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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.

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