A quick guide to fast COID Registration and how to get a Letter of Good Standing ASAP.
Please note this page does not serve as legal advice and it’s important to check for any regulation changes at the relevant authorities.
Do you need fast COID Registration so you can get a Letter of Good Standing ASAP? Perhaps you’re just here to understand why you need COID Registration to get a Letter of Good Standing for Contract applications?
Whatever you’re looking for, this page is dedicated to the fastest way to get registered for COID, the fastest way to get a Letter of Good Standing and all the details in-between about the Workman’s Compensation Fund, Return of Earnings and Assessment fees.
First, we’re going to show you how you COID Registration / a Letter of Good Standing as soon as possible and next we’ll dive into specific questions. Here’s a breakdown of the content on this page. Just scroll to the section you’re interested in:
- How to get fast COID Registration
- Different Fast-tracked COID Packages
- Why you need COID Registration before you can get a Letter of Good Standing
- The requirements for a Letter of Good Standing
- Why you need a Letter of Good Standing for Tenders, RFQs and Contracts
- Is COID Registration Compulsory?
- A step-by-step guide to fast COID Registration & getting a Letter of Good Standing with Company Partners
- The benefits of COID Registration
- What the Workman’s Compensation Fund covers
How to get fast COID Registration
We offer fast-tracked COID services for South African entrepreneurs like you. Here’s our timeframes:
- Get a COID Registration Number in only 2 weeks
- Receive a Letter of Good Standing within 10 working days
- Buy a COID Registered Shelf Company that you can use within 24 hours
- We also offer various packages with fast-tracked time-frames to help you get everything done, cost-effectively.
Why does Company Partners offer record-breaking timelines? We have an office located right next to the Workman’s Compensation Office in Pretoria. This is the national authority where all COID registrations in South Africa are processed. Read more about our team of over 40 experts. We work with COID daily. You can read our customer reviews too.
Different Fast-tracked COID Packages
If you can’t find what you need, don’t hesitate to call us and ask.
Why you need COID Registration before you can get a Letter of Good Standing
A Letter of Good Standing is a document that proves your business is in “good standing” with the South African Workman’s Compensation Fund. This letter is issued by the fund itself.
The national fund helps employers pay Compensation for Occupational Injuries and Diseases (COID) if something ever happens to an employee at work or due to work-related activities. It’s a form of national insurance that’s required by the law in most cases.
The requirements for a Letter of Good Standing
Your company is only eligible for a Letter of Good Standing if you:
- Are registered at the Workman’s Compensation Fund;
- Have submitted your Annual Returns (your annual wage/salary expenses);
When you register for the first time, this is included in the registration paperwork.
- Have made all your due payments within your payment arrangement (it can be monthly or annually);
The Fund will send you a Notice of Assessment with the amount that you owe them. This amount is based on your Return of Earnings and the type of work your employees do. Note, when you choose to pay monthly you a Letter of Good Standing that is valid for only a month.
- And when you report all work-related incidents right away.
Why you need a Letter of Good Standing for Tenders, RFQs and Contracts
Businesses don’t want to subcontract or hire companies whose employees aren’t insured by the Workman’s Compensation Fund. Not registering for COID is illegal and they may be liable for your uninsured employees if something happens to them while working.
Is COID Registration Compulsory?
Yes, according to COIDA, the Compensation for Occupational Injuries and Diseases Act, most employers are required to register for Workman’s Compensation. There are a few exceptions. If you’re unsure if it applies to you, you’re welcome to give us a call for basic guidance (not legal advice). Here is the COID Act.
A step-by-step guide to fast COID Registration & getting a Letter of Good Standing with Company Partners
1) You sign up online. Next, one of our dedicated consultants walks you through the timeframe, costs, requirements and paperwork. You can do everything online and telephonically.
2) We represent you at the COID Offices and submit all the application forms. We fill out the necessary forms, including your Return of Earnings and submit everything at the Workman’s Compensation Fund as your representative. We’ll ensure your application is processed as fast as possible and we’ll send you regular updates via email and SMS on the timeframe.
3) Receive COID Registration Number in record-breaking time. Once your application is processed, you’ll receive a Registration number and a Notice of Assessment which tells you exactly how much to pay the Workman’s Compensation Fund in order to cover all your employees. This is called an Assessment. We will show you how to make your Assessment payments.
4) You’re eligible for a Letter of Good Standing. As soon as your fees are paid, we will walk you through the fastest way to get a Letter of Good Standing.
5) Get your Letter of Good Standing and apply for Contracts and Tenders! It’s as simple as that! We’ll notify you when you need to submit your Return of Earnings again and when your Letter of Good Standing will expire. If you have any questions along the way, there’s a toll-free number and a dedicated expert at your disposal.
What are the benefits of COID Registration?
There are two big benefits to COID Registration. The first is the security the Workman’s Compensation Fund offers employees and employers. The second is the Letter of Good Standing, which is often required in Tender, Contract and RFQ applications.
Injuries and diseases may imply significant medical bills. It may also impair an employee’s ability to work while he or she recovers. It can even lead to permanent impairment or a chronic illness which affects an employee or their family’s household’s income. In the case of work-related death, the long-term financial implications for a family is even bigger.
The workman’s compensation fund supports employers in financially preparing for any of these possibilities and it ensures that employees get reasonable compensation for medical expenses or loss of work, if it was in some way caused by work.
Essentially the Workman’s Compensation Fund reduces the financial risk that employers face when employees are harmed or injured by something that relates to the work environment. COID Registration also offers employees, and their families, some form of financial security if something ever happens.
Being registered and up-to-date offers you the opportunity to show potential clients, you take care of your employees and your financial risks. This makes you eligible for various Tenders, Contracts and RFQs.
Who is the Workman’s Compensation Fund for?
- Any Permanent employees
- Any domestic worker working in a boarding house
- Apprentices or trainee farmworkers
- Any workers paid by a labour agency
What does the Workman’s Compensation Fund cover and who can claim COID?
If registered and up-to-date with payments it helps an employer/company cover the following in the case of -related injuries or harm:
- Medical expenses for up to 2 years
Any employee who had medical expenses due to an incident at work, or work-related actions, can submit a claim for up to 2 years of medical expenses. You can base this on the day you were diagnosed or the day of the incident.
- Temporary total disablement (TTD)
If any work-related harm, stopped you from working, or limited your earning capacity, you can typically claim up to a year in lost earnings. You can also submit your medical expenses as mentioned above.
If your work has caused you permanent harm, the Commissioner may approve a longer period based on Permanent disablement (PD). See below.
- Permanent disablement (PD)
If your work impairs your ability to earn long-term, either partially or permanently, you can submit a claim for fair compensation.
If your disability is more than 30% you will most likely receive a monthly pension that’s determined based on the salary you had before you were harmed.
If it’s less than 30%, it’s likely that you receive a one-off sum of money.
- The Funeral costs
The dependents, either the spouse or children under the age of 18, can claim the funeral costs of an employee who has passed away due to work-related accidents or illnesses.
- Death-related costs
In the case of death, the spouse or any dependent children under the age of 18, may submit a claim for compensation that may lead to a pension for the Dependents – if the deceased Employee was a main provider.
What is a COID assessment and how do COID assessment fees work?
An assessment is simply the amount the Workman’s Compensation Fund decide applies to you, consider the risk involved in the type of work your employees do and your total, annual wage/salary expenses.
You get an assessment based on the Return of Earnings you submit to the fund. You can either opt for annual or monthly payments. However, if you choose a monthly instalment, you’re only eligible for a monthly Letter of Good Standing and you need to pay at least 20% upfront.
Your assessment fees are payable to the Workman’s Compensation Fund up to 30 days after receiving a Notice of Assessment.
What happens if an employer is not registered for COID and an employee makes a claim? What happens if ROE submissions aren’t made, paid or paid late?
Generally, you’ll receive a penalty and your employees won’t be covered at all when your payments aren’t up-to-date. This means the employer or company is fully responsible for any compensation. Here are some details and the corresponding legislation that you can look up:
- Late ROE submissions: a penalty – Sect 83(2)
- No ROE submissions: you’ll receive an assessment fee, based on an estimate – Sect 83(6)(a)
- No payment of assessment fees: a penalty and interest fees – Sect 87(1)
- Reporting any incidents late: a penalty
- No registration at the Compensation Fund: when an employee, or his or her dependents, claims for an accident/death, you’ll receive a penalty – Sect 87(2)(a)
- Not offering fair compensation for an employee, or his / her dependents: charged guilty of a legal offence – Sect 81(3)
How to claim from the Compensation Fund?
Either an employer, a harmed employee or his / her dependent can submit a claim to the Compensation Fund the Commissioner. The Commissioner is responsible for assessing the case and what fair compensation would look like.
Fair compensation is based on the incident, the extent of the harm to the employee, his or her medical expenses, his or her dependents and his or her income before the incident.
You can claim even if you stopped working before a diagnosis of a work-related illness. The Commissioner will reference your last salary.
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