COIDA: Scam Alert Regarding Letters of Good Standing [7cf448]

Posted 19 November 2025 Written by Acts Online
Category Labour

Brought to you by SA Accounting Academy: The Compensation Fund has issued a warning regarding fraudulent activities and scams involving the issuance of Letters of Good Standing under the Compensation for Occupational Injuries and Diseases Act, No. 130 of 1993.

In terms of the Compensation for Occupational Injuries and Diseases Act, No. 130 of 1993 (COIDA), a Letter of Good Standing is a certificate that confirms an employer has complied with the statutory requirements of the Act, specifically regarding registration under section 80 and the submission of returns of earnings under section 82. The Compensation Fund (CF) has noted an increase in fraudulent “consultants” and third parties offering to provide these certificates for a fee, often without the employer having settled their outstanding assessments.

The Fund emphasizes that a Letter of Good Standing is only valid if it is generated through the official Department of Employment and Labour electronic systems. Certificates obtained through unofficial channels are considered fraudulent and provide no legal protection to the employer or their employees in the event of a workplace injury or disease claim.

Official Verification and Compliance

To maintain compliance and avoid the risks associated with fraudulent documentation, the following protocols must be observed:

  • All applications for a Letter of Good Standing must be processed via the official Compensation Fund e-COID portal.
  • Employers and practitioners should verify the authenticity of any certificate by using the verification tool available on the Department of Employment and Labour website.
  • Payments for COIDA assessments must be made directly to the Compensation Fund using the specific 99-reference number provided on the official assessment notice.
  • No “expediting fees” or “clearance fees” are legally payable to individuals claiming to represent the Fund or to be able to bypass standard compliance checks.

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

  • For yourself: Verify the validity of any Letter of Good Standing presented by a client or contractor by entering the certificate number into the official Compensation Fund verification portal before accepting it as proof of compliance.
  • For your business: Ensure that all COIDA-related filings and payments are conducted through the official e-COID system and that no staff members engage with third-party “agents” promising quick-fix compliance solutions.
  • For your clients: Advise clients that using fraudulent Letters of Good Standing can lead to the immediate disqualification of tender bids and potential criminal prosecution for fraud under the Act.

Originally published at https://accountingacademy.co.za/news/read/coida-scam-alert-re-letters-of-good-standing-15

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