Results 1 to 10 of 10

Thread: Domestic workers now need to be registered with the Compensation Fund

  1. #1
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12

    Domestic workers now need to be registered with the Compensation Fund

    The Compensation Fund Commissioner has issued a notice (attached to this post) that informs us that domestic workers are now covered by the Compensation Fund, and employers of domestic workers must register and submit annual returns to the Compensation Fund.

    According to the Notice, on 19 November 2020 the Constitutional Court declared section 1(xix)(v) of the Compensation for Occupational Injuries and Diseases Act 130 of 1993 invalid, with immediate and retrospective effect to 27 April 1994. The consequence is that domestic workers can claim against the Compensation Fund for work related injuries and diseases. It also means all domestic worker employers must register with the Compensation Fund.

    Registration forms are included in the notice.

    One question that comes to mind is how is the issue of minimum assessments going to be dealt with? Has a special dispensation been put in place for employers of domestic workers?

    Coida-update-domestic-workers.pdf

  2. #2
    Diamond Member tec0's Avatar
    Join Date
    Jun 2009
    Location
    South Africa
    Posts
    4,624
    Thanks
    1,884
    Thanked 463 Times in 410 Posts
    Blog Entries
    3
    Quote Originally Posted by Dave A View Post
    The Compensation Fund Commissioner has issued a notice (attached to this post) that informs us that domestic workers are now covered by the Compensation Fund, and employers of domestic workers must register and submit annual returns to the Compensation Fund.

    According to the Notice, on 19 November 2020 the Constitutional Court declared section 1(xix)(v) of the Compensation for Occupational Injuries and Diseases Act 130 of 1993 invalid, with immediate and retrospective effect to 27 April 1994. The consequence is that domestic workers can claim against the Compensation Fund for work related injuries and diseases. It also means all domestic worker employers must register with the Compensation Fund.

    Registration forms are included in the notice.

    One question that comes to mind is how is the issue of minimum assessments going to be dealt with? Has a special dispensation been put in place for employers of domestic workers?

    Coida-update-domestic-workers.pdf
    What will be the "new" responsibilities for the employer be? For what can the employer be held liable for?
    peace is a state of mind
    Disclaimer: everything written by me can be considered as fictional.

  3. #3
    Full Member
    Join Date
    Jan 2013
    Location
    Pretoria
    Posts
    42
    Thanks
    0
    Thanked 19 Times in 13 Posts
    Dave,

    As far as we could establish, the same minimum assessment would apply for domestic employers which currently stands at R 1 284 for the 2020 year. It is entirely possible that the domestic would have multiple employers ( eg working one day per week for five different employers ) and each of those employers would have to register.

    We will know once we have successfully completed a full cycle of registration, submission of ROE and obtaining the assessment. Our first "test" cases for registration was submitted on 19 March but to date no registration numbers were received. Perhaps some other members were more successful?

  4. Thanks given for this post:

    Dave A (17-Apr-21)

  5. #4
    Full Member
    Join Date
    Jan 2013
    Location
    Pretoria
    Posts
    42
    Thanks
    0
    Thanked 19 Times in 13 Posts
    Tec0,

    The responsibilities of the "domestic employer" would be exactly the same than other employers. In a nutshell this would be:

    1) Register as an employer within 7 days of acquiring this status;
    2) Keep the records stipulated by the Act and in the prescribed form;
    3) Furnish a yearly return of earnings;
    4) Pay the resultant assessment;
    5) Report an accident to the Commissioner in the prescribed way and
    6) Pay the injured employee the calculated compensation for the first three months that he /she is off duty ( and then claim back )

    1-4 above is fairly straightforward and the GG also provides some guidelines, but No 5 is where the real problems and frustration will commence. There is a very high probability that households would not have the prescribed forms on hand nor have knowledge of the process. Currently medical service provides are very reluctant to treat IOD patients as the process is so cumbersome that they are waiting months to get paid. This is so even with accountants and H/R managers acting for the employer.

    The benefit for registering as a household employer is that no civil claim can be instituted should an employee be injured at the workplace. Any claim would then have to be addressed to the Compensation Commissioner. Negligence by the employer with regard to safety at the workplace enabled the employee to claim for increased compensation and the employer was penalized by an increased percentage of the tariff applicable to their business. We have not seen these "loads" applied during the last two assessment cycles.

  6. #5
    Diamond Member
    Join Date
    Apr 2010
    Location
    planet earth
    Posts
    3,943
    Thanks
    153
    Thanked 317 Times in 287 Posts
    Just smile and say yes ... or use the phrase "pending"

    One of the sites I work on require a long list of registration ... one being workmans comp ... For the past 3 years ... still no joy registering.
    Comments are based on opinion...not always facts....that's why people use an alias.

  7. #6
    Full Member
    Join Date
    Jan 2013
    Location
    Pretoria
    Posts
    42
    Thanks
    0
    Thanked 19 Times in 13 Posts
    The implications of having a contractor - that is not registered with the Compensation Fund - injured on your site could be severe. Eg all medical costs associated with the injury or even pensions in the case of a permanent disability or death could be recovered from the Principal.

    For the non-registered contractor it is important to note that the Act authorize the principal to recover any costs so incurred from the contractor.

  8. #7
    Diamond Member
    Join Date
    Apr 2010
    Location
    planet earth
    Posts
    3,943
    Thanks
    153
    Thanked 317 Times in 287 Posts
    Quote Originally Posted by Johan99 View Post
    The implications of having a contractor - that is not registered with the Compensation Fund - injured on your site could be severe. Eg all medical costs associated with the injury or even pensions in the case of a permanent disability or death could be recovered from the Principal.

    For the non-registered contractor it is important to note that the Act authorize the principal to recover any costs so incurred from the contractor.
    I dont have the patients to deal with these departments ... so I outsourced the challenge to update my registration ... still no luck.

    What blows my mind is people talk employment figues ... the countries growth ...etc etc ... yet you go to any government department there are long ques with people who have cash ...yes cash not eft or the cheques in the post.

    Jusy imagine if there were competant people in the right postions ... they would be creating employment starting with bigger buildings ... more counters etc etc. ... its not that the people doing the work are incompentant ... I have sat in ques watching the tellers ... you get the slackers (like every company) but in general the line moves at a steady pace ... they just need more staff and to open all the counters.
    Comments are based on opinion...not always facts....that's why people use an alias.

  9. #8
    Diamond Member
    Join Date
    Apr 2010
    Location
    planet earth
    Posts
    3,943
    Thanks
    153
    Thanked 317 Times in 287 Posts
    Got the PM ... thanks.
    Comments are based on opinion...not always facts....that's why people use an alias.

  10. #9
    Diamond Member tec0's Avatar
    Join Date
    Jun 2009
    Location
    South Africa
    Posts
    4,624
    Thanks
    1,884
    Thanked 463 Times in 410 Posts
    Blog Entries
    3
    Quote Originally Posted by Johan99 View Post
    The implications of having a contractor - that is not registered with the Compensation Fund - injured on your site could be severe. Eg all medical costs associated with the injury or even pensions in the case of a permanent disability or death could be recovered from the Principal.

    For the non-registered contractor it is important to note that the Act authorize the principal to recover any costs so incurred from the contractor.
    As a laymen, i must ask for clarity. Does this include gardeners ? Because many think they are contractors but no contract exist. Also From a safety standpoint is he responsible for his own equipment? What if his equipment fail due to something that was on the property?

    See normally these are the questions many people avoid asking because they believe that, the gardener is there at own risk. As for as i know this is simply not true hence the questions. I stand to be corrected but as far as i know the gardener falls under the above?

    The reason why i ask this is because i see a lot situations the new "employers" will be exposed too.
    peace is a state of mind
    Disclaimer: everything written by me can be considered as fictional.

  11. #10
    Full Member
    Join Date
    Jan 2013
    Location
    Pretoria
    Posts
    42
    Thanks
    0
    Thanked 19 Times in 13 Posts
    Good morning Tec0,

    The contractors referred to would be small businesses or sole traders that were required to perform services at the employer's site. Examples would be electricians or an IT technician that would service the printers say.

    The latest amendment now place the same obligations upon a "domestic employer", and you are 100% right in stating that this opens new areas of risk for the domestic employer. Arguably the "contractor" from a domestic employers viewpoint would be rather the garden service business- which should already be registered with the Compensation Fund. We should all request a copy of his Letter of Good Standing and check the expiry date...

    I presume however that the gardener you refer to is the one that arrives every Saturday or second Saturday to maintain your premises? He would be seen as an employee and therefore the agreement / contract can also be oral.

  12. Thanks given for this post:

    tec0 (19-Apr-21)

Similar Threads

  1. [Question] Insurance for low income employees like domestic workers?
    By padjakkels in forum Labour Relations and Legislation Forum
    Replies: 1
    Last Post: 30-Jan-19, 09:24 PM
  2. Replies: 0
    Last Post: 28-Aug-15, 07:22 AM
  3. Workmens Compensation for domestic employees?
    By BvN in forum Labour Relations and Legislation Forum
    Replies: 7
    Last Post: 17-Oct-14, 08:07 AM
  4. Labour on UIF contributions for domestic workers
    By I Robot in forum General Regulatory Compliance Forum
    Replies: 0
    Last Post: 06-Dec-07, 03:49 PM

Tags for this Thread

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •