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What is the significance of a “Letter of Good Standing/Section 89 certificate”?

The Compensation for Occupational Injuries and Diseases Act, 130 of 1993 (COID) is the legislation that is applicable in the event of an employee who is injured, becomes ill or dies due to an occupational injury or disease.  A claim for compensation will arise when an employee is involved in an incident that results in disablement or death, or when an employee has contracted an occupational disease or other disease arising out of his/her employment

Only   persons employed as casual and permanent employees and dependants of employees are entitled to compensation for injuries suffered or diseases contracted during employment, this also includes persons who are paid by a labour broker to do work for others. The staff of contractor’s will be regarded as the principle’s employees if the contractor is not registered and paid up with the Compensation Commissioner.

This is the main reason the principle requires a contractor to supply a Letter of Good Standing valid for the duration of the appointed contract.  The Act makes provision for the employers to recover expenses incurred as a result of the contractor not being in good standing with the Commissioner.

A “Letter of Good Standing” is issued by the Compensation Commissioner and is valid for 1 year, and must be renewed annually.