A VICTORY with regards to the WITHDRAWAL OF THE RULES TO THE COIDA AMENDMENT BILL

A VICTORY

with regards to the

WITHDRAWAL OF THE RULES TO THE COIDA AMENDMENT BILL

by Rona Bekker

Dear employer

After the publication of the controversial and contradictory rules to the Compensation for Injury on Duty Act (COIDA) Amendment Bill, on 10 September 2021, NEASA acted immediately to challenge the implementation of these rules. An open letter was directed at the Compensation Fund Commissioner and the Minister of Employment and Labour, voicing NEASA’s vehement opposition to these rules.

If implemented, the rules would have:

• directly side-lined a decision by Parliament to remove a detrimental section from the Amendment Bill;
• prohibited the cession of claims by Medical Service Providers (MSPs) and Healthcare Organisations to third-party administrators and/or financial institutions; and
• afforded MSPs a mere two weeks to register and verify bank accounts with the Fund; a process, which in common knowledge, takes at least two months.

In addition to the direct open letter, a further press release was sent in order to create mass awareness among the industry and strengthen the fight against the implementation of these rules.

In said letter, NEASA highlighted, firstly, the contradictory nature of the rules in light of the COID Act itself, and secondly, the destruction these rules could cause to an entire industry and value-chain. If the cession-function of claims is removed, MSPs will be out of pocket, without the third-party administrators’ cession-safety net. This will lead to MSPs refusing to treat injured workers, for fear of not successfully claiming from the Fund. Simply put, these rules will negatively impact the out-of-pocket MSPs and Healthcare Organisations, will be to the detriment of the employers paying to ensure the treatment of their injured workers, and will destroy the market share of third-party administrators and financial institutions. The only role player to benefit from these rules, is the corrupt, rotting and dysfunctional Compensation Fund.

In response to the uproar from NEASA in conjunction with other role players, NEASA has received news that the Office of the State Attorney has sent a letter indicating that the rules will be withdrawn, and that the notice dictating this will be gazetted within 30 days.

This victory goes to prove the power of employers and industry role players who stand together against back-door, destructive and mala fide policies, rules and legislation of corrupt and scheming government institutions and departments.

NEASA will never remain silent on any matters or harmful policies and rules which negatively impact employers.

We will keep employers abreast of any developments in this regard.

Rona Bekker is a Senior Policy Advisor at the National Employers’ Association of South Africa (NEASA).

For more information:
NEASA Media Department
media@neasa.co.za