COIDA Letter of Good Standing: What It Is and How to Get One for Tenders

The COIDA Letter of Good Standing is one of the most commonly requested compliance documents on South African government tenders, and one of the most commonly missed. It's a small piece of paper that can disqualify an otherwise winning bid in seconds. Here's what it is, when you need it, and how to get it without losing a week to email queues.

What is COIDA?

The Compensation for Occupational Injuries and Diseases Act (COIDA), Act 130 of 1993, is the law that gives every employee in South Africa the right to be compensated for injuries, illnesses and deaths that happen at work. The Compensation Fund (administered by the Department of Employment and Labour) pays the claims, and every registered employer pays an annual assessment to the Fund based on their payroll and risk class.

What is the Letter of Good Standing?

The Letter of Good Standing (LoGS) is the Compensation Fund's certificate confirming three things at the date it was issued:

• You are registered with the Compensation Fund as an employer
• Your annual Return of Earnings (ROE) is up to date
• Your assessment fees have been paid (or you're on an approved payment arrangement)

The certificate has an issue date and an expiry date, typically valid for one calendar year (or 90 days for some categories). Any bid you submit must include a Letter of Good Standing that's still valid on the closing date of the tender.

When do you actually need one?

Practically every government and SOE tender that involves people on the buyer's premises requires a current LoGS. That includes:

• All construction and built-environment work
• Cleaning, security, gardening and facilities services
• Catering, hospitality and event services
• Transport, logistics and delivery contracts
• Maintenance, repair and installation work
• Any contract under the Construction Regulations

Pure professional services delivered remotely (consulting, legal opinions, software-as-a-service) sometimes don't require an LoGS, but many buyers ask for one anyway as a blanket compliance check. If you have any employees at all, get one.

The four-step process to get your LoGS

Step 1: Register with the Compensation Fund

If you've never registered, you need to submit a W.As.2 form. You'll need your CIPC company registration documents, ID copies of directors, your SARS PAYE registration number, and proof of payroll. Registration creates your CF reference number — the unique ID that follows you for the life of the business.

Step 2: Submit your annual Return of Earnings

Every March/April you must declare actual payroll for the previous financial year and projected payroll for the current year. Submit via the CF-Filing online portal (cfiling.labour.gov.za). The deadline is usually 31 May, and the system stays open until end of June with no penalty in most years. Late submission carries a 10% penalty plus interest, so set a calendar reminder for May 1.

Step 3: Pay your assessment

Once you submit the ROE, the Fund calculates your assessment based on your industry's risk class and the payroll you declared. You'll get an assessment notice with banking details. Pay by EFT — keep the proof of payment, you'll need it for queries.

Step 4: Request the Letter

After payment reflects, request the LoGS through the CF-Filing portal. In a healthy month, the certificate is issued within 3 to 5 working days. In peak season (May–July, when everyone is renewing) it can take 2 to 4 weeks. Plan around this.

Common reasons your LoGS application gets rejected

• Bank details on payment don't match registered details.The Fund is strict about traceability — pay from your registered business account, not a director's personal account.
• Outstanding ROEs from prior years. You can't get a current LoGS if any historical ROE is missing. New owners of dormant companies frequently get caught here.
• SARS de-registration. If your PAYE has been de-registered, the Fund's system flags this and rejects. Re-register PAYE first, then re-apply.
• Director ID issues. If a director's ID number on the CF register doesn't match Home Affairs (e.g. due to a name change), the certificate is held until corrected.

The compliance shortcut: keep one perpetually valid

Don't apply for an LoGS only when you have a tender to bid on. The 2 to 4 week turnaround in peak season has cost countless small businesses tenders that closed before their certificate arrived. Submit your ROE and pay the assessment in early May every year and you'll have a valid LoGS for the next 12 months without ever scrambling.

How TenderSearch SA helps

Every tender's "Requirements" section on the platform flags whether an LoGS is required so you know up front whether to bid. Combine with our deadline alerts and you'll never again realise on a Wednesday that you need an LoGS for a tender closing on Friday. The COIDA LoGS is one of several compliance documents covered in our complete guide to winning government tenders in South Africa.