Statutory Compliance
VC Employee Assist will register your employees for UIF and COIDA. We will also take over the administrative burden of monthly payments to the UIF and annual payments to the Compensation Fund, ensuring legal compliance.
Workman’s Compensation (COIDA)
Household Employees are now considered formal employees under the Compensation for Occupational Injuries and Diseases Act (COIDA).
The changes were signed into law during April 2023 and was published in the Government Gazette on 30 May 2023. Any employee who works more than 24 hours per month in or around your home must now be registered.
Homeowners are required to submit a statement of earnings for all their workers. It is against the law not to submit the earnings, and penalties will be charged.
Many Household Employers want to comply with labour laws, but don’t always know how or simply don’t have the time.
Possible consequences of non-compliance to Workman’s Compensation (COIDA)
If a household employee has a workplace accident or illness and it arises that the employer has failed to register the employee with the Compensation Fund or has failed/refused to contribute to the Compensation Fund, the employer will be liable for the injuries and can face fines and other penalties determined by the Director-General. Employers are further open to civil claims if something goes wrong at the place of employment. Employees can bring a case for the cost of medical aid as well as permanent disablement, compensation for death and even pension payments. Examples of injuries that are likely to occur at your premises may include injuries resulting from household equipment like irons, vacuum cleaners or gardening equipment.
Household employees are now afforded compensation under the Compensation for Occupational Injuries and Diseases Act in line with their constitutional rights to equal access to social security (Section 27(1)(c) and (2) of the Constitution). Although this decision is welcomed in the new constitutional dispensation, it does impose an administrative burden on employers. It is imperative that employers do not delay in registering their domestic employees with the Compensation Fund, to avoid standing liable for workplace injury and penalties.
UIF
What is UIF? The Unemployment Insurance Fund (UIF) gives short-term relief to workers when they become unemployed or are unable to work because of retrenchments, unfair dismissal, end of contract, maternity, adoption and parental leave, or illness. It also provides relief to the dependants of a deceased contributor.
The unemployment insurance system in South Africa is governed by the following legislation:
- Unemployment Insurance Act, 2001 (the UI Act)
- Unemployment Insurance Contributions Act, 2002 (the UIC Act)
These Acts provide for the benefits, to which contributors are allowed, and the imposition and collection of the contributions to the UIF, respectively, and came into operation on 1 April 2002. All employees, as well as their employers, are responsible for contributions to the UIF. However, an employee is excluded from contributing to the UIF if he or she is employed by the employer for less than 24 hours a month.
