Registration in terms of the Occupational Injuries and Diseases Act will benefit your business
An employee who is injured or contracts a disease in the course of duty (or his family in the event of death) is entitled to the payment of compensation in respect of temporary and permanent disability and death.
To prevent these types of claims from crippling businesses the risk was transferred to the Compensation Commissioner.
In terms of the Compensation for Occupational Injuries and Diseases Act, Act No. 130 of 1993, it is compulsory for every employer carrying on business in the Republic of South Africa to register with the Compensation Commissioner and to furnish the Commissioner with certain prescribed information.
The purpose of the Act is to establish a fund to provide compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees in the course of their employment or for death resulting from such injuries or diseases.
It is compulsory for all employers to complete a return and to pay a fixed percentage of the earnings of their employees to the Commissioner.
Failure to register or to submit the prescribed return or make the prescribed payments will result in stiff penalties and is also a criminal offence.
Some employers are unwilling to register or flatly refuse to do so. It is important to point out that it is in the interest of the employer to comply with this Act as the Act indemnifies and protects the employer against all civil claims that may be instituted against it in the event of an injury on duty even in the event of alleged negligence.
Non compliance may negate the indemnity of an employer and render the employer liable for massive civil claims.
The benefits of compliance far outweighs the costs and it is in the interest of all employers to take action today.