Out of a total of 267 municipalities registered with the Compensation Fund (CF) only 147 were submitting their returns to the Fund, according to the Department of Employment and Labour.
The department said that this conduct exposes millions of workers faced with the risks of occupational hazards to inadequate cover.
Chief Director: Compensation for Occupational Injuries and Diseases (COID) Services at Compensation Fund, Julian Soupen, said the 55% compliance rate means that a high number of workers were receiving the short end of the stick due to high levels of non-compliance in the workplace.
“It is concerning, it means that 45% of employers at municipalities were not submitting returns and this means that their employees were not covered for occupational injuries and diseases sustained at work.
“The implication is that these municipalities are liable for fines and penalties for non-compliance. This is over and above the fees they are obligated to pay to the Fund,” Soupen said.
Soupen was speaking during the joint seminar by the Department of Employment and Labour’s Compensation Fund, the Limpopo provinical department of Cooperative Governance, Human Settlement & Traditional Affairs in collaboration with the South African Local Government Association (SALGA).
The seminar is targeted at local government custodians in a drive to ensure the protection and health of workers while ensuring that organisations at local government comply with Compensation for Occupational Injuries and Diseases Act.
The two-day seminar at Protea Hotel (The Ranch) in Polokwane is held under the theme: “Compensation Fund working with municipalities on COIDA to protect vulnerable workers”.
Soupen said the expectation for employers in terms of the Act is that it needs to be complied with.
He further said the CF expects employers to comply by registering, ensure that the fees are fully paid, and the registration is done properly.
He warned that if these legislative requirements were not followed, cover for employees will not be adequate.
In as far as the province of Limpopo was concerned, Soupen said that 27 municipalities were registered with the CF and 21 of those were submitting their returns to the Fund.
He said the 78% compliance rate in the province was commendable and it was one of the highest in the country at this level of government.
“I wish to commend the leadership of Limpopo Province who are complying in that regard,” he said.
According to Soupen, the CF was always willing to engage with its stakeholders to ensure compliance.
The Compensation Fund exists to administer the COID Act. Its main objective is to provide compensation for disability, illness and death resulting from occupational injuries and diseases.
In terms of the COID Act, employers must register with the Compensation Fund and pay an annual assessment fee based on their workers’ earnings and the risks associated with the type of work being done.
Soupen said in terms of legislation, there were only nine municipalities in South Africa that were classified as exempted. He said those municipalities that are classified as exempted employers do not have to pay fees to the CF, they are however responsible to keep reserves to meet the costs related to occupational injuries and diseases.
“The reserves that they are expected to keep is assessed and signed off by the CF, and once the Fund is satisfied that the level of reserves held by those municipalities is sufficient to cover the operational costs of occupational injuries and diseases they are issued with certificate of exemption,” he emphasized.
Soupen reminded employers that, “the Act provides for adequate financial assistance to victims of injuries and diseases”.
He said that access to immediate medical care was critical and it was paramount to an employee who is a victim of injury or disease.
“The longer that is prolonged, it puts the health of the employee at risk and it would make treatment of the employee a little difficult. We have found out that in some instances there is a long delay from the time of the incident and the time employees getting medical attention.
“I wish to implore employers to ensure that when such incidents do happen that priority is given to their employees getting medical care,” Soupen said.
In the period of 2019–2022 the CF had recorded 1155 claims, and 38% of these have been finalized.
Soupen said 50% of those claims are still outstanding – waiting for information from employers to facilitate the outstanding claims.
The department has appealed to municipalities to get in touch with the CF to assist in ensuring compliance.
Soupen added that a healthy workforce in the region, means that the region is economically viable, self-sufficient and has a healthy work force.
The seminar enters its second and final day today and is targeted at: Municipal Managers, Chief Financial Officers, Directors Corporate Services & Human Resources Managers/Officers.
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