COIDA
COIDA stands for the Compensation forOccupational Injuries and Diseases Act and being registered for it works inyour favour. It is based on a no-fault system which means employees areentitled to compensation regardless of who caused the injury or illness. But italso exempts you from liability for injuries or diseases contracted by youremployees in the course of their work. In other words, employees can’t claimdamages from you in those events. Instead, COIDA allows them to claimcompensation for total or permanent disablement and death as well as reasonablemedical expenses arising out of injury for two years. You are required to paythe employee 75% of their normal salary for three months during the time thatthey are injured or ill but the fund pays you back this entire amount andcovers all the relevant medical expenses.
If you are not registered, however, you arenot indemnified. Getting registered involves submitting a WAs2 form, togetherwith a copy of the registration certificate from the Registrar of Companies, oryour ID document, if you are a sole proprietor. Every year before 31 March youwill need to submit a statement of earnings paid to your employees. You willalso be required to pay an assessment tariff, which is fixed according to yourclass of industry.
If an employee gets injured during thecourse of their work or falls ill as a result of their work, they can claimfrom the Worker’s Compensation fund. Dependants of employees can claim if afamily member dies from an accident or disease. Employees wishing to claim willneed to be furnished with one of the WG30, WAs2 or WAc1(E) forms, which theyneed to submit to the Compensation Commissioner for compensation.
UIF
UIF stands for Unemployment Insurance Fundand you need to register for it, whether or not you employ staff. It applies toall employers and workers (except those working less than 24 hours a month),learners, public servants, foreigners working on contract, workers who get amonthly State (old age) pension and workers who only earn commission. The fundmakes short-term provision for individuals who become unemployed, or are unableto work because of illness, maternity or adoption leave. It also providesfinancial relief to the dependants of deceased contributors.
As an employer it is your responsibility toregister with UIF and make the monthly payments. These include a 1% paymentfrom you (based on your employees’ individual salaries). Each individualemployee needs to make a further 1% payment, but it is your duty to deduct thisamount from their salary and pay it to UIF, together with your contribution, ona monthly basis to SARS if you are registered for PAYE or directly to the UIFif you are not. You can register your business by completing a UF8 form andeach new employee needs to be registered using a UI-19 form. These can beobtained from the Department of Labour.
