A COIDA Letter of Good Standing is one of the most-requested compliance documents in South Africa — you need it to tender, to get onto most sites, and as part of any construction safety file. Yet getting and keeping one trips up a lot of employers.
Here is what the Letter of Good Standing is, why it matters, and how to get and renew it.
What is a Letter of Good Standing?
The Compensation for Occupational Injuries and Diseases Act 130 of 1993 (COIDA) requires almost every employer to register with the Compensation Fund and pay annual assessments. In return, employees are covered for work-related injuries and diseases.
A Letter of Good Standing (LoGS) is the Compensation Fund's confirmation that your account is registered and up to date. It is proof that your workers are covered and that you have met your COIDA obligations.
Why you need one
- To tender for work — most tenders require a valid Letter of Good Standing.
- To get onto a site — principal contractors and clients require it before you start.
- For your safety file — it is a standard item in a construction health and safety file.
- To make sure your employees are actually covered if a work-related injury or disease occurs.
How to get a Letter of Good Standing
- Register as an employer with the Compensation Fund (if you have not already).
- Submit your Return of Earnings (the W.As.8 / ROE), declaring your employees' earnings for the assessment period.
- Pay the assessment the Fund raises based on your Return of Earnings.
- Request the Letter of Good Standing — once your ROE is submitted and your account is paid up, the Fund issues it (now usually through its online portal).
Validity and common problems
A Letter of Good Standing is valid for a limited period and must be renewed — commonly tied to your annual Return of Earnings cycle. Track the expiry date so it never lapses while you are on site or mid-tender.
- An outstanding or late Return of Earnings will block your letter.
- Unpaid or partially paid assessments will block it.
- Registration details that do not match your company records cause delays.
Keep every compliance document in one place
Your Letter of Good Standing is one item in a complete safety file. Get the free checklist so nothing expires or goes missing before an inspection.
Get the free safety file checklistFrequently asked questions
Is a Letter of Good Standing compulsory?
Registering with the Compensation Fund and paying assessments is compulsory for almost all employers under COIDA. The Letter of Good Standing is the proof of that compliance, and is required to tender and to work on most sites.
How long is a Letter of Good Standing valid?
It is valid for a limited period and must be renewed — usually linked to your annual Return of Earnings submission. Always check the expiry date on your letter.
What is the difference between COIDA registration and a Letter of Good Standing?
Registration sets up your Compensation Fund account; the Letter of Good Standing is the periodic confirmation that the account is active and paid up.
Sources and legal references
Primary sources used for this guide. Check the linked official publication for the current legal text and any amendments.
- Compensation for Occupational Injuries and Diseases Act 130 of 1993 — South African Government
- Occupational Health and Safety Act 85 of 1993 — South African Government
- Occupational Health and Safety Act: Construction Regulations, 2014 — South African Government
Written by Danielle Uys, SHEQ & Health and Safety Specialist.
This guide is general information for South African workplaces, not legal advice. Always check the latest version of the relevant Act and regulations, and confirm requirements for your specific site and industry.