Compliance isn’t just red tape. Registering with the Compensation Fund gives farmers peace of mind, protects employees, and ensures farms continue running when accidents happen. Stephan Pietersen, the founder of Work Accident Support, explains more in this episode of the Farmer Mentor series.
Farming is often associated with the challenges of weather, markets, and production, but workplace accidents and labour law compliance are just as critical to a farm’s success. An often-overlooked area of agricultural management is how farmers handle workplace injuries and their obligations under South Africa’s labour legislation, particularly the Compensation for Occupational Injuries and Diseases Act (Coida).
To unpack this complex topic, we spoke to Stephan Pietersen, founder of Work Accident Support, who helps farmers and farmworkers navigate the rules and requirements of Coida.
There are many employment labour laws in South Africa, and one of them is the administration of work accidents, Pietersen explains.
“My aim is to make sure farmers and their workers have the right information to manage accidents efficiently and to understand how to deal with government processes when something goes wrong,” he says.
Common mistakes farmers make
The Compensation for Occupational Injuries and Diseases Act has been around in various forms since 1941, with its most recent amendment in 2022. It requires all employers, including farmers, to register with the department of employment and labour’s Compensation Fund and pay an annual fee. This fund acts as a form of insurance to cover workers who are injured or contract diseases at work.
It doesn’t matter if you’re a small-scale farmer with one worker or a large commercial operation, says Pietersen. “As long as you employ someone and pay them a wage or salary, you must register with the fund.”
According to Pietersen, farmers often stumble when it comes to registration. Livestock farmers and crop farmers fall into different categories, and mixed farmers need to register differently. Choosing the wrong subclass can mean paying more than necessary.
Another common mistake is declaring earnings. Not all earnings need to be declared, but many farmers declare too much, which results in higher contributions than are actually required.
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The act plays a particularly important role in agriculture, where workers are often exposed to risks from machinery, tools, and unpredictable working conditions. Pietersen stresses that the law covers any personal injury that requires medical treatment.
It could be a small cut, the loss of a finger, or even more severe cases. If a worker dies as a result of their work, their family can also qualify for benefits such as funeral expenses, pensions, and even bursaries for children to study further.
Farmers are required to continue paying workers’ wages during recovery, but they can claim these amounts back from the fund. Medical expenses are also covered, which gives farmworkers access to private healthcare that might otherwise be out of reach.
The risks of late reporting
When an accident happens, farmers must act quickly. Pietersen notes that the claim must be registered within seven days of being informed of the incident, and the worker should be sent for medical treatment immediately.
A prescribed form, medical report, copy of the worker’s ID and a payslip must then be submitted to the Compensation Fund. If the claim is not submitted within seven days, it can still be lodged within a year, but there are risks.
“If it’s not registered on time, the Compensation Fund can pay the benefits, but then claim the money back from the farmer,” Pietersen warns. “They are even looking at changing the law to include penalties for late submissions.”
For farmers preparing to employ workers for the first time, Pietersen advises planning carefully from the start.
“You can’t look at your business in isolation. The moment you appoint someone, you have seven days to register your company with the Compensation Fund. You’ll need to provide an estimate of salaries and wages, and based on that, the government determines your fee.”
Alongside Coida, farmers must also consider unemployment insurance if their employees work at least 24 hours per month.
While some farmers may see Coida as just another layer of bureaucracy, Pietersen believes compliance brings peace of mind. “Once an accident happens, you’ll know your worker is covered, their medical care is taken care of, and your business won’t collapse under the weight of unexpected costs. It’s about protecting both your workers and your farm.”
By ensuring compliance with Coida, farmers not only avoid legal risks but also safeguard their employees’ well-being and the sustainability of their operations.
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