WHAT TO DO WHEN . . . . You Are Not Sure About Workmen’s Compensation? – Part 1
By Nikki Viljoen – N Viljoen Consulting CC.
There seems to be a great deal of confusion about who must register, where to register, how to register and when to register, so I thought it would be a good idea to try and demystify it.
So here are the important factors to consider as a Business Owner. Who Must Register With The Workman’s Compensation Fund and How Does One Register:
As a Business Owner in South Africa, if you employ a staff member (and that includes you – so if the only staff member is you) then you need to be registered. The Compensation for Occupational Injuries and Diseases (COID) Act of 130 of 1993 defines and employer as:
“Any person, including the state, who employs an employee and includes:- Any person controlling the business of the employer;
- If the services of an employee are lent or temporarily made available to some other person by the employer, such employer for such period as the employee works for that employee;
- A Labour Broker who against payment provides a person to a client for the rendering of a service or the performance of work and for which service or work such person is paid by the Labour Broker.”
Well that is pretty straight forward – so for example, I as Viljoen Consulting CC do not have any staff members on the one hand, but ‘pay’ myself a salary on the other hand (to get the best tax benefits), so I will now need to Register for Workman’s Compensation.
The form that is required to be completed is the prescribed (Form WA52 – which can be downloaded from the Department of Labour site or requested from myself) and the employer is required to submit a separate form for each business he/she has.
What Records Are To Be Kept By the Employer
The Act says that the employer has to keep a register or some form of record of the earnings and particulars of employment. This record must be kept for a period of 4 (four) years.
The Act also says that this record must be kept open for inspection, not only for a representative of the Health & Safety fraternity but also for the Health & Safety Representative who must be elected in terms of the Act or also in terms of the Mine & Health Safety Act 29 of 1996 or for any of the shop stewards or similar Union officials.
Next week we will have a look at when to submit the return of earnings, what an assessment is and who may be exempt from being assessed.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849
083 702 8849 or nikki@viljoenconsulting.co.za
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