Hiring staff: the employer compliance checklist
Short answer
An employer with staff registers with the Compensation Fund under COIDA, submits a return of earnings every year, pays the assessment, and can then download a letter of good standing. Tenders and large clients often ask for that letter.
These three steps repeat every year, so the checklist doubles as your annual routine. Written for: business owners taking on their first employee, and employers whose letter of good standing is not issuing.
Guides in this checklist last checked 3 November 2026. Confirm on each official portal before you submit.
How to register for COIDA (workmen's compensation)
Why this step: Register as an employer once. You need this before you can submit anything.
COIDA is the Compensation for Occupational Injuries and Diseases Act, South Africa's workmen's compensation law. If you employ anyone, including a domestic worker, you must register with the Compensation Fund, online at cfonline.labour.gov.za or on form W.As.2. There is no registration fee we could find. You then pay an annual assessment based on your payroll.
No fee listed for registering (you pay the assessment)7 days after your first employee, per published guidesUp to 10% penalty for failing to register or file
How to submit your Return of Earnings (ROE) online
Why this step: Every year you declare what you paid your employees. The Fund then raises your assessment.
Submit your annual Return of Earnings (ROE) online at cfonline.labour.gov.za. Declare what you paid employees from 1 March to the end of February. The 2026 season ran from 1 April to 30 June 2026 and has closed. Late returns can attract a penalty of up to 10%. Pay the assessment within 30 days of the invoice.
1 Apr to 30 Jun 2026 ROE season (now closed)Up to 10% penalty on a late return30 days to pay after the assessment invoice
How to get and verify a Department of Labour letter of good standing
Why this step: Once the return is in and the assessment is paid, download the letter that proves it.
A COIDA letter of good standing is issued by the Compensation Fund, part of the Department of Employment and Labour. To get one, register with the Fund, file your return of earnings (ROE), then pay the assessment or keep an instalment arrangement up to date. You download the letter from the Fund's online system.
No fee for the letter (you pay your assessment)Days once your payment reflectsYearly renew each ROE season
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