Compensation rights

Fund plays important role in providing for staff in event of workplace injury or disease

THE compensation fund is a Schedule 3A public entity of the Department of Labour.

It was established to provide compensation in the event of an occupational injury or occupational disease. Unfortunately, this fund has been beset by administrative incompetence over the past 20 years and hamstrung by its own systems and computer programs.

Compensation commissioner Vuyo Mafata implemented a turnaround plan to align the facility to meet its mandate from the legislature.

There have been improvements, but one cannot say that the backlog has been completed. Nevertheless, the current medical invoices are paid within 60 days of receipt.

The old system wasted hundreds of millions of rand.

Department of Labour Director-General Thobile Lamati has reported that the compensation fund raised R9.3 billion in revenue from employers during the last financial year. In turn, the total benefits paid in actual cash for the year amounted to R3.9bn.

The Constitution states that all South Africans have a right to social security. The compensation fund has to provide social security to all injured employees, and those who have contracted diseases as a result of their workplace, and their dependants.

The main objective of the act is to provide compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees, or for death resulting from injuries or diseases, and to provide for matters connected therewith.

All employees have to be registered with the Department of Labour and the compensation fund generates its revenues from levies paid by employers.

There is an annual assessment which determines the levies. Until now, domestic workers have not been included in the system, but it does look like there will be an amendment soon.

The fund monitors compensation benefits services and provides for registration and assessment services of employers.

Over and above this, the fund promotes rehabilitation, reintegration and return to work of injured and diseased workers and contributes to various schemes designed to decrease unemployment, including investing mandated funds in socially responsible investments.

All claims should be paid within 45 days and they are aiming to try to approve benefits to be paid within five working days. The fund has to manage the adjudication of medical claims and the processing of the medical accounts.

It is vital that every employee is aware of their rights with regard to the compensation fund and as soon as there is a work-related disease or injury, events have to be reported to the Department of Labour.

It is the responsibility of the employer to ensure that a full and proper report, with the medical certificates, be sent to the department.

The compensation fund has to work hand in glove with the labour inspectors who enforce the Occupational Health and Safety Act.

Inspectors may, without previous notice, at all reasonable times, enter premises which are occupied or used by an employer or where an employee performs any work or any plant or machinery is used.

The trade unions, including shop stewards, have a duty to monitor the health and safety of each workplace and ensure that all accidents are properly reported to the department.

The compensation fund can be contacted at 086 010 5350, fax 012 357 1772, email cf-info@labour.gov.za, and their website is www.labour.gov.za. Head office is at 167 Thabo Shume Street, Delta Heights Building, Pretoria.

Fraud or corruption within the fund can be reported on their hotline number, 0800 234 432 or via email cf-fraud@thehotline.co.za.

I receive numerous complaints about the fund’s non-response or the breakdown of administration.

My experience has been that once I have raised the complaints with the compensation commissioner, I get responses within days.

There are numerous regulations and notices attached to health and safety legislation. All regulations can be read as attached to Act No 85 of 1993 as amended.

In an article of this nature, the regulations cannot be summarised as they are over 900 pages. South Africa today has some of the most comprehensive labour legislation and the Department of Employment and Labour is fully funded with enormous investments in the Public Investment Corporation.

One of the biggest issues is the ignorance of both employers and employees, and it is my understanding that the department is in the process of rolling out more information via seminars, radio broadcasts and newspaper adverts.

It’s vital for employers to ensure that the workplace is conducive to health and safety and that every workplace does everything in its power to avoid accidents and spread of diseases.

A healthy workplace is clearly conducive to greater productivity and saves everyone time, trouble and money.