Recent changes in the Compensation for Occupational Injuries and Diseases Act (COIDA) have important implications for employers of domestic workers in South Africa. The amendments now classify domestic workers as formal employees, entitling them to certain benefits in case of work-related accidents or illnesses. Here’s what you need to know:

Registration for Worker’s Compensation
Under the revised COIDA, employers are required to register their domestic workers for worker’s compensation. This can be done by completing the W.as.2 forms available on the Department of Labour’s website. Once the form, along with the employer’s identity document, is submitted to the Compensation Commissioner’s office, the employer will be allocated a Compensation Fund registration number.

Submission of the Return of Earnings
Employers are also obligated to submit a return of earnings annually, which determines the assessment tariff. The assessment tariff denotes the monthly contribution to be made into the Compensation Fund. It’s important to note that employers are not allowed to deduct any portion of the domestic worker’s earnings as a contribution to the Compensation Fund.

Calculation of Assessment Fee
The assessment fee is calculated based on the earnings of the domestic worker, and the assessment tariff depends on the risks associated with the type of work performed.

Consequences of Non-Registration
Failure to register a domestic worker for workmen’s compensation can lead to penalties or even prosecution in the event of a work-related injury or death.

Registration for UIF
Apart from worker’s compensation, domestic workers who work more than 24 hours a month must also be registered with the Unemployment Insurance Fund (UIF). Employers have a legal obligation to register their domestic workers with UIF.

How to Register for UIF
Employers can register their domestic workers with UIF through various methods, including telephone, email, post, or by visiting a Labour Centre. The necessary forms UI-8D and UI-19 can be downloaded from the Department of Labour’s website.

Monthly Contributions
Both the employer and the domestic worker are responsible for contributing 1% of the worker’s salary each month, totaling 2% of the salary. It is the employer’s responsibility to deduct these contributions from the domestic worker’s salary and remit the total 2% to UIF before the 7th of each month.

Consequences of Non-Registration for UIF
Failure to register the domestic worker for UIF can result in the employer being liable for all outstanding UIF contributions, including the worker’s contributions. Additionally, interest will be calculated on the outstanding amounts, and a penalty of 10% may be imposed on the unpaid sum.

In conclusion, employers of domestic workers in South Africa must be aware of these recent regulatory changes to avoid any penalties or legal issues. Registering domestic workers for worker’s compensation and UIF is now a mandatory responsibility that employers must fulfill to comply with the law.