COIDA : COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT,1993. AMENDED IN 1997 1
OUR MISSION TO COMPENSATE EMPLOYEES FOR DISABLEMENT CAUSED BY OCCUPATIONAL INJURIES SUSTAINED AND OR DISEASES CONTRACTED IN THE COURSE OF EMPLOYMENT OR THEIR DEPENDENTS FOR DEATH RESULTING FROM SUCH INJURIES AND OR DISEASES AND TO PAY REASONABLE MEDICAL EXPENSES INCURED 2
LEGISLATIVE MANDATE Constitutional Mandate: Mandate of the Compensation Fund (CF) derived from Section 27(1)(c) All South Africans have a right to social security Legislative Mandate: Public entity of the Department of Labour Compensation for Occupational Injuries and Diseases Act no. 130/ 1993 as amended by the COIDA 61/1997 3
DEFINITIONS Employer : Any person, including the State, who employs one or more employees Exempted employer: An employer exempted in terms of Section 84: o National & Provincial spheres of government o 9 Municipalities (certification of exemption) 4
Definitions.. Employee:- A person who has entered into or works under a contract of service or apprenticeship or learner ship with an employer, whether the contract is expressed or implied, orally or in writing and whether the remuneration is calculated by time or by work done or is in cash or in kind, and includes; A casual employee employed for the purpose of the employer s business A director or a member of a body corporate who has entered into a contract of service with the body corporate in so far as he acts within the scope of his employment in terms of such contract A person provided by a labour broker against payment to a client, Excludes domestic workers, gardeners (of private households), sole owner... 5
OBLIGATIONS OF AN EMPLOYER All employers conducting any business in the Republic of South Africa must register with the Compensation Fund Pay annual Assessment (Sec 86) Report all accidents and or occupational diseases (Section 38). W.Cl.2/W.Cl.1. 6
OBLIGATIONS OF AN EMPLOYER Sections 80 to 89 Register as an employer with the Compensation Fund (Sec 80) W.As.2. Keep records of employee s earnings (Sec 81) Furnish annual Return of Earnings (Sec 82) W.As.8.) Assessment for employers (Sec 83) Exempted employers (Sec 84 read with Sec s 31 and 88) Variation of tariff of assessments (Sec 85) Payment of assessments (Sec 86) Penalties for non-payment of assessments (Sec 87) Contributions by employers individually liable and mutual associations (Sec 88) Mandators and contractors (Sec 89) Chief Directorate Communication 2011.00.00 7
REGISTRATION FORM Continued in the next slide 8
REGISTRATION FORM 9
EMPLOYER REGISTRATIONS Every employer must register within 7 days after employment of his first employee. (Sec 80 of the COID Act. A registration form must be completed and can be obtained at any Labour Centre or downloaded on the website. Every part of the registration form must be duly completed Mark with a X the type of the business Part 1 must be completed i.r.o. the business Part 1.1: Date on which the first employee was employed (usually also the start of the business) Part 1.2: Trading Name of company and postal address and code Part 1.3: Physical address where the business office is situated if we need to visit the employer and for claim allocation 10
REGISTRATION FORM Part 2: Must be completed (in respect of) the owner of the business The following documents must be attached: Sole proprietor certified copy of the ID document. Close Corporation Copy of the CK1 and CK2 documents. Company Copy of the CM1 and CM29 documents CIPC documents. Partnership - Certified copy of the ID document. Organisation/Association Copy of NPO certificate (None Profit Organisation). Trust Copy of the Trust certificate + copy of ID document (Letter of Authority). 11
REGISTRATION FORM Part 3. Must specify the nature of the business: A detailed description of the nature of business activities e.g.: For dealer/retail: specify the goods sold/supplied and whether repairs are undertaken For construction: specify the nature of the construction undertaken e.g. building, civil, steel construction For mining: whether underground and / or opencast mining is undertaken For manufacturing: specify what do they manufacture and specify the materials used in the manufacturing process For plant/equipment hire: specify whether operators are supplied Security services whether security guarding is undertaken? Waste Management whether waste removal / collection is undertaken and what the waste management entails? For labour hire/brokers: Specify to which industries the labour is supplied and the number of employees supplied to each industry For cleaning: Specify if it is industrial or office cleaning window cleaning inside or outside, street cleaning, garden services etc. 12
REVENUE GENERATION The CF generates its revenue from assessments paid by registered employers on the basis of a percentage of the annual earnings of their employees. This rate is fixed per industry subclass. 23 Industries 102 sub-classes Assessment rates are reviewed annually (based on the claims experience) The Act, however, makes provision for a minimum assessment to ensure that the assessment is not less than the administrative cost incurred. 13
ASSESSMENT YEAR The assessment year is named according to the year it starts in. e.g. 2015 ROE = 1 March 2015 to 29 February 2016 Annual return of earnings, which reflect actual earnings paid to all employees up to the maximum for the preceding year, as well as provisional earnings, up to a maximum for the current year. 14
RETURN OF EARNINGS In the beginning of each year the annual return of earnings is systematically created and uploaded on our website. Employers must file online on or before the cut-off date, which is 31 st March of each year (or unless the commissioner grants an extension) which will be communicated to all stakeholders. 15
DECLARATION OF EARNINGS 16
DECLARATION OF EARNINGS In a case where the company is closing down or sold, the final declaration of earnings must be manually submitted to the commissioner to bill and deregister the company If you encounter any problems please send an email to ROE Support Team Email: roe@labour.gov.za Call Centre: 0860 105 530 Alternatively, the manual ROE form can be downloaded from the website. 17
RETURN OF EARNINGS FORM RETURN OF EARNINGS W.As. 8 2015 To be completed and submitted by all employers to: Assessments Division COMPENSATION FUND * 955, Pretoria, 0001 The Hon., Prof., Dr., Rev., Messrs., Mr., Ms., COIDA, 1993 (ACT 130 OF 1993) Section 82(1) Compensation House Cnr Hamilton Street & Soutpansberg Road, Arcadia ( Call centre 0860105350 Only original document will be accepted. Information relating to earnings (staff costs) should be kept for at least 4 years. REFERENCE/CA NUMBER BP NO. Year of assessment 01 March 2014 to 28 February 2015 Date of issue THIS FORM CAN ALSO BE SUBMITTED ONLINE: www.labour.gov.za REFER TO THE ENCLOSED GUIDELINES BEFORE COMPLETING THE RETURN. DO NOT SUBMIT THIS FORM IF REGISTERED ONLINE PART 1: EMPLOYER PARTICULARS This return must be submitted on or before 31 May 2015 Complete the white blocks only where particulars have changed. Use block letters where applicable, and mark with an X 1.1 Co/CC Registration name (per CIPC). Sole Proprietor: Name of owner. 1.2 Trading name (if applicable) 1.3 Co or CC number. 1.4 Employer's ID number. 1.5 Unemployment Insurance no. 1.6 Postal address. 1.7 Physical address. 1.8 Telephone number. 1.9 Fax number. 1.10 Cell phone number. 1.11 E- Mail address. Region Code Code Postal code: Number Number continued in the next slide 1.12 Particulars of operation. a) Describe the nature of business/ farming activities/ goods sold or manufactured or services rendered. b) Describe the materials used in the manufacturing of goods. c) Describe the nature and extent of construction/erection undertaken. d) In case of farming, Livestock Tillage indicate the nature Mixed farming: thereof. %Livestock % Tillage Do you use tractors and/or Yes e) No power-driven saws. 1.13 Status of business. a) Ongoing (under same ownership and control as previous year.) Yes: No: Ceased. Date: b) Y Y Y Y M M D D c) Sold with: Date: Y Y Y Y M M D D Assets only. Yes: No: Assets & liabilities. Yes: No: Name & Address of New owner / CC or Co. d) Liquidated/Sequestrated Date: Y Y Y Y M M D D By Court Order Quote Estate no. e) Owner deceased. Date: Y Y Y Y M M D D NO 18
RETURN OF EARNINGS FORM PART 2: Reference number: Declaration 01 March 2014-28 February 2015 I, the undersigned confirm that the number of employees and their earnings (staff costs/salaries & wages) for the 12 months ending 28/02/2015 are as follows: Actual Earnings:01/03/2014-28/02/2015 Provisional Earnings:01/03/2015-29/02/2016 Month Number of employees and amount of earnings (staff costs/salaries & wages) per month paid to all employees (excluding directors of a Company or members of a close corporation) up to a maximum of R 332 479 per person for the above period. Number of directors/members and amount of earnings (staff costs/salaries & wages) per month paid to directors of a Company or members of a Close Corporation up to a maximum of R 332 479 per person for the above period. Number of employees and amount of earnings (staff Number of directors/members and amount of earnings (staff costs/salaries & wages) per month expected to be paid to all costs/salaries & wages) per month expected to be paid to directors of a employees (excluding directors of a Company or members of Company or members of a Close Corporation up to a maximum of R 355 a close corporation) up to a maximum of R 355 752 per 752 per person for the above period. person for the above period. Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Total Number Earnings - (Rands only) Number Earnings - (Rands only) Number Earnings - (Rands only) Number Earnings - (Rands only) FINAL EARNINGS PAID ESTIMATED EARNINGS Total earnings of both employees and Directors/Members: Total cash value of free food and/ or quarters. (if applicable) in Rands. GRAND TOTAL OF EARNINGS State in words the grand total of earnings: State in words the grand total of earnings: Give reason where earnings differ by 30% from the previous year: Declaration by employer: Name: Designation: SIGNATURE: Date: Telephone No: e-mail Address: Company Banking Information: Bank Name: Account No: Branch Code: Branch Name: Type of Acc: NB: IT IS THE RESPONSIBILITY OF THE EMPLOYER TO ENSURE THAT THE INFORMATION DECLARED IS ACCURATE AND CORRECT, THEREFORE NO REVISIONS WILL BE ENTERTAINED IT IS COMPULSORY FOR BOTH EMPLOYER AND AGENT / PAYROLL ADMINISTRATOR TO SIGN THE DECLARATIONS ABOVE. IT IS A SERIOUS OFFENCE TO MAKE A FALSE DECLARATION OR FAIL TO RENDER A RETURN WITHIN THE PRESCRIBED PERIOD. Declaration by Agent/Payroll Administrator: Name: Designation: SIGNATURE: Date: Telephone No: e-mail Address: Office use only - Codified. THE ONUS IS ON THE EMPLOYER TO NOTIFY THE COMMISSIONER WITHIN 7 DAYS OF ANY CHANGES IN THE PARTICULARS SO FURNISHED (E.G NATURE OF BUSINESS OR CLOSURE OF BUSINESS;ETC) In the event that more than one return is furnished for the same assessment period this office will accept the first return as final Criminal proceedings will be instituted for misrepresentation of facts 19
NOTICE OF ASSESSMENT/INVOICE 20
REVISION OF AN ASSESSMENT The Fund will not entertain any request of revision of assessment submitted outside the allowable period of 30 calendar days. Reasons why the earnings was incorrectly submitted and certified to be correct. An Affidavit by owner/ director of the Company confirmed by a Commissioner of Oath or a sworn statement. Audited financial statements /independently reviewed financial statements of the Company. Detailed payroll with a list of employees and different type of earnings/fringe benefits for each employee. Reference number with UIF (Unemployment Insurance Fund). SARS EMP501 for the period in question. Power of Attorney for Company Representation. 21
EXEMPTED EMPLOYERS (section 84 and 88) SAPS National Defence Force Government Hospitals/ Government Schools. (The body Corporate of the school must register for the employees paid by the school/ body corporate) 9 Municipalities e.g. City of Cape Town, City of Tshwane, Buffalo City Municipality, etc. No assessments are raised for exempted employers. An annual administration fee is payable to CF according to the claims submitted. 22
PAYMENT OF ASSESSMENTS Employers must pay within 30 days of notice of assessment Employers may apply in writing to settle assessments in instalments not exceeding 12 months 20% of balance due required upfront for instalment arrangements Should the instalment fall overdue, the full amount becomes due and payable immediately 23
CHANGES An employer shall within 7 days of any changes in the particulars (nature of business, deregistration, address change, trade name change, liquidation etc.) so furnished notify the commissioner of such change. (Sec 80(3)) All requests for changes must be done by the employer himself on a letter head of the company. The employer s request must be accompanied by an Affidavit done by the employer or the director of the company as listed on the COR39 from CIPC For the commissioner to effect change on the subclass, the employer s request must be accompanied by audited financial statements /independently reviewed financial statements of the Company. Please note that if the employer is represented by an accountant or consultant etc.,proof of the Power of Attorney is required 24
FAILURE TO COMPLY Failure to comply may result in: Penalty will be imposed for late submission of ROEs (Sec 83(2) - 10%) Estimations will be done if no returns (ROEs) are submitted (Sec 83 (6)(a). Penalty on non-payment of assessments (Sec 87(1) - 10%) Interest on late payment of assessment (prevailing prime rate) Penalty for late reporting of accidents A penalty is imposed where an employee meets accident/death and employer is not registered with CF (not exceeding full compensation payable to the employee) (Sec 87 (2)(a)) An employer who fails to comply with a provision of this section shall be guilty of an offence Sec 81(3) 25
MUTUAL ASSOCIATIONS Existence: Two mutual associations operates under a licence issued by Minister of Labour for specific period (renewable after a 3 year period) Employers in specific classes may transfer to mutual associations and their subclass will be changed to RAND/ FEMA and their assessments will be processed and paid to the relevant mutual associations. Rand Mutual Assurance Company Ltd (Rand Mutual) - Class 4 (mining industry) - Class 13(iron and steel industry) Federated Employers Mutual Assurance (FEM) - Class 5 (Building and construction) 26
CONTRACTORS AND SUB- CONTRACTORS Contractor or sub contractors to register with the Fund and pay assessment Failure to comply with the COID Act by the sub contractor will make the mandator or main contractor to be responsible for any claims from the sub contractor s employees The contractor may recover such payments direct from the sub contractor 27
LETTER OF GOODSTANDING The letter of good standing can only be generated online 24/7. log onto https://cfonline.labour.gov.za/onlinesubmissions/ Username & Password it s the same as the one used for submitting returns of earnings NB: The letter of good standing can be validated using the certificate number 28
LETTER OF GOODSTANDING CRITERIA TO QUALIFY FOR LETTER OF GOOD STANDING: 1. Employer must be registered with the Fund as per Section 80 of the COID Act, 2. Employer must have filed all ROEs as per Section 82 of the COID Act, 3. Employers must be fully assessed as per Section 83 of the COID Act, 4. Employers must have paid/ settled all outstanding debt as per Section 86 of the COID Act. NB: Letters of good standing are issued on a month to month basis to employers that have entered into an instalment arrangement. 29
A VALID LETTER OF GOOD STANDING 30
Thank You 31