Big changes to the Compensation for Occupational Injuries and Diseases Act (COIDA) are here, and they hit straight where it matters: workplace safety, claims, and compliance.
President Cyril Ramaphosa fixed most commencement dates on 23 January this year, with selected sections kicking in on 1 February and 1 April.
In an article on Webber Wentzel’s website, employment law specialist Katie Collier and associate director Kalene Watson say the amendments place stricter obligations on employers, expand liability, and introduce a stronger inspectorate framework, while for employees they extend the period for lodging claims, broaden coverage, and strengthen protections.
Sections that started on 1 February restructured the Compensation Board’s composition, appointments, and procedural rules, while sections beginning on 1 April deal with assessment payments, interest, and penalty enforcement.
Most other sections began on 23 January, except section 1(g), which changes how earnings are defined and fundamentally affects compensation calculations, and part of section 1(h), which updates references for military and police personnel still excluded from COIDA coverage.
New inspectorate powers mean workplaces will be closely watched
Chapter XA sets up a new inspectorate framework. The Commissioner can appoint inspectors to check compliance, investigate complaints, and issue compliance orders. Inspectors can enter workplaces, review records, remove documents or machinery, and question staff.
Collier and Watson explain: “Employers must co-operate and answer truthfully; answers may not be used in criminal proceedings except for perjury. Non-compliance may result in compliance orders specifying contraventions, corrective steps, timeframes, and maximum fines. The Commissioner may apply to the Labour Court to convert non-complied orders into court orders.”
Fines replace criminal charges – and they’re hefty
Criminal charges for non-compliance are out; administrative penalties are in.
“The amendments introduce a comprehensive enforcement regime with administrative penalties replacing criminal prosecution for non-compliance,” they say.
Collier and Watson note that failing to report an accident within seven days, not paying the first three months of temporary disablement, or failing to provide required conveyance can trigger penalties based on full compensation plus interest.
Record-keeping failures can attract fines up to 10% of annual assessments, with records required to be retained for five years.
Three-year claim window increases employer exposure
The prescription period for claims has jumped from 12 months to three years. The experts warn this “significantly increases employers’ exposure to latent claims and requires enhanced document retention and incident-tracking protocols”.
Travel liability is also expanded: any conveyance provided by employers counts as work-related, even if the employee acts with serious or wilful misconduct.
Collier and Watson advise employers to review transport arrangements, pick-up/drop-off protocols, and contractor agreements to ensure compliance.
Rehab and return-to-work create opportunities
Chapter VIIA brings new obligations – and benefits. Structured rehabilitation and return-to-work programmes are now required, and assessment rebates may be available for participation.
“The rehabilitation provisions create both obligations and opportunities, requiring structured return-to-work programmes while offering potential assessment rebates for participation,” Collier and Watson note.
Contractors and subcontractors under the microscope
If subcontractors fail to register or pay assessments, their employees are treated as the contractor’s, who then becomes liable.
“Contractor arrangements demand heightened scrutiny, with employers bearing liability where sub-contractors fail to register or pay assessments,” the experts warn.
They advise that employers should require proof of COIDA registration and payments and include indemnities in contracts.
Immediate action is essential
Collier and Watson highlight that employers must act fast: update record-keeping, tighten accident reporting, prepare for inspections, audit temporary disablement processes, implement rehabilitation programmes, and review subcontractor and transport arrangements.
For employers, it’s about managing risk and avoiding penalties. For employees, it’s about knowing their enhanced rights and protections under COIDA’s new framework.
