News Flash: Amendments to the Compensation for Occupational Injuries and Diseases Act 130 of  1993

By David Short | Director and Paula Phukuje | Associate

On the 21^st January the State President signed certain Sections of the Compensation for Occupational Injuries and Diseases Amendment Act of 2022 into effect.

Whilst the Amendment Act of 2022 envisaged extensive amendments to the Compensation  for Occupational Injuries and Diseases Act, only certain of these have been enacted.

In terms of Proclamation Notice 306 of 2026, the amendments which relate to the administrative provisions contained in the Amendment Act are to come into effect as from the 1^st February 2026.

The administrative provisions  which will be amended, relate to the appointment of a Board which has oversight over the Compensation Commission.  This Board is to be appointed by the Minister and within three months of its appointment, the Board is to prepare and adopt a Board Charter which will presumably set out its powers and functions.

The second raft of amendments contemplated in the Amendment Act relate to penalties which can be imposed by the Commission for non-compliance with the Compensation for Occupational Injuries and Diseases Act and will take effect as from 1 April 2026.

The fines prescribed in the Amendment Act are significantly higher than those prescribed in the existing Compensation for Occupational and Diseases Act 130 of  1993, which were relatively light.

For example, where an employer fails to report an occupational accident within seven days of becoming aware of such accident, it could face a fine equivalent to 10% of the annual earnings of the employee concerned for the year in which the accident occurred.

Where an employer fails to report an occupational accident in the manner prescribed by the  Act, such employer could be liable for a fine of not more than the full amount of the compensation payable in respect of such accident  plus interest may be imposed, in addition to any other penalty to which such employer may be liable.

In terms of the Amendment Act where an employer deducts any amount from the remuneration of its employees, to compensate it either directly or indirectly, for any amount which the employer is liable to pay in terms of the Compensation for Occupational Injuries and Diseases Act, such employer could be liable for a penalty imposed by the court and in addition, may also be ordered to repay such compensation to the employees concerned, in a manner determined by the Court.

Where an employer fails to keep a register or other record of the earnings of its employees and produce same on demand, it could be liable for a penalty not exceeding 10% of the actual earnings of its employees estimated for the year concerned, or on the outstanding amount owed by the employer.

The Amendment Act, however, makes provision for law abiding employers who have accident records during a particular period more favorable than that of comparable businesses, or where the employer actively participates in the rehabilitation of its employees suffering from an occupational injury or diseases, to receive a rebate on any assessment paid or payable by it.

The amendments which are to take effect as from 1 April 2026, are aimed at ensuring proper and timeous compliance with significant consequences in the case of non-compliance.

It remains to be seen whether the promulgated amendments will result in a higher level of compliance by employers.