Set out below are the amendments to the Compensation for Occupational Injuries and Diseases Act 130 of 1993 ("COIDA"), which relate to the rules, forms and particulars, and the increase of the maximum amount of earnings on which the assessment of an employer shall be calculated.

The amended rules, forms and particulars

Section 82 of COIDA requires the employer to furnish return of earnings to the commissioner. With effect from 16 April 2016 form W.As. 8 will be used for return of earnings in terms of section 82(1).

Historically, this has been done by posting the applicable return of earnings form to registered employers. Employers are now required to download the form from the Department of Labour's website. The preferred manner of filing forms to the Department of Labour is online using this website. A submission guide is also available on the website.

This form must be completed and submitted to the Labour commissioner before 31 March 2016. There is a discrepancy as the gazette was published on 15 April 2106. We will look into this discrepancy.

Failure to do so will constitute an offence in terms of section 82(5) and will result in a penalty of a fine amounting to ten percent on the final assessment being imposed. It is important to note that the cost of the compulsory minimum assessment will not be less than one thousand rand (R1000).

Important information and guidelines for completing a return of earnings form

All employers must submit return of earnings in respect of their employees. An employee, for purposes of section 82 is a person who has entered into or works under a contract of service, learner-ship or apprenticeship with an employer, regardless of whether the contract is expressly given or implied. This includes temporary employees but expressly excludes a person provided by a labour broker; the earnings of such persons should not be included in the client's Return of Earnings document.

Earnings for purposes of the return of earnings submission include, but are not limited to, overtime of a regular nature, bonuses of any kind, commission, and allowances paid regularly and exclude reimbursement payments, ex gratia payments, intangible fringe benefits such as medical and pension contributions by the employer and profit sharing of directors and members.

Increase of the maximum amount of earnings

Effective from 1 April 2016 the maximum amount of earnings on which the assessment of an employer shall be calculated will be R377 097.

Written by Webber Wentzel