anyone receiving military training;
• members of the South African National Defense Force, or the South African Police Service;
• any worker guilty of willful misconduct, unless they are seriously disabled or killed;
• anyone employed outside the RSA for 12 or more continuous months;
• workers working mainly outside the RSA and only temporarily employed in the RSA

If you’d like to get your Workman’s Compensation registration in order in record time, click right HERE

You can also opt for the COID Package, which includes a Letter of Good standing, by clicking HERE

You can check out the Labour Department’s basic guide to the Act, by clicking HERE

Or Contact Company Partners today!