COMPENSATION FOR

OCCUPATIONAL INJURIES AND

DISEASES ACT,1993

ACT NO 130 OF 1993FLM Hyera

What is compensation • Reasonable medical expenses• Replacement of income – 75% of salary up to two years – Thereafter

regarded as permanent disablement.• Compensation for permanent disablement – schedule 3• Burial costs

LONG TITLE• To provide for 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; and to provide for matters connected therewith.

Contents ( 11 Chapters)

• Definitions (44)• Administration• Compensation

fund• Compensation• Claims• Calculation of

Comp.

• Occupational Diseases

• Medical Aid• Obligations of

employers• Legal procedures• General

Administration (2,3,4)• Commissioner (appointed by Minister of Labour)• Staff• Remunerated out of Compensation Fund• Delegation of Powers• Functions of CC• Power to subpoena• Appointment of assessors• The Compensation Board

Compensation Board members• Compensation commissioner as Chair• Two nominated by Minister, one recommended by

Minister of Health• Chief Inspector (OHSA)• Rand Mutual• Federated Employers• HPCSA• Three representing Employers• Five representing Employees

Compensation Fund• Income

– Assessments paid by employers– Penalties and Fines– Interest on Investments of reserves

• Application– Compensation to employees– Reserves– Administration– Medical Costs– Assessors and Witnesses

Compensation• Right of employee to compensation• Injuries or diseases outside the RSA• Seamen and Airmen• Mutual Associations• Compensation can not be alienated, not part of deceased’s estate.• The employee cannot recover damages or compensation from the

employer

Compensation• The compensation fund pays:– Reasonable medical expenses– Replacement of income - 75% of salary, up to R135 000

per year, for 2 years- then considered as permanent– Permanent Disability payments and– Funeral cost

Claims processing• Notice of accident by the employee to employer• Notice of accident by Employer to the Commissioner• Commissioner may make an enquiry• Employee must submit to medical examination• Notice of accident within 12 months• Parties to a claim may appear before the commissioner at a

formal hearing

Calculation of Compensation• Temporary Total :

– Item 1 Schedule 4 : 75% of salary– Employer liable for compensation for first 3 months, then

refunded by Compensation Commission

• Permanent :– Schedule 4– Death of employee

• Increased Compensation if Employer was negligent

Permanent Disability• Schedule 2 + 4• 100% disabled - Pension 75% of salary• More than 30% disabled - Pension calculated as %

disablement of 75% of salary• 30% Disabled 15 times monthly earnings• Less than 30% - Lump sum % disablement• Fatal = Lump sum + pension to dependants

SCHEDULE II• Loss of two limbs 100%• Total loss of sight 100%• Loss of arm at elbow 55%• Loss of hand at wrist 50%• Loss of index finger, 3 phalanges 10%

• loss of little finger, one phalanx 2%

Occupational Diseases• Schedule 3• Notice of disease by employee and employer• Medical Advisory panels involvement • Amendments to schedule 3 after publication in Government

Gazette

Schedule 3

• Disease– Byssinosis– Leukemia– Decompression disease– Hearing impairment– Pnemoconiosis– Tuberculosis– Occupational asthma– Mesothelioma

• Work– Flax, cotton, sisal– Benzene– Abnormal pressure

– Excessive noise– Fibrogenic dust– M.tuberculosis– Sensitising agents– Asbestos

Medical Aid• First Aid – employer (OHSA)• Reasonable medical expenses• Medical reports by a doctor• Contributions by employees prohibited• Medical aid provided by employer (sec 78)

Obligations of Employers• Register with Compensation Commission (CC)• Keep records (register) of wages of employees – 4 years• Employer furnish returns of earnings• Assessment of Employer• Contractor must be registered with CC

Employers exempt from Assessment -

• Employers individually are liable to:– Employees of the State– Local authority with exemption certificate– Registered with a Mutual association - policy of insurance– Assessments to be paid by the employer

Legal + General Matters• Review by CC for: • Objections and Appeal within 90 days by the presiding officer,

2 assessors and medical assessor. • CC may state case for the Supreme Court• Penalties for false statements for Schedules 2, 3, 4

Other matters• First medical report – full details are important• Report submitted within 14 days of examining• Progress reports • Final medical report• Legal documents