COID Registration and Letter of Good Standing (Department of Labour)

If you would like any assistance with applying for you COID registration, please use the following link:

https://www.swiftreg.co.za/swiftreg/P...

We at SwiftReg look forward to assisting you. We have a dedicated call center 021-595 44 33 (available during business hours) alternative please browser our website on https://www.swiftreg.co.za/index.aspx for more services.

And now for the video script... :)

In this video I will explain who needs to register for COID and how to get a Letter of Good Standing. But I first need to outline the basics of COID.

COID is a government insurance fund whose purpose is to compensate employees who are injured, or disabled at work and to compensate the dependents of those who die while at work. It protects the employer from any civil claims made by employees which is a major benefit as all parties are effectively covered.

COID or COIDA stands for Compensation for Occupational Injuries and Disease the A stand for the ACT so most people just refer to the registration as COID. Money is collected from the businesses and goes into a compensation fund known as the Workmen’s Compensation Fund which is used to pay out the funds in the case of successful claims.

So who needs to register for COID?
The short answer is every business. There are a few exceptions such as government departments and certain mining and building sectors which are exempt as they have their own separate insurance. But other than that, every business should register for COID.

There are 2 main reasons why companies should register for COID; firstly, for the insurance cover; as many small businesses will not be able to withstand a large unexpected claim such as a medical bill and secondly, many tenders require a COID registration with a Letter of Good Standing. The Letter of Good Standing is a certificate stating that your company is registered for COID and all your payments to the compensation fund are up to date. The Letter of Good Standing gives the business that you are contracting with, peace of mind as they will not be liable for any injuries to your staff which took place on their premises.

So how do I get my Letter of Good Standing?
This is a two stage process; firstly, you have to be registered for COID and have submitted your Return of Earning to the Department of Labour. The Return of Earnings is an estimate of the total of your projected staff salaries (both full time and part time, but excludes owners salaries) for the year in advance. This total projected wage bill will be used to calculate what is due to the compensation fund. The contributions vary depending on the type of business and its risk profile so if the business is in a higher risk sector then the contribution will be more.

The second stage is for the Department of Labour to assess the Return of Earnings. This usually takes about 3 days after which they will send a Notice of assessment with the amount due to the compensation fund. Once you have settled this a Letter of Good Standing will be issued.

Employers are obliged to register for COID within 7 days after the date the first employee starts working; while the return of earnings must be submitted each year on or before 31 March. The letter of good standing is valid from 1 April until 31 March of the following year. So if you apply for COID in say January, your letter of good standing is only valid for 3 months – that is until 1 April when it will need to be renewed.

Just log on to our website and complete the 2 page online application, it really is that simple but if you get stuck don’t hesitate to get in contact with our friendly call centre. I hope this video was helpful so as always remember WE ARE HERE TO HELP

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