Letter of good standing

[Gene]

Hi
I have a BEE cert, been registered for the trade etc etc..., but now need a "letter of good standing"
As i am the sole employer with no workers- do i need such a letter?- really this just pushes up the price of work with all this "laws and what not"

[Derlyn]

Who needs this letter of good standing from you and if I may ask, what is a letter of good standing ?

[Gene]

It is required by registered Co. that i do work for, you can get it from the employment and labour gov.za

To request a letter of good standing, you can follow these steps:
Ensure COID Registration: Verify that your company is duly registered with COIDA. ...
Maintain Up-to-Date Contributions: Make consistent and timely contributions to the Workman's Compensation Fund. ...
COIDA Certificate Application:

In order to apply for a Letter of Good Standing (LOGS), the following documents and information is required:
CC/Company documents.
Certified ID copies of members/directors.
Employer Reference Number/Notice of Assessment (issued by the Depart of Labour-Compensation Fund)
Total number of employees.

[Dave A]

It is required by registered Co. that i do work for, you can get it from the employment and labour gov.za

To request a letter of good standing, you can follow these steps:
Ensure COID Registration: Verify that your company is duly registered with COIDA. ...
Maintain Up-to-Date Contributions: Make consistent and timely contributions to the Workman's Compensation Fund. ...
COIDA Certificate Application:

In order to apply for a Letter of Good Standing (LOGS), the following documents and information is required:
CC/Company documents.
Certified ID copies of members/directors.
Employer Reference Number/Notice of Assessment (issued by the Depart of Labour-Compensation Fund)
Total number of employees.

And if you are a sole proprietor with no employees?
(Which we gathered was your original cause for posting on the issue).

[Gene]

Yes - sole proprietor, anyway they would not let me work there, so it comes to a good ending for me.
Unlucky for them they do not understand the laws laid out...

[GCE]

Yes - sole proprietor, anyway they would not let me work there, so it comes to a good ending for me.
Unlucky for them they do not understand the laws laid out...

Hi
The company was correct in asking for your Good Standing certificate as without that you become part of there liability and they would be entitled to deduct the amount from monies owed
The problem is that if you happened to have an accident on there premises and for example , lets say you lost the use of your hands , you would be entitled to lodge a claim against them on there workmans comp and claim a monthly contribution paid by workmans comp .
The amount would be allocated against the company's profile and could have a massive cost implication on there annual returns.

A real life example - I had an idiot that did not listen and used an extension ladder incorrectly - Long story short , there was a claim , hospitalization and WC felt there was slight disability .An amount of 2 Million was lodged against my profile and on the next annual submission my return went from 2,4% of wage bill to 8,5% of wage bill - In real terms , I went from 70K to 250K payment to workman comp .

The act is pretty clear how it should work - SO even as a Sole prop with no employees , if you do work for another company that company could become liable as it would be seen as a labour broker , casual employee

As a company the risk is to high to ignore hence the reason they insist on Good Standing Certificates



"employee" means a person who has entered into or works under a contract
of service or of apprenticeship or learnership, with an employer, whether the
contract is express or implied, oral or in writing, and whether the remuneration
is calculated by time or by work done, or is in cash or in kind, and includes-
(a) a casual employee employed for the purpose of the employer's business ;
(b) a director or member of a body corporate who has entered into a contract
of service or of apprenticeship or learnership with the body corporate, in
so far as he acts within the scope of his employment in terms of such
contract;
(c) a person provided by a labour broker against payment 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;
(d) in the case of a deceased employee, his dependants, and in the case of
an employee who is a person under disability, a curator acting on behalf
of that employee;




Mandators and contractors
89. (1) (a) If a person (the mandator) in the course of or for the purposes of his
business enters into an agreement with any other person (the contractor) for the
execution by or under the supervision of the contractor of the whole or any part of any
work undertaken by the mandator, the contractor shall, in respect of his employees
employed in the execution of the work concerned, register as an employer in accordance
with the provisions of this Act and pay the necessary assessments.
(b) If a contractor fails so to register or pay any assessment, the said employees of
the contractor shall be deemed to be the employees of the mandator, and the mandator
shall pay the assessments in respect of those employees.
(2) If a mandator has paid an assessment or compensation for which he would not
have been liable but for the provisions of subsection (1), such mandator may recover that
assessment or compensation from the contractor.
(3) If a mandator has in terms of this section paid an assessment or compensation
to the commissioner, he may set off the amount so paid by him against his debt to the
contractor.
(4) Notwithstanding the provisions of this section, the Director-General may recover
compensation from the contractor instead of from the mandator, and if the full amount
cannot be recovered from the one, the shortfall can be recovered from the other.
(5) A mandator shall not be liable in terms of this section in respect of any accident
which happened at a place which is not on or about the premises on which the mandator
undertook to execute the work, or which is not otherwise under his control or
management.

[felyn443]

If you're the sole employer with no workers, you may not need a letter of good standing for certain things, but it depends on the specific requirements of the contract or work you're doing. Some companies or clients might ask for it regardless. It's definitely an extra cost, but it can be necessary for some projects.

[Gene]

Thank you- i just wondered what happens when you get hurt in a shopping centre - 3 party claims come to mind, anyway good to know

[GCE]

Thank you- i just wondered what happens when you get hurt in a shopping centre - 3 party claims come to mind, anyway good to know

It often happens - People trip over there kid and then try claim against shopping center insurance , same with restaurants , pubs etc
Have seen footage of some of the claims - CCTV is not just for criminals it is also used to watch how someone manages to fall down an escalator