COIDA: The Quiet Law That Just Got Very Loud

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When compliance stops being background noise

For years, COIDA sat quietly in the background. Employers registered, submitted returns, and carried on with business. Unless a serious injury occurred, it rarely demanded attention. That has changed.

Most of the 2026 amendments commenced on 23 January 2026, with specific provisions following on 1 February 2026 and 1 April 2026. What was once a largely administrative regime now carries real-world enforcement, sharper timelines, and penalties that actually bite. COIDA is no longer passive, and employers can no longer afford to be either.

What’s changed—and why it matters

1. Longer window to claim (and more exposure for you)

Employees now have three years to lodge an injury or disease claim (up from a year in practice), meaning poorly recorded or unresolved incidents can resurface long after they occurred, creating avoidable compliance and financial exposure. If your incident capture and record‑keeping are weak, your risk profile just went up.

2. Coverage is broader and explicit

Including subcontractors and domestic workers

COIDA applies wherever someone works for you, including domestic workers. Using subcontractors doesn’t insulate you: if a contractor (or their subs) isn’t COIDA‑compliant, responsibility can shift back to the party who arranged the work. There are no remaining grey areas: if work is performed for you, you carry COIDA exposure unless you’ve checked (and can prove) everyone’s status. COIDA exposure must be understood and managed.

3. Reporting deadlines and penalties are now real

COIDA has moved away from rarely used criminal sanctions and now relies on administrative penalties that are easier to impose and more likely to be enforced. Fail to report an accident to the Commissioner within 7 days and you face an administrative penalty of 10% of actual or estimated annual earnings for that year. Knowingly fail to report within 7 days, and you can be hit with a penalty equal to the full amount of compensation payable plus interest from the date of the accident. Refuse to provide requested additional information and the 10% penalty applies again. What once felt like paperwork now carries real consequences and paperwork delays are now expensive.

4. Inspections have teeth (and can happen anytime)

Inspectors have wider powers to enter workplaces, examine and copy records, require disclosures, issue compliance orders, and escalate to the Labour Court. COIDA compliance can now be assessed even without a triggering incident. Treat yourself as “always audit‑ready.”

5. Transport you organise can trigger liability

Employer-arranged transport, including informal lifts or regular pick-ups, can trigger COIDA exposure and may arise from pick‑up to drop‑off: coverage starts when the employee arrives at the employer‑designated pick‑up point and ends at the employer‑designated drop‑off. If you provide lifts or run shuttles, your “workday risk” might begin long before the clock does.

6. Road accidents and the RAF—clearer boundaries

The amendment of Number 18 – section 36 – subsection (5) expressly excludes the Road Accident Fund (RAF) from being treated as a “third party” against whom the Compensation Fund or a licensed insurer may claim recoupment of damages or compensation paid under the Act. Also, subsection (6) states that an employee is not entitled to COIDA benefits where a road accident did not arise out of and in the course of employment. The lines are drawn to prevent double‑dipping and to focus on work‑related causation.

7. Medical reports and reimbursement

Where an employee obtains a medical report at their own expense under the relevant section, the Compensation Fund, acting through the Commissioner, is responsible for reimbursing the full cost once the report is received and accepted. In practice, however, the employer remains procedurally involved: the report must be linked to a valid COIDA claim, supported by the required accident and employment documentation, and properly submitted into the claim process.

Budget, process and documentation should anticipate this.

8. Record‑keeping is now a protection tool (and a penalty risk)

Employers must retain all required COIDA-related records for five years and produce them on request. Failure brings a penalty of 10% of the actual or estimated annual assessment for the period you failed to keep records. Incomplete files are no longer minor oversights—they’re liabilities.

9. Compensation decisions aren’t “once and done”

For permanent disability, the Commissioner may review claims at any time (as contemplated under section 90). Expect more active post‑award oversight.

10. “Earnings” definition is changing—watch the commencement

The amended definition of “earnings” is aligned to the Income Tax Act’s Fourth Schedule, but that specific change has not yet commenced. When it does, it will materially affect assessments, compensation calculations and how penalties are computed. Track this closely to prevent downstream recalculations.

11. Rehabilitation and return‑to‑work are expected, not optional

The Act’s emphasis on rehabilitation, reintegration and modified duties is clear. Employers are expected to cooperate in rehabilitation and actively support a safe return to work where reasonably possible—across temporary and permanent injuries. Build this into your IOD workflow.

12. Mandators and contractors—no more grey zones

The amendments clarify mandators (principals) and contractors/sub‑contractors: ensure all are registered with the Compensation Fund. An employer may pay on behalf of mandators/contractors and then recover those amounts. Principal contractors must verify downstream compliance before a spade hits the ground.

What will affect your IOD procedures the most

  • Accident reporting within 7 days → automatic penalties for late or non‑reporting; heavier penalties (full compensation + interest) for knowingly failing to report. Tighten your day‑zero/Day‑7 playbook.
  • Employer‑arranged transport → coverage from pick‑up to drop‑off; review lift clubs, shuttles and informal lifts.
  • Records for five years → implement retention and retrieval that can survive an unannounced inspection.
  • Rehab & return‑to‑work → integrate modified duties and rehabilitation tracking into HR/line management routines.
  • Contractor/mandator due diligence → verify Compensation Fund registration before onboarding and at renewal.
  • Earnings definition (pending commencement) → prepare payroll/assessment models to pivot when the change goes live.

What employers should be doing now

At a minimum, employers should:

  1. Confirm Compensation Fund registration status for your entity and all contractors/sub‑contractors; keep proof on file.
  2. Rewrite your incident‑to‑claim timeline: Day 0 capture; Day 1–3 medicals and documentation; Day 7 submission to the Commissioner—no exceptions.  
  3. Stand up a five‑year record system (indexed, searchable, inspector‑ready) for accidents, earnings, payments and correspondence.
  4. Map transport exposure: document routes, pick‑up points, and communicate rules where you provide or arrange transport.
  5. Embed rehabilitation & RTW into policy and practice; pre‑define modified duties and approval thresholds.
  6. Prepare for “earnings” change: scenario‑test assessments and cash‑flow impact for when the Fourth Schedule‑aligned definition commences.
  7. Train supervisors on what to do in the first hour after an incident; supervisors make or break your Day‑7 compliance.
  8. Review budgets to account for additional costs arising from COIDA compliance, including rehabilitation-related expenses and appropriate risk accruals linked to extended incapacity or return-to-work delays.
  9. Update risk registers to reflect the financial, operational, and compliance impact of the COIDA amendments, including increased exposure where rehabilitation, earnings calculations, or contractor arrangements are not effectively managed.

If these have not been reviewed since the amendments, compliance is likely lagging behind the law.

Appendix: commencement map (high level)

  • 23 January 2026 → General commencement of the COIDA Amendment Act provisions (with exception of section 1(g) which added the Tax Act and section 1(h) paragraphs (i – iii) which added law updates for the exclusion of persons not covered under the COID Act.).
  • 1 February 2026 → Selected provisions (items numbered 3–6 in the amending Act) dealing primarily with Board changes commenced.
  • 1 April 2026 → Additional specified provisions commences, including 19(a) & (b), 20(c), 28(c), 36(1), 50(3), 52, 54(1) & (2). Use this window to re‑check that your penalties/compliance logic lines up with the operative text now in force.

Note on “earnings”: The amendment aligning the COIDA “earnings” definition with the Income Tax Act (Fourth Schedule) has not yet commenced—track the official notice to know when to switch your calculations.

How Pinion helps

COIDA is louder now, and “we’ll sort it out when it happens” is a costly strategy. Pinion helps employers stay ahead of enforcement with practical systems that withstand inspections: stronger OHS controls to reduce incidents, structured injury and rehabilitation management to cut downtime, and COIDA processes that hold up under scrutiny—reporting timelines, record‑keeping, contractor checks and transport risk included.

Pinion also supports employers with input into COIDA-related budgeting, helping quantify likely cost impacts and risk accruals, and reviews risk registers to ensure these legislative changes are properly reflected and mitigated.

If you want to be audit ready, reduce disruption and protect your business when old claims resurface, Pinion helps you close the gaps before an inspector does. ‑ready, reduce disruption and protect your business when old claims resurface,

Visit our website or email us at info@pinionza.com for more information.

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