1. The name of the Act that is applicable to Mr Thom's is COIDA:
Compensation for Occupational Injuries and Diseases Act, 1993 (Act 130 of 1993)/Compensation for Occupational Injuries and Diseases Amendment Act, 1997 (Act 61 of 1997).
2. Impact of COIDA on businesses (employers and employees)
- Promotes safety in the workplace.
- Creates a framework for acceptable employment practices/safety regulations.
- Supply administrative guidelines/mechanisms for dealing with/ processing claims.
- Eliminates time and costs spent on lengthy civil court proceedings.
- Covers all employees at the workplace if both parties meet all the necessary safety provisions in the Act.
- Employees are compensated financially for any injury/disability resulting from performing their duties at their workplace.
- In the event of the death of an employee as a result of a work-related accident/disease, his/her dependant(s) will receive financial support.
- Employers are protected from financial burden should an accident occur in the workplace provided that the employer was not negligent.
- Employees do not have to contribute towards this fund.
- The employees receive medical assistance provided there is no other party.
- Any compensation to an employee/the family is exempt from income tax.
- The processes are relatively simple.
- Makes businesses more socially responsible as they cannot just employ workers at random in dangerous working conditions.
- Workers are treated with dignity and respect as businesses view them as valuable assets and not just as workers.
- Claiming processes/procedures can be time-consuming.
- Processes/Procedures required by this Act may be costly as paperwork places an extra administrative burden on businesses.
- Employers have to register all their workers/make annual contributions to COIDA, which may result in cash flow problems.
- Employers may be forced to pay heavy penalties if they are found guilty of negligence/not enforcing safety measures.
- Workers who are temporarily/permanently employed in foreign countries are not covered.
- Domestic/Military workers are not covered.
Reason: Mr Thom did not report the accident. He did not wear his protective clothing despite being advised to do so regularly.