Forklift operators in a warehouse - casual, contract and foreign workers are all covered by COIDA

COIDA Cover for Foreign, Casual and Contract Workers: What Employers Must Know

Quick Answer

Are foreign, casual and contract workers covered by COIDA?

Yes. COIDA covers any person who works under a contract of service for remuneration – including casual, part-time, seasonal, fixed-term and foreign-national workers, even from the first shift. Their earnings must be included in the employer’s annual Return of Earnings.

Key Terms Explained

Employee
Under COIDA, broadly any person who works for an employer under a contract of service for payment, regardless of hours or nationality.
Labour broker
A temporary employment service that supplies workers to clients; the broker is the COIDA employer of those workers.
Independent contractor
A person running their own business who is genuinely independent of the client – not an employee under COIDA.
Return of Earnings
The annual payroll declaration every employer submits so the Compensation Fund can calculate the assessment.

“They are only casuals.” “He is a contractor.” “She does not have a work permit.” Employers reach for all three when a workplace injury happens – and all three fail. COIDA’s definition of employee is deliberately wide: almost anyone who works for you for payment is covered, and their earnings must appear in your Return of Earnings. Getting this wrong means under-declared payroll, a wrong assessment, and claims that bounce. Here is what the law actually says.

Forklift operators in a warehouse - casual, contract and foreign workers are all covered by COIDA
Casual, part-time, contract and foreign-national workers count as employees under COIDA. Image: Wikimedia Commons.

Who Counts as an Employee Under COIDA?

Under COIDA an employee is broadly any person who works under a contract of service – express or implied, written or verbal – for remuneration. In practice that includes:

  • Casual and part-time workers – even for a single shift. Hours worked do not matter; the working relationship does.
  • Fixed-term and seasonal contract workers – farm harvest teams, retail December staff, project-based crews.
  • Foreign nationals – including workers whose documentation is not in order. The fund compensates the person injured while working; immigration status is a separate legal issue and does not cancel COIDA cover.
  • Working directors paid a salary – a director drawing remuneration is an employee for ROE purposes and must be included in your payroll declaration.
  • Domestic workers – covered since the landmark Mahlangu judgment; see COIDA for domestic workers.

The one genuine exception is the true independent contractor – someone running their own business, with their own tools, clients and risk. Labels in a contract do not decide this; the actual working relationship does. If you control how and when the person works, the fund will almost certainly treat them as your employee. Read more in COIDA contractor liability.

Labour Brokers: Who Is the Employer?

When workers come through a labour broker (temporary employment service), the labour broker is the employer for COIDA purposes and must be registered, declare those earnings and carry the assessment. But client companies are not automatically safe: if the broker is unregistered or non-compliant, claims and liabilities have a way of landing on the client. Before using brokered labour, ask for the broker’s Letter of Good Standing and verify it online.

What This Means for Your Return of Earnings

Worker type Include earnings in ROE?
Full-time employees Yes
Casual / part-time / seasonal workers Yes
Foreign nationals (documented or not) Yes
Working directors drawing a salary Yes
Labour-broker workers on your site No – the broker declares them (check the broker’s LOGS)
True independent contractors No

Under-declaring payroll to save on the assessment is a false economy: it creates an incorrect industry record, a wrong tariff base (see industry classes and tariffs), and audit exposure under the expanded inspection powers in the 2026 COIDA amendments.

When a Casual or Foreign Worker Is Injured

The claim process is identical to any other employee: report within 7 days (the 7-day rule), medical reports, and the benefits set out in COIDA claims and benefits. “They were only here for a day” is not a defence – one shift is enough for cover to apply.

Not sure whether your mixed workforce is declared correctly? A compliance review with Admin Boss can reconcile your payroll records with your ROE before the Fund does it for you.

Frequently Asked Questions

Are casual workers covered by COIDA?

Yes. COIDA covers any person who works under a contract of service for remuneration, including casual, part-time and seasonal workers – even for a single shift. Their earnings must be included in the employer’s Return of Earnings.

Are foreign workers covered by COIDA in South Africa?

Yes. Foreign nationals working for a South African employer are covered by COIDA regardless of nationality, and the fund compensates workers injured on duty even where immigration documents are not in order. Immigration status is a separate legal matter.

Who is responsible for COIDA when workers come from a labour broker?

The labour broker (temporary employment service) is the employer for COIDA purposes and must register, declare the workers’ earnings and pay the assessment. Client companies should always request and verify the broker’s Letter of Good Standing.

Are independent contractors covered by my COIDA registration?

No. True independent contractors – people running their own business with their own tools and clients – are not your employees under COIDA. But the actual working relationship decides this, not the contract label; if you control how and when they work, they are likely employees.

Must working directors be included in the Return of Earnings?

Yes. A director who draws a salary from the company counts as an employee for COIDA purposes and their remuneration must be included in the ROE payroll declaration.

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Sources and Further Reading

Last reviewed: 14 August 2026 against the official sources listed above. This guide is general information for South African employers and employees, not legal advice. Figures such as minimum assessments and earnings ceilings are set by the Compensation Fund and change annually – always confirm the current amounts on the official portals before paying.

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