Inclusion of Domestic Workers under COIDA

The inclusion of Domestic Workers under the Compensation for Occupational Injuries and Diseases Act (COIDA) was long overdue. This ruling was prompted by a landmark case where a Domestic Worker tragically passed away while on duty, cleaning windows. The ruling was made retrospective to provide coverage for such incidents.

Responsibility of the Employer

Many Domestic Employers hiring staff in their households may not be aware of their obligation to register with the Compensation Fund. It is the Employer’s responsibility to ensure registration, which is compulsory upon hiring household staff. Domestic Workers, defined as any employee in a home environment, are now entitled to compensation for injuries, diseases contracted, or in case of death while on duty.

COIDA Overview

COIDA provides compensation to employees injured or contracting diseases while on duty, with provisions for compensation to dependents in case of the employee’s death. The Compensation Fund, formerly known as Workmen’s Compensation, serves as a social protection ensuring basic human rights against life risks and social needs.

Court Ruling and Retrospective Inclusion

Following the case of Mahlangu and Another v Minister of Labour and Others, where a Domestic Worker died on duty, the Constitutional Court declared the exclusion of Domestic Workers under COIDA unconstitutional. The ruling, effective from 19 November 2020 and retrospective from 27 April 1994, mandates that Domestic Workers be recognized as “employees” under COIDA.

Compensation Fund Registration

Domestic Employers are required to register with the Compensation Fund, a one-time registration specifying the date of hire for the Domestic Worker, with retrospective effect from 27 April 1994.

Annual Submission

Annually, Domestic Employers must submit Returns of Earnings to the Compensation Fund. Based on the employment sector subclassification of the Domestic Worker, the Compensation Fund assesses and invoices the Employer for contributions. The current assessment rate is 1.04% of annual earnings. Note that assessment fees vary; high-risk sectors like security entail higher fees.

Our team is prepared to assist you with your COID registration and annual submissions.