“Please send your COID letter of good standing.” If you are a contractor or supplier in South Africa, you’ll hear this before almost every new job. Without a valid letter, many clients and principal contractors simply won’t let you on site. Here’s what the letter is, how to get it and how to keep it valid.
What is a COID letter of good standing?
The Compensation for Occupational Injuries and Diseases Act (COIDA) requires employers to register with the Compensation Fund, run by the Department of Employment and Labour, and pay an annual assessment. The Fund then covers employees who are injured or become ill because of their work.
A letter of good standing (often shortened to LOGS) is the Fund’s confirmation that your business is registered, has submitted its annual Return of Earnings and has paid what it owes. It shows a client that your workers are covered if something goes wrong on their site.
Who needs one?
- Any business with employees must register with the Compensation Fund. That includes small businesses, and domestic employers too.
- Contractors and service providers are almost always asked for the letter by clients, landlords, body corporates and government departments.
- On construction projects it’s a legal check: under the Construction Regulations 2014, a principal contractor must make sure every contractor is registered and in good standing with the Compensation Fund, or covered by a licensed compensation insurer, before work starts.
How to get your letter of good standing
- Register with the Compensation Fund if you haven’t already. Registration is done online through the Department of Employment and Labour’s systems, using your company and employee details. You’ll receive a COID registration number.
- Submit your Return of Earnings (ROE) each year. This declares what you paid your employees during the assessment year. The submission window is announced by the Fund every year (in 2026 it ran until 30 June).
- Pay your assessment in full, using the correct reference number and only into the Compensation Fund’s official bank account.
- Download the letter from the Fund’s online system once your ROE is accepted and payment has reflected.
- Keep a copy in your safety file and send it to clients as a PDF.
Watch out for letter-of-good-standing scams
The Compensation Fund has warned employers about scammers posing as Fund officials or “agents” who sell letters of good standing, or supply forged letters that don’t exist on the Fund’s system. Protect yourself:
- Only apply through the Department of Employment and Labour’s official online systems.
- Only pay assessments into the Fund’s verified bank account, never into a personal or third-party account.
- Verify letters you receive from your own contractors using the certificate number on the Department’s online verification tool.
- Be wary of anyone who promises a letter even though returns haven’t been submitted or debts haven’t been paid.
What if a worker is injured?
Being in good standing is only half of it. When an employee is injured on duty, the employer must report it to the Compensation Fund within the required time, keep records and help the employee with the claim. Serious incidents may also need to be reported to the Department under Section 24 of the OHS Act. A written COID reporting procedure and an injury claim checklist in your safety file make sure the right steps are followed, even when you aren’t there.
Be ready for the next client who asks. Our Contractor Safety Files include a COID reporting procedure, a COID injury claim checklist, appointment letters and everything else clients ask for. Made for plumbers, electricians, garden services, painters, cleaners and more.
Frequently asked questions
How long is a COID letter of good standing valid?
Letters are valid for a limited period set by the Compensation Fund, usually until the next annual Return of Earnings cycle. In 2026 all existing letters expired on 30 April. Check the expiry date printed on your letter.
Why can’t I get a letter of good standing?
The most common reasons are an outstanding Return of Earnings for any year, an unpaid or partly paid assessment, or registration details that don’t match. Fix the outstanding item first, and the letter can then be generated.
Can a sole proprietor with no employees get a letter?
COIDA covers employees, so a business with no employees may not be required to register. Some clients still ask for proof, so speak to the Compensation Fund about your situation and keep their written response in your file.
Is a FEM certificate the same as a COID letter?
For businesses insured with a licensed compensation insurer, such as FEM in the building industry, the insurer’s certificate of good standing serves the same purpose. The Construction Regulations accept either.
How do I check if a contractor’s letter is real?
Use the verification tool on the Department of Employment and Labour’s website with the certificate number on the letter. Never accept a letter you can’t verify.
