From Penalties to Rehabilitation: Understanding the 2026 COIDA Amendments and Its Impact on Workplace Risk

On 23 January 2026, the implementation of key provisions of the COIDA Amendment Act, 10 of 2022 was gazetted into law (“Amendment Act”). The effect of this for employers and employees is crucial to understand as it has introduced a comprehensive enforcement regime with harsher administrative penalties for employers who are non-compliant and an extended prescription period, allowing employees who have work-related injuries or diseases to bring claims within three years after an accident, previously being twelve months. Additionally, the Amendment Act places a strong emphasis on the need for employers to provide clinical, vocational, and social rehabilitation to employees who have sustained work-related injuries or occupational diseases to enable them to either return to work and/or reduce any disability. Lastly, the Amendment Act introduces a new inspectorate framework whereby inspectors are authorised with a wide range of powers to determine the compliance of employers in terms of COIDA. If the inspector finds the employer to be non-compliant, this may ultimately result in compliance orders from the Labour Court.

Administrative penalties take over criminal offences

The Amendment Act brings about higher penalties for employers who are non-compliant. If employers fail to report an accident within seven days of when it became aware of it, it could be liable to a penalty of 10% of the actual or estimated annual earnings of that particular year. Further, if the employer fails to furnish further particulars of the accident or injury, as requested by the Commissioner, it could be liable to a penalty of 10% plus interest on actual earnings declared to the Compensation Fund. Additionally, if the employer does not report the accident in the prescribed manner within seven days, the Commissioner may also impose a penalty equal to the full amount of compensation payable plus interest from the date of the accident. It is, therefore, imperative that employers implement or enhance their incident reporting protocols as well as prioritise requests from the Commissioner to stay compliant with COIDA.

Extension of Various Periods Including Prescription

The prescription period has been extended from twelve months and now provides that employees may bring a claim within three years from the date of an accident or injury occurring in the workplace. This could increase an employer’s exposure to latent claims and may require them to enhance their document retention and incident tracking protocols. Additionally, the period for objections and appeals against decisions of the Commissioner has been extended from 180 days to twelve months.

Following the extension of these various provisions, employers are required to retain a register of their employees and employees’ earnings for a period of at least five years. If employers do not comply with this requirement, employers could be guilty of an offence and be liable to a penalty not exceeding 10% of the actual or estimated annual assessments for the period for which the employer failed to keep the records.

The Move to Rehabilitation

The Amendment Act has introduced an obligation on the Compensation Fund and the employer individually liable or licensee, to provide facilities, services and benefits aimed at rehabilitating employees suffering from occupational injuries or diseases to return to their work or to reduce any disability resulting from their injuries or diseases. The insertion of this provision in the Amendment Act sets out what the rehabilitation benefits may be, this includes, clinical rehabilitation and the provision of assistive devices, vocational rehabilitations to assist an employee to maintain employment and social rehabilitation to assist in restoring an employee’s independence. It is important to note that an employer who participates in this rehabilitation programmes may receive a rebate on any assessment paid or payable by them at the discretion of the Commissioner.

Inspectorate Powers

Finally, the Amendment Act introduces a new inspectorate framework. This new provision gives an inspector a wide range of powers,  including the power to enter an employer’s workplace; inspect and question any person about any record; make copies of any record or document; remove any article; substance or machinery present at the workplace; inspect or question any work performed; and any other function that is necessary for monitoring or enforcing compliance.

In light of these amendments, it is clear that there is higher expectation on employers to not only report injuries on duty to the Compensation Fund but to also keep an accurate, up to date record of injuries on duty and to rehabilitate employees who have been injured on duty. It is therefore important for employers to revisit their internal policies and practices and ensure that they are in line with the provisions of Amendment Act and that the necessary training is rolled out to employees who are responsible for the management of injuries on duty.