How to register your domestic worker for COIDA
The Constitutional Court recently confirmed that domestic workers should be covered by COIDA or the Compensation for Occupational Injuries and Disease Act. This means that they may now claim for injuries, disabilities or illness acquired while on the job – something that previously specifically excluded this sector.
This means that all employers of domestic works (including gardeners) – whether part-time, casual, temporary or full-time – must register themselves and their employees with the Compensation Commissioner.
What sort of protection does this cover offer your employee?
In the event that they fall ill or suffer an injury as a direct result of their employment, they will be able to claim compensation for temporary or permanent disability, assistance with medical bills, orthotic or assistive devices and rehabilitation services.
In the event of their death, their dependants can claim compensation from the fund for funeral expenses and ongoing support in the form of a widow/widower’s pension or lump sum, a child pension or additional dependency award to cover parents, siblings and other family members who may have been dependent on the employee.
By when must I register?
· Going forward – within 7 days of signing an employment contract with a new employee
· For existing employees – as soon as possible. No strict deadline has been set as yet, but employers are being strongly encouraged to register as soon as possible. It seems likely that penalties for non-registration will kick in after the end of March 2022.
· If you fail to register by the deadline (once it is gazetted), you will be opening yourself up to substantial penalties and possible claims in the event your employee is injured at work
How do I register?
Go to this government website – and search for Government Gazette number 44250 or 10 March 2021. Included in this document (pages 12-16) is the CF-1E form - Application for the registration of the domestic worker employer. Print out a copy and fill it in with your particulars.
Prepare the following documents:
· Completed CF-1E form
· A copy of your ID, passport or work permit
· Proof of your residential address
· A copy of your employee’s ID, passport or work permit
· A copy of the employment contract
- Email all of the above documents to RegistrationCF@labour.gov.za or CFCallcentre@labour.gov.za, requesting to be registered as a domestic employer.
What happens after I have registered?
You will be required to submit an annual Return of Earnings for your domestic worker, confirming their income and other benefits over the past year. This will need to be done between 1 April and 31 May each year.
The Compensation Fund will use this statement of earnings as the basis for its calculation of how much is due as the annual fee. It is calculated based on earnings and the risk profile of the job. At present, domestic workers fall under Class M, sub-class 2500, with the risk assessment rate of 1.04
The levy will be calculated using this formula:
Annual earnings / 100 x the assessed risk rate = annual assessment payable.
So for an employee earning R6000 per month – that’s R72 000 per year – the calculation would be as follows:
R72 000 /100 x 1.04 = R748.80
Once the amount due has been calculated, the Compensation Fund will email you an invoice. This invoice must be settled with 30 days, or interest penalties will kick in.
· It doesn’t matter how many hours a week the employee works for you, how you pay them, or what kind of contract you have – you need to register them
· This applies even to employees who work for multiple employers – each of those employers will need to register them
· The amount is payable only ONCE a year, not monthly like UIF
· You may NOT deduct this amount from your employee’s regular earnings
Listen to Pippa Hudson talking to Jose Jorge, a director in the CDH Employment practice about the registration process in the audio below:
This article first appeared on CapeTalk : How to register your domestic worker for COIDA