COIDA Amendment Act, 2022: New Employer Obligations and Penalties

Posted 19 March 2026 Written by Acts Online
Category Justice

Brought to you by SA Accounting Academy: The Compensation for Occupational Injuries and Diseases Amendment Act, No. 10 of 2022, introduces a revised compliance landscape for employers, including expanded coverage for mental health and commuting accidents.

In terms of the Compensation for Occupational Injuries and Diseases Amendment Act, No. 10 of 2022, the Department of Employment and Labour has updated the regulatory framework governing workplace injuries and diseases. The amendments, which are largely set to become effective on 23 January 2026 with specific sections commencing on 1 April 2026, introduce stricter administrative penalties and expand the scope of compensable incidents.

Expanded Coverage and Definitions

The Act formally recognises post-traumatic stress disorder (PTSD) as an occupational disease. This alignment with recent case law ensures that employees who develop PTSD due to workplace incidents are eligible for compensation. Furthermore, the scope of protection now includes injuries sustained during work-related training conducted in furtherance of the employer’s business.

Commuting risks are addressed through the extension of coverage to accidents occurring during transport provided by the employer. Under the amended section, conveyance is deemed to commence when an employee reaches the designated pick-up point and terminates at the designated drop-off point.

Compliance and Administrative Changes

The Amendment Act introduces several procedural shifts that require immediate attention from compliance officers and payroll administrators:

  • Prescription Periods: The period for reporting an accident has been extended from 12 months to three years.
  • Record Retention: Employers are now mandated to retain records of earnings for a minimum period of five years.
  • Penalties: Stricter enforcement measures include a 10% administrative fine for the late reporting of accidents.
  • Insurer Licensing: A new licensing system for insurers has been introduced to regulate the provision of COID-related services.
  • Dependants: The definition of dependants has been expanded to reflect broader familial structures.

Click here to download the Proclamation regarding the COID Amendment Act.

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

  • For yourself: You must familiarise yourself with the expanded definition of occupational diseases, specifically the inclusion of PTSD, to provide accurate legal or compliance advice regarding workplace injury claims.
  • For your business: Your firm must update its document retention policy to ensure that all employee earnings records are archived and accessible for at least five years to avoid statutory non-compliance.
  • For your clients: Advise clients to audit their workplace training protocols and employer-provided transport arrangements, as these are now high-risk areas for COIDA claims, and highlight the 10% penalty risk for failing to meet reporting deadlines.

Originally published at https://accountingacademy.co.za/news/read/doel-coida-amendments-employer-obligations-and-penalties

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