How to Get a COIDA Letter of Good Standing: Complete Guide 2026

The <a href='/glossary#coida'>Compensation for Occupational Injuries and Diseases Act</a> (COIDA) Letter of Good Standing is one of the most universally required documents in South African government <a href='/sa-tenders/categories/supplies'>procurement</a>. Virtually every <a href='/glossary#rfq'>RFQ</a>, <a href='/glossary#rfp'>RFP</a>, and tender issued by national departments, provincial governments, municipalities, and state-owned enterprises requires proof of COIDA compliance. Without a valid Letter of Good Standing (LoGS), your tender submission will be disqualified at the mandatory compliance stage—regardless of your pricing or capability.

This comprehensive guide explains the <a href='/glossary#coida'>COIDA</a> requirements, step-by-step registration process, how to obtain your Letter of Good Standing via the CompEasy portal, and troubleshooting common issues that delay tender submissions.

What is COIDA and Why Does It Matter?

The <a href='/glossary#coida'>Compensation for Occupational Injuries and Diseases Act</a> (Act 130 of 1993) establishes a no-fault compensation system for employees injured at work or who contract occupational diseases. Employers pay annual assessments to the Compensation Fund, which then compensates injured workers without the need for litigation.

The <strong>Letter of Good Standing</strong> (also known as a Certificate of Good Standing or <a href='/glossary#coida'>COIDA</a> clearance) confirms that your business is registered with the Compensation Fund and that all assessments are paid up to date. It serves as proof of compliance to government <a href='/sa-tenders/categories/supplies'>procurement</a> officials.

Why COIDA Compliance is Non-Negotiable for Tenders

• <strong>Legal Requirement:</strong> The <a href='/glossary#coida'>COIDA</a> Act requires ALL employers with one or more employees to register and contribute
• <strong>Tender Mandatory Document:</strong> Listed as mandatory in virtually every government tender document's compliance checklist
• <strong>CSD Verification:</strong> The <a href='/glossary#csd'>Central Supplier Database</a> (CSD) verifies <a href='/glossary#coida'>COIDA</a> status for supplier registration
• <strong>Contract Condition:</strong> Many government contracts include <a href='/glossary#coida'>COIDA</a> compliance as an ongoing contractual obligation
• <strong>Subcontractor Requirement:</strong> Principal contractors must verify subcontractor <a href='/glossary#coida'>COIDA</a> compliance

Who Needs COIDA Registration?

<a href='/glossary#coida'>COIDA</a> registration is mandatory for the following:

• <strong>All employers:</strong> Any business with one or more employees (including part-time, contract, and temporary workers)
• <strong>Labour brokers and TES providers:</strong> Temporary Employment Services must cover workers they place
• <strong>Contractors:</strong> <a href='/sa-tenders/categories/construction'>Construction</a> contractors, cleaning contractors, security companies, etc.
• <strong>Companies with directors on payroll:</strong> If directors receive salaries/remuneration, registration applies
• <strong>Close corporations:</strong> If members are involved in the business and work, they should be covered

COIDA Registration Requirements

Documents Required for New Employer Registration

• <a href='/glossary#cipc'>CIPC</a> company registration documents (COR14.3, COR15.1, or CM1)
• Certified ID copies of directors/members
• Proof of physical business address (utility bill, lease agreement)
• Description of business activities and industry sector
• Number of employees and annual earnings/payroll information
• Banking details for payment
• Tax reference number

Step-by-Step Compensation Fund Registration

Online Registration via CompEasy Portal

1. <strong>Access CompEasy:</strong> Navigate to https://compeasy.labour.gov.za
   (the official DoEL online portal)
2. <strong>Create Account:</strong> Register as a new user with your email and create a secure password
3. <strong>Verify Email:</strong> Confirm your email address via the verification link
4. <strong>Complete Form W.As.2:</strong> Fill in the Employer Registration form with all company details
5. <strong>Provide Employee Data:</strong> Enter number of employees and estimated annual earnings
6. <strong>Upload Documents:</strong> Attach <a href='/glossary#cipc'>CIPC</a> registration, ID documents, and proof of address
7. <strong>Submit Application:</strong> Submit the registration application
8. <strong>Receive Registration Number:</strong> Upon approval, you'll be assigned a Compensation Fund employer registration number
9. <strong>First Return of Earnings:</strong> Submit your first W.As.8 (Annual Return of Earnings) form
10. <strong>Pay Assessment:</strong> Pay the calculated assessment based on industry class and earnings

How to Obtain Your Letter of Good Standing

Online Method (Preferred)

1. <strong>Log into CompEasy:</strong> Access your employer account at https://compeasy.labour.gov.za
2. <strong>Check Account Status:</strong> Verify all returns are submitted and assessments are paid
3. <strong>Navigate to LoGS:</strong> Click on '<a href='/glossary#coida'>Letter of Good Standing</a>' or 'Generate LoGS' option
4. <strong>Generate Letter:</strong> If compliant, the letter generates immediately as a PDF
5. <strong>Download and Print:</strong> Save the PDF and print for tender submission

<strong>Note:</strong> The <a href='/glossary#coida'>Letter of Good Standing</a> is generated instantly if your account is in good standing. If there are outstanding items, the system will indicate what needs to be resolved before the letter can be issued.

Manual/Walk-in Method

If you cannot access CompEasy or prefer in-person service:

1. Visit your provincial Department of Employment and Labour office
2. Bring your employer registration number and company details
3. Request a <a href='/glossary#coida'>Letter of Good Standing</a> at the Compensation Fund counter
4. Processing may take 2-5 working days for manual requests

COIDA Assessment Rates 2026

Assessment rates vary by industry and risk class. Higher-risk industries pay more because their workers are more likely to be injured. Rates are expressed as a percentage of payroll or per R100 of earnings.

<strong>Calculation Example:</strong> A <a href='/sa-tenders/categories/construction'>construction</a> company with annual payroll of R2,000,000 at a rate of R1.50 per R100 would pay: R2,000,000 x 1.50 ÷ 100 = R30,000 annual assessment.

Common COIDA Issues and Solutions

Outstanding Returns

<strong>Issue:</strong> Cannot generate <a href='/glossary#coida'>Letter of Good Standing</a> because system shows outstanding W.As.8 returns.

<strong>Solution:</strong> Submit all outstanding Annual Return of Earnings (W.As.8) forms via CompEasy. Even if your company had no earnings or was dormant, you must submit a 'nil return' to clear the period. Returns are required for every financial year since registration.

Payment Not Reflecting

<strong>Issue:</strong> Assessment paid but system still shows outstanding balance, preventing LoGS generation.

<strong>Solution:</strong> Upload proof of payment (POP) via CompEasy using the 'Submit Proof of Payment' function. Include reference numbers and clear bank statement showing payment. Allow 5-7 working days for manual allocation. For urgent tenders, contact the Compensation Fund directly with POP and request expedited processing.

Company Details Incorrect

<strong>Issue:</strong> Company name, registration number, or other details are incorrect on LoGS.

<strong>Solution:</strong> Submit a change of particulars via CompEasy or in writing to the Compensation Fund. Include supporting <a href='/glossary#cipc'>CIPC</a> documentation showing correct details. Processing may take 2-4 weeks.

New Company - No Registration Number

<strong>Issue:</strong> Newly formed company needs to bid on tender but doesn't yet have <a href='/glossary#coida'>COIDA</a> registration.

<strong>Solution:</strong> Register immediately via CompEasy. New employer registrations are typically processed within 7-14 working days. Submit first return and pay assessment to achieve good standing status. For urgent tenders, contact Compensation Fund to expedite. Some tenders accept proof of application pending registration.

Letter of Good Standing Validity

• <strong>Standard Validity:</strong> Most LoGS letters are valid for 12 months from issue date
• <strong>Tender Requirements:</strong> Many tenders specify LoGS must be dated within 6 months of tender closing date
• <strong>Some Tenders:</strong> May require LoGS dated within 3 months—always check tender document requirements
• <strong>Best Practice:</strong> Generate a fresh LoGS for each tender submission to ensure validity

COIDA and CSD Registration

The <a href='/glossary#csd'>Central Supplier Database</a> (CSD) requires <a href='/glossary#coida'>COIDA</a> information as part of supplier verification. When registering on CSD:

• Enter your Compensation Fund employer registration number
• <a href='/glossary#csd'>CSD</a> verification will check your status with the Compensation Fund
• Non-compliance may prevent <a href='/glossary#csd'>CSD</a> verification completion
• Keep your <a href='/glossary#coida'>COIDA</a> status current to maintain <a href='/glossary#csd'>CSD</a> compliance

COIDA Exemption for Sole Proprietors

If you operate as a sole proprietor or one-person company with <strong>no employees</strong>, you may be exempt from <a href='/glossary#coida'>COIDA</a> registration. However, for tender purposes, you typically need to provide one of the following:

• Sworn affidavit declaring you have no employees and are <a href='/glossary#coida'>COIDA</a> exempt
• Declaration on company letterhead signed by owner/director
• Some tenders provide a specific exemption declaration form to complete

Related Tender Compliance Documents

<a href='/glossary#coida'>COIDA</a> Letter of Good Standing is typically required alongside other mandatory tender documents:

• <a href='/blog/how-to-register-on-csd'>CSD Registration</a> - <a href='/glossary#csd'>Central Supplier Database</a> registration
• <a href='/blog/bbbee-compliance-checklist'>B-BBEE Certificate</a> - <a href='/glossary#b-bbee'>Broad-Based Black Economic Empowerment</a>
• <a href='/glossary#tcc'>Tax Compliance Status</a> (TCS) - SARS tax clearance verification
• <a href='/blog/cidb-guide-construction-tenders'>CIDB Registration</a> - For <a href='/sa-tenders/categories/construction'>construction</a> tenders
• UIF Compliance - <a href='/glossary#uif'>Unemployment Insurance Fund</a> registration