WHY COMPANIES/BUSINESSES NEED TO SUBMIT A RETURN OF EARNINGS:
Employers are required by the Compensation for Occupational Injuries and Diseases Act, 1993 Section 82 to submit a Return of Earnings form on an annual basis.
The revenue of the Compensation Fund, which compensates workers who are injured at work or who contract occupational diseases at work or who die because of these, comes directly from the assessments of registered employers in the country. The annual assessments paid by these employers are based on a percentage or fixed rate of the annual earnings of their employees.
The annual assessment fee, of an employer is based on their employee's earnings and the risks associated with the type of work or profession.
Before 31 March each year, all employers (including contractors) must submit a statement of earnings paid to all their workers from the beginning of March to the end of February.
PURPOSE OF THIS LETTER:
To be in "Good Standing" with the Compensation Fund. It verifies that the company/ business met all its statutory responsibilities as required by the Compensation for Occupational Injuries and Diseases Act, 130 of 1993.
WHO NEEDS A LETTER OF GOOD STANDING:
Every registered company, business, sole proprietor, contractor or Labour Broker in South Africa will need a Letter of Good Standing.
For employers who depends on tenders, a Letter of Good Standing is absolutely essential and a legal requirement.
The procedure to apply for a Letter of Good Standing has changed over the past few years and most individuals struggle with their applications, sacrificing hours attempting to acquire a Letter of Good Standing.
Please note that the Return of Earnings submission is NOT INCLUDED, however we can assist you with it.
The Letter of Good Standing will be sent to you once the Compensation Fund has assessed your account and you have paid all outstanding monies.
Average turnaround time: 2 working days for a reply.
If there are outstanding issues, the letter will be issued 5 working days after all issues have been resolved.
If you have not completed and submitted your Return of Earnings (RoE) , this must be done 1st before a renewed Letter of Good Standing can be applied for or issued
In case your fees are not up to date, we will send you the information, you need to settle your account with the Compensation Fund before we can continue with the Letter of Good Standing. Please note that any outstanding fees payable to the COMPENSATION FUND will not be included in our services fees.
MERIT REBATES (Assessment Tariff Reduction):
If in the opinion of the Compensation Commissioner the business of an Employer is designed, equipped, organised or conducted in a manner which is calculated to prevent accidents and the number of accidents and the expenditure in connection therewith are or are likely to be less than those usually occurring in comparable businesses you may be assessed at a lower assessment tariff than the tariff of assessment for Employers in comparable businesses.
If the accident record of an Employer during a particular period is more favourable than those of Employers in comparable businesses, you may qualify for a rebate on any assessment paid.