Question NW682 to the Minister of Employment and Labour

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11 March 2022 - NW682

Profile picture: Cardo, Dr MJ

Cardo, Dr MJ to ask the Minister of Employment and Labour

Whether the Compensation Fund received a return of earnings from 222,382 companies in the 2020-21 financial year, while his department reportedly inspected 2 million companies; if not, what is the position in this regard; if so, what are the reasons that the Compensation Fund is just administering 11% of all companies in the Republic?

Reply:

The Compensation Fund received 223 644 return of earnings in the 2020-21 financial year.

Only companies who employ a person are required to register with the Compensation Fund in terms of section 80 of the COIDA and submit Return of Earnings in terms of section 82 of COIDA. Employers who meet the requirements of submission of return of earnings and do not do so, are levied penalties and referred to the Inspection and Enforcement Branch in the Department of Employment and Labour.

The Inspection and Enforcement Services (IES) Branch of the Department of Employment and Labour conducts inspections for the assessment of employer compliance against a number of legislations; namely, Employment Equity, Occupational Health and Safety, Unemployment Insurance, Basic Conditions of Employment as well as the Compensation for Occupational Injuries and Diseases (COID).

The reported number of 2 million inspections includes all inspections against the abovementioned legislations and not just those of the Compensation Fund against the COID Act. In addition, the Inspectors visit and inspect workplaces, one registered employer can have multiple workplaces from which his/her business operations are carried out.

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