Domestic workers now qualify for compensation fund
The news that domestic workers now qualify for workers compensation has come at a time where any kind of good news was needed.
A local domestic worker who spoke on condition of anonymity told Herald she welcomes the ruling.
“It makes us happy to know that the government recognizes us and that the right thing will be done, some employers would tell you to go to the clinic and that was it,” she said.
The National Employers’ Labour Association (NELA) said in in a statement that on 19 November 2020 the Constitutional Court ruled in Mahlangu and Another v Minister of Labour and Others that parts of the Compensation for Occupational Injuries and Diseases Act (COIDA) are unconstitutional as it excludes domestic workers employed in private households from the definition of ‘employee’.
NELA specialises in the domestic sector to assist employers of domestic workers in dispute resolution matters at CCMA and bargaining councils, as well as providing a digital compliance platform for its employer members.
Weighing in on the new legislation that domestic staff now qualify for workers compensation.
“The bottom line is that we, as employers, can’t wait for the amendment to be promulgated because the amendment is retrospective.
If your domestic employee is injured on your property today, for example, they will be entitled to compensation.
The legislation states that cases dating back to 2004 will be eligible for compensation,” said NELA’s assistant general secretary, Albert van der Merwe.
He said along with the Unemployment Insurance Fund (UIF), employers will need to pay towards the COIDA to ensure their domestic employee(s) are covered, as commercial businesses currently do.
“It is still unclear as to how the payment process; the assessment process and compensation repayments processes will work.
What we do know is that the current processes and procedures of the Workmans’ Compensation are not suitable to manage the domestic sector and employers need the correct information and representation,” said van der Merwe.
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He added that South Africa faces a big challenge when it comes to employers of domestic staff being legally compliant.
“Many employers do not understand that the definition of ‘domestic worker’ includes gardeners, nannies, caregivers and chauffeurs employed in private households.
To be compliant, employers not only need to register their employees for UIF but must also meet the other requirements stipulated in Sectoral Determination 7 – Domestic Workers, such as contract of employment, method of time keeping, overtime and Sunday time remuneration, recording of all leave types and provision of payslips, just to mention a few.
The COIDA is going to be another aspect of non-compliance if not managed properly,” van der Merwe said.
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Employers also need to understand that they should participate in a collective forum to ensure they are adequately represented at the Department of Employment and Labour (DEL), the South African Revenue Service (SARS) and in legislative matters.
“We will be running regular information and training sessions for employers in the new year covering legislative changes as they are revealed and the subsequent implications of these for employers.”
Van der Merwe believes changes in the sector are inevitable and employers need to be prepared on how best to handle these.
“Compliance is key and eliminates unnecessary financial risks for employers and friction in the workplace.
As an employer it can be challenging keeping up-to-date on how to remain compliant.
That’s why it’s so important to support organisations proficient in doing it for you,” he concludes.
