The owner of a new business that will employ people must register as an employer with the Department of Labour to contribute to the Unemployment Insurance Fund and the Compensation Fund.
The Compensation for Occupational Injuries and Diseases Act 61 of 1997 requires employers to ensure their employees (including temporary staff) against accidents or illness that could result in death of disability by making contributions to the Compensation Fund. All persons who employ one or more employees are required to register and to make annual payments to the Compensation Fund. These amounts may not be recovered from employees.
The rate at which compensation is paid varies from industry to industry, based on the principle that each industry should carry the cost of its own accidents. At the end of January each year, workmen's forms are sent to all registered employers and these have to be returned and the amounts paid by the end of March.
The benefits to the employer are that the Compensation Fund will compensate the employee for an injury sustained on duty, and will also protect the employer from any potential civil claims resulting from his or her possible negligence.
Within 14 days of becoming aware of an alleged occupational disease or injury, an employer must complete an "Employer's Report of an Occupational Disease" form (form W.C1.1 in the case of a disease) and an "Employer's Report of an Occupational Injury" form (form W.C1.2. in the case of an occupational injury). It must be forwarded to the Compensation Commissioner, P.O. Box 955, Pretoria, 0001.
Compensation Fund Registration Form