What is a Letter of Good Standing and do I need one as a domestic employer?
Short answer
A Letter of Good Standing is a certificate from the Compensation Fund confirming you are registered for COIDA and your account — your Return of Earnings and assessment payments — is up to date. It is what proves an injured domestic worker would actually be covered. Most households only need it when asked (for example by an estate, a managing agent, or to prove compliance), but you can only get one if you have registered and filed your Return of Earnings, so it doubles as a check that your COIDA obligations are current.
What it actually certifies
A Letter of Good Standing (sometimes called a Compliance Certificate) is issued by the Compensation Fund and states that your employer account is registered, your Return of Earnings is filed, and your assessment is paid. In effect it confirms that if your worker is injured at work, the Fund — not you personally — carries the cost. It is the visible proof of the COIDA cover that the Mahlangu judgment made compulsory for every household employer.
When a domestic employer needs one
Unlike a building contractor, a household rarely needs to hand a Letter of Good Standing to anyone day-to-day. You're most likely to be asked for one by an estate or body corporate, a managing agent, or an insurer wanting proof that the person working on the property is covered. Some employers also request it simply to confirm for themselves that their COIDA account is genuinely in order, since the letter will not issue if anything is outstanding.
How to get it
You request the letter from the Compensation Fund, either online through CompEasy (the Fund's system) or at a labour centre. It only issues once you are registered as an employer, have submitted your Return of Earnings, and have paid the assessment due. If any of those is missing, the letter is withheld until you put it right — so getting the letter and getting compliant are the same task.
Good standing depends on the annual Return
A Letter of Good Standing reflects a moment in time and lapses if your account falls behind. The annual COIDA Return of Earnings keeps it current: you declare what you paid the worker for the year, the Fund assesses your contribution, and once paid your standing is restored. The Return is filed in an annual window — we don't print fixed dates here because they can shift year to year; check the Compensation Fund for the current window.
Frequently asked questions
What is a Letter of Good Standing?
A certificate from the Compensation Fund confirming you are a registered COIDA employer whose Return of Earnings is filed and assessment paid — proof that your domestic worker is covered for work injuries.
Does a household employer really need one?
Only when asked — typically by an estate, managing agent or insurer. But you can only obtain it once your COIDA registration and Return of Earnings are up to date, so it's also a useful compliance check.
How do I get a Letter of Good Standing?
Request it from the Compensation Fund via CompEasy or a labour centre. It issues only once you're registered, your Return of Earnings is filed, and your assessment is paid.
Why won't my Letter of Good Standing issue?
Usually because your Return of Earnings is outstanding or your assessment isn't paid. The letter is withheld until your COIDA account is current — file the Return and settle the assessment, then request it again.
Dignita is a compliance tool, not legal advice. Figures are based on current South African legislation; confirm with a labour-law professional for your situation.