The Impact of the Compensation for Occupational Injuries and Diseases Act), 1997 (Act 61 of 1997) (COIDA).
Positive impact on businesses:
- Promotes safety in the workplace.
- Creates a framework for acceptable employment practices√ and safety regulations.
- Supply administrative guidelines/mechanisms for dealing with/processing claims.
- Eliminates time and costs spent on lengthy civil court proceedings.
Negative impact on businesses:
- 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.
- Implementation processes/procedures required by the Act may be expensive.
- Employers have to register all their workers and 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.
Positive impact on employees:
- 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.
Negative impact on employees:
- Workers who are temporarily/permanently employed in foreign countries are not covered.
- Domestic/Military workers√ are not covered.