The Compensation for Occupational Injuries and Diseases Act (COIDA) underwent significant amendments affecting employers and employees. On 23 January 2026, President Cyril Ramaphosa fixed commencement dates for most provisions. Selected sections were deferred to 1 February 2026 and 1 April 2026.
These changes reshape employer compliance obligations, introduce administrative penalties, expand enforcement powers and extend prescription periods. As COIDA amendments take effect, employers must reassess compliance frameworks.
We provide a comprehensive overview of the changes to COIDA and highlight key considerations for employers as COIDA amendments take effect.
Commencement dates
The sections commenced on 1 February 2026 restructured 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 commenced 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. This fundamentally changes compensation calculations, and
- section 1(h) (partially), which updates legislative references for military and police personnel who remain excluded from COIDA coverage.
As COIDA amendments take effect, employers must track staggered commencement obligations carefully.
Inspections and compliance orders
Chapter XA introduces a new inspectorate framework. The Commissioner may appoint inspectors to monitor and enforce compliance. Inspectors may conduct inspections, investigate complaints, and issue compliance orders.
Inspectors may enter workplaces, require disclosure under oath, inspect and copy records, remove documents or machinery and question persons. Employers must cooperate 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-compliant 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 seven 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. Furthermore, a failure to provide required conveyance results in a penalty equal to the full conveyance cost.
Record-keeping failures attract penalties up to 10% of actual or estimated annual assessments. Employers must retain records for five years and produce them on demand.
Extended prescription period (12 months to 3 years)
The prescription period extends from 12 months to three years from the accident date. This significantly increases employers’ exposure to latent claims and requires enhanced document retention and incident-tracking protocols.
Broader travel/conveyance liability
Section 22 deems conveyance by or on behalf of the employer to occur in the course of employment. This applies from designated pick-up to drop-off and covers any mode of transportation in furtherance of the employer’s business. Compensation remains payable notwithstanding serious and wilful misconduct.
Employers should review transport arrangements, pick-up and 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 or 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. Draft Rehabilitation, Reintegration and Return to Work Regulations were published on 15 June 2023 by the Department of Employment and Labour (DEL). These draft regulations provide context on new and significant obligations for employers.
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 this, 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 subcontractors 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.
In conclusion
The rehabilitation provisions create both obligations and opportunities. Employers must implement structured return-to-work programmes while accessing potential assessment rebates for participation. Contractor arrangements demand heightened scrutiny. Employers bear 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. These steps will ensure compliance as COIDA amendments take effect.
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| Kate Collier | Partner | mail me | | Kalene Watson | Senior Associate | mail me | |
| | Webber Wentzel | | |
