Who pays if an employee gets injured while attending a team building exercise?

Some companies take employees on team-building exercises outside the office to boost staff morale. However, unforeseen circumstances can happen.

The Compensation for Occupational Injuries and Diseases (COIDA) was established to provide financial and medical benefits to employees who suffer workplace injuries or occupational diseases.

“On 17 April 2023, the COIDA Amendment Act was published. The COIDA Amendment Act aims to amend, substitute, insert, delete and repeal certain definitions and sections of COIDA.

“The commencement date of these amendments has yet to be announced,” said CDH employment experts.

Who pays the injured employee?

To answer the question, CDH experts said that if the employer approves the team-building event and encourages and expects personnel to attend, the employee will likely be able to claim from the Compensation Fund.

The draft amendments of the Act include expanded coverage for domestic workers, stricter penalties for non-compliance, and the inclusion of mental health conditions as compensable occupational diseases.  

The amendments and draft regulations have not yet come into effect.

Please keep in mind that this article seeks to explain the implications of the amendments should they come into effect as they currently are.

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Employees who get paid under the act currently

Kgodisho Phashe, Senior Associate in CDH’s Employment Law practice, told The Citizen that the Act currently seeks to provide compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees in the course of their employment or for death resulting from such injuries or diseases.

The compensation is made by covering medical expenses and rehabilitation costs arising from workplace incidents.

“In addition, the Act offers financial support to dependents in the event of an employee’s death due to a work-related injury or disease.

“Establish a framework for the reporting and processing of claims efficiently.”

Amendments to provide broader protection for employees

He said the amendments seek to provide broader protection for employees, enhance the efficiency of the Compensation Fund, and ensure that the legislation keeps pace with changes in the world of work.

Phashe believes the changes strongly emphasise employee welfare, workplace inclusivity, and employer accountability.

“By extending compensation to new categories of workers and improving the claims process, the amendments seek to create a more comprehensive and accessible framework for workplace injury compensation.”

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Updated definition of workplace accidents

He added that the core definition of a workplace accident remains unchanged, however, the scope of what qualifies as an accident has been expanded.

The amendments now include employees injured outside the country due to work commitments qualifying for compensation.

If employees get injured while undergoing work-related training in pursuance of their employer’s business, they will also qualify for compensation.

An employee will qualify for compensation if an accident occurs during employment when they are being transported by or on behalf of the employer to and from the place of employment or any location required for work purposes.

Significant updates and their implications

Phashe said some significant updates and their implications would include transferring certain functions to the commissioner.

“Certain functions previously performed by the Director-General will now be carried out by the commissioner, improving administrative efficiency.”

Another change is the rehabilitation, reintegration, and return-to-work programs.

“New provisions focus on assisting occupationally injured and diseased employees in returning to work through structured rehabilitation and reintegration programs.

“The commissioner now has the authority to review pension claims and awards, providing an additional layer of scrutiny and fairness in the compensation process.”

He added that employers should note that those who fail to comply with COIDA provisions may now face administrative penalties, strengthening enforcement mechanisms.

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