COIDA Amendments Take Effect: What Employers Need To Know

The Compensation for Occupational Injuries and Diseases Act (COIDA) has undergone significant amendments affecting employers and employees. On 23 January 2026, President Cyril Ramaphosa fixed commencement dates for most provisions, with selected sections deferred to 1 February 2026 and 1 April 2026. The amendments reshape employer compliance obligations, introduce administrative penalties, expand enforcement powers, and extend prescription periods.

We provide a comprehensive overview of the changes to COIDA and highlight key considerations for employers.

Commencement dates

The sections commencing on 1 February 2026, restructure the Compensation Board's composition, appointment process, and procedural requirements.

The sections commencing on 1 April 2026, address assessment payment deadlines, interest calculations, and penalty enforcement mechanisms.

All remaining sections commence on 23 January 2026,except:

• section 1(g), which substitutes the definition of earnings to align with the Fourth Schedule to the Income Tax Act, 1962, fundamentally changing compensation calculations; and
• section 1(h) (partially), which updates legislative references for military and police personnel who remain excluded from COIDA coverage.

Inspections and compliance orders

Chapter XA introduces a new inspectorate framework. The Commissioner may appoint inspectors to monitor and enforce compliance by conducting inspections, investigating complaints, and issuing compliance orders. Inspectors may enter workplaces, require disclosure under oath, inspect and copy records, remove documents or machinery, and question persons. Employers must co-operate and answer truthfully; answers may not be used in criminal proceedings except for perjury. Non-compliance may result in compliance orders specifying contraventions, corrective steps, timeframes, and maximum fines. The Commissioner may apply to the Labour Court to convert non-complied orders into court orders.

Administrative penalties replace criminal offences

Non-compliance with specified sections now attracts administrative penalties rather than criminal prosecution.

A failure to report accidents within 7 days incurs a penalty equal to full compensation payable plus interest from the accident date. A failure to pay the first three months' temporary disablement compensation attracts a penalty of double the three-month amount plus interest. A failure to provide required conveyance results in a penalty equal to full conveyance cost. Record-keeping failures attract penalties up to 10% of actual or estimated annual assessments, with records retained for five years and produced on demand.

Extended prescription period (12 months to 3 years)

The prescription period extends from 12 months to three years from the accident date, significantly increasing employers' exposure to latent claims and requiring enhanced document retention and incident-tracking protocols.

Broader travel/conveyance liability

Section 22 deems conveyance by or on behalf of the employer (by any mode of transportation in furtherance of the employer's business) to occur in the course of employment, from designated pick-up to drop-off. Compensation is payable notwithstanding serious and wilful misconduct.

Employers should review transport arrangements, pick-up/drop-off protocols, and contractor transport agreements for compliance.

Rehabilitation and return-to-work obligations

Chapter VIIA requires the Compensation Fund (or individually liable employer/licensee) to provide clinical, vocational, and social rehabilitation. Section 85(3) permits assessment rebates for favourable accident records or participation in prescribed rehabilitation programmes.

Employers should implement structured return-to-work and rehabilitation programmes to access potential assessment rebates. To this end, draft Rehabilitation, Reintegration and Return to Work Regulations were published on 15June 2023 by the Department of Employment and Labour (DEL). These draft regulations provide context on the new and significant obligations for employers to fulfil in this regard. The final version of the draft regulations should be expected following this development. A summary of the draft regulations date can be found here.

Contractor/sub-contractor liability

Section 89 requires sub-contractors to register and pay assessments; failing which, their employees are deemed employees of the contractor (who becomes liable). The contractor has statutory recovery rights, and the Commissioner may recover from either party.

Employers should require proof of COIDA registration and assessment payment from sub-contractors and incorporate contractual indemnities.

Assessment payment, interest and enforcement

Assessments must be paid within 30 days (or in approved instalments). Interest is payable on overdue assessments at a commissioner-determined rate (capped by the Prescribed Rate of Interest Act). Section 87 introduces 10% penalties and routes enforcement through compliance mechanisms.

Key takeaways for employers

The amendments introduce a comprehensive enforcement regime with administrative penalties replacing criminal prosecution for non-compliance.

Employers face significantly extended exposure through the three-year prescription period and expanded liability for employer-provided transport.

The new inspectorate framework grants broad powers to enter workplaces, compel disclosure under oath, and issue compliance orders enforceable through the Labour Court.

Employers must retain records for five years, meet strict seven-day accident reporting deadlines, and pay the first three months' temporary disablement compensation to avoid substantial penalties calculated on full compensation amounts plus interest.

The rehabilitation provisions create both obligations and opportunities, requiring structured return-to-work programmes while offering potential assessment rebates for participation.

Contractor arrangements demand heightened scrutiny, with employers bearing liability where sub-contractors fail to register or pay assessments.

Immediate action is required to update record-keeping systems, strengthen accident reporting protocols, prepare for inspector engagement, audit temporary disablement payment processes, implement rehabilitation frameworks, enhance contractor onboarding procedures, and review transport policies to ensure compliance with the staggered commencement dates.