The Widening Net of COIDA
The recent amendments to the Compensation for Occupational Injuries and Diseases Amendment Act (COIDA) have broadened the definition of who qualifies as an employee, whilst extending employer responsibility for medical care.
The amended Act now recognises the following as employees:
- A person conducting work for remuneration under direction of the employer;
- A casual employee;
- A contractor or service provider;
- A person engaged in a learnership or apprenticeship; and/or
- A person provided by an employment service.
These amendments place a number of important obligations on employers:
- The employer will be responsible for the medical care of employee where an occupational injury or illness has occurred in the workplace.
- Where an accident in the workplace has occurred involving an employee suffering from a personal injury, occupational illness or disease, the employer must report it in the prescribed manner to the commissioner within seven days. Failure to report may cause the employer to be liable for the full compensation amount and an additional penalty.
- If the employee suffers an accident which is due to negligence on behalf of the employer, application may be made to the commissioner for increased compensation to be paid by the employer. The employer may be directed to pay an increased tariff during the assessment period where there has been an increased accident record.
- Any accident which an employee is involved in during transport provided or made available by the employer, related to the business of the employer, will be deemed to have taken place in the scope of employment.
- Where the services of a contractor are engaged with by the employer, a mandatary agreement must be in place between the employer and contractor. The employer shall ensure that the contractor holds a relevant and valid Letter of Good Standing. In failing to ensure this, the employer shall be held liable for medical costs and compensation where the contractor is involved in a workplace accident.
Given the scope of these changes, a thorough review of your workplace risk management processes – including contractor management – is essential. Working with a knowledgeable partner who understands both COIDA and the Occupational Health and Safety Act will help your business stay ahead of its obligations, avoid unnecessary penalties, and most importantly, keep people safe.
