COIDA: Warning Issued Over Fraudulent Letters of Good Standing

Posted 19 November 2025 Written by Acts Online
Category Labour

Brought to you by SA Accounting Academy: The Compensation Fund has issued a formal warning to employers and practitioners regarding fraudulent schemes involving the issuance of Letters of Good Standing (LOGS).

In terms of the Compensation for Occupational Injuries and Diseases Act, No. 130 of 1993 (COIDA), specifically sections 80 and 82, employers are required to register with the Compensation Commissioner and furnish particulars of wages to determine assessment fees. A Letter of Good Standing is only issued when an employer has complied with all the provisions of the Act, including the timeous payment of assessments.

The alert highlights that unauthorized third parties are posing as Department of Employment and Labour officials or using fraudulent websites to solicit payments for LOGS. The Compensation Fund emphasizes the following compliance protocols:

  • Letters of Good Standing must be obtained exclusively through the official Department of Employment and Labour online portals, such as CompEasy or the Return of Earnings System (ROES).
  • Assessment payments must be made directly to the Compensation Fund using the correct 99-digit reference number provided on the Notice of Assessment (W.As.2).
  • The Fund does not charge a separate “service fee” for the generation of a Letter of Good Standing beyond the statutory assessment amounts calculated based on payroll.

The use of fraudulent certificates carries significant legal risk, including potential prosecution and the immediate disqualification from tender processes. Employers are encouraged to use the verification functionality on the official Compensation Fund website to confirm the validity of any certificate in their possession.

What this means for you, your business, or your clients

  • For yourself: Exercise professional skepticism when presented with a Letter of Good Standing by a third party; verify the document’s authenticity via the official Compensation Fund portal before placing reliance on it for compliance audits.
  • For your business: Ensure that all COIDA-related payments are made directly to the Compensation Fund’s verified bank account and that your internal procurement or HR teams only use official Departmental channels to generate compliance documents.
  • For your clients: Advise clients to ignore unsolicited emails or invoices from agents claiming to “expedite” LOGS for a fee, as these are often precursors to the issuance of forged documents that could jeopardize their standing with the Compensation Commissioner.

Originally published at https://accountingacademy.co.za/news/read/coida-scam-alert-re-letters-of-good-standing-13

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