Labour Law Update – Domestic Workers Workmen’s Compensation Deadline
Deadline for Employers to comply before 30 June 2023
In South Africa, domestic workers have gradually gained increasing protection under labour laws. They are entitled to the National Minimum Wage (NMW) and have been brought in line with the rest of the country’s workforce since March 2022 with the current NMW (in June 2023) set at R25.42 per hour. Additionally, employers are required to register their domestic workers with the Unemployment Insurance Fund (UIF) and the Compensation for Occupational Injuries and Diseases Act (COIDA). This article discusses the significance of these changes, highlights the obligations employers must fulfil, and explores the risks of non-compliance.
Unemployment Insurance Fund (UIF)
Employers are required to contribute 2% of their domestic worker’s salary to the UIF each month, with 1% being paid by the employer and the other 1% deducted from the employee’s wages.
Compensation for Occupational Injuries and Diseases Act (COIDA) commonly referred to as Workmen’s Compensation
Domestic workers now have the right to claim compensation if they contract an illness or sustain an injury while on duty. This includes disability coverage, medical benefits, and support for their dependents in the event of death. Consequently, it is essential for all employers of domestic workers to comply with the relevant labour laws, regardless of whether an employment contract is in place.
Compensation Fund Registration
To provide comprehensive protection, employers must register with the Compensation Fund and submit annual returns. By making an annual contribution, employers enable their employees to claim from the fund in case of illness, injury, disability, or death related to their work duties. The employer’s contribution is based on the employee’s total earnings for the year, and the assessment tariff is determined by the associated risks of the work performed. Employers must submit a statement of earnings paid to all workers.
Employers have until 30 June 2023 to submit their workers’ statement of earnings for the 2022 assessment period. Failure to meet this deadline will result in interest charges and a 10% penalty. A Letter of Good Standing will be issued upon receipt of the full payment, and its authenticity can be verified online using the unique Certificate Number. Submissions can be made conveniently through the Department of Labour’s website (https://cfonline.labour.gov.za). Anyone that does not comply with the requirements mentioned in this article regarding NMW, UIF and COIDA for domestic workers is at risk of receiving fines and penalties from the Department of Labour. It is crucial for employers to prioritize their responsibilities and ensure compliance to protect both their domestic workers and their own interests.
Get Assistance
For any inquiries or assistance related to your employees, whether they work at your business or home, you can reach out to Labour Specialists Employer Solutions through our website, email, or landline. We are here to help.
Registration Requirements
All employers of domestic workers are strongly encouraged to promptly register with the Compensation Fund. To complete the registration process, the following documents should be submitted to RegistrationCF@labour.gov.za or CFCallcentre@labour.gov.za:
– A completed CF-1E Form (Application for the registration of the domestic worker employer)
– Copies of identification documents (ID, passport, or similar) for both employer and employee
– Proof of the employer’s residential address
– A copy of the employment contract
Conclusion
The recent changes in labour laws in South Africa have brought domestic workers under enhanced protection. With the inclusion of domestic workers under the Compensation for Occupational Injuries and Diseases Act (COIDA), they now have the right to claim compensation for work-related illnesses and injuries. Employers must fulfil their responsibilities, including registering with the Compensation Fund and submitting annual returns. Adhering to the deadlines and requirements will ensure compliance and avoid penalties. It is crucial for employers to prioritise the well-being and rights of their domestic workers by complying with these regulations.
*This article does not constitute legal advice and is based on the author’s interpretation of legislation and case law. Book a consult for legal advice or assistance pertaining to your specific matter.