Quick Answer: Letter of Good Standing Requirements
To obtain a Letter of Good Standing (LOGS) in South Africa, your business must be fully registered with the Compensation Fund under the Compensation for Occupational Injuries and Diseases Act (COIDA), have all annual Return of Earnings (ROE) declarations up to date, be fully assessed by the Compensation Commissioner, and have no outstanding assessment fees or debts owed to the Fund.
If your business cannot pay the full assessment invoice upfront, an approved payment arrangement (typically requiring a minimum 20% deposit) must be active and compliant. Once all conditions are met, the Department of Employment and Labour issues a digital certificate confirming that your workers are covered for workplace injuries and occupational diseases.
This guide helps South African entrepreneurs, business owners, and administrative teams confirm eligibility, gather required documentation, and navigate the application process. For wider operational standards, review our overarching guide on Business Requirements South Africa.
Who This Requirement Applies To
A Letter of Good Standing is required for any employer operating in South Africa that employs one or more workers, whether full-time, part-time, or contract staff. Under COIDA legislation, registering with the Compensation Fund and maintaining compliance is a legal obligation for all eligible employers.
The requirement specifically applies to:
- Commercial Employers & Companies: Private companies (Pty Ltd), close corporations (CCs), sole proprietors, partnerships, and trusts that employ staff in South Africa.
- Contractors & Subcontractors: Businesses bidding on private or public sector tenders, corporate vendor lists, or municipal contracts where workplace safety verification is mandatory.
- High-Risk Industry Operators: Construction, logistics, manufacturing, mining, and agricultural entities where clients require proof of COIDA coverage before allowing site access.
- Emerging Businesses Seeking Tender Letters: Aspiring employers with no current staff who need official confirmation for specific tender submissions.
To explore how this fits into broader statutory requirements, explore COIDA And Good Standing Requirements South Africa.
Eligibility Requirements
Meeting the Letter of Good Standing Requirements eligibility criteria depends on fulfilling four core compliance pillars established by the Department of Employment and Labour. The Compensation Commissioner will not issue a certificate if any single pillar is incomplete.
| Eligibility Pillar | Statutory Requirement | Verification Check |
| 1. Employer Registration | Registered as an active employer with the Compensation Fund under Section 80 of COIDA. | Active 99… or 04… Compensation Fund reference number. |
| 2. Return of Earnings (ROE) | All annual ROE filings submitted up to the current assessment year under Section 82. | Declared actual and provisional payroll recorded on CompEasy / ROE portal. |
| 3. Account Assessment | Fully assessed by the Fund under Section 83, resulting in an official Notice of Assessment. | W.As.28 invoice generated for the relevant assessment period. |
| 4. Account Settlement | All assessed fees, interest, and penalties paid in full or covered under an active instalment plan. | Payment allocated and reflected as zero or compliant balance on the portal. |
Specific Eligibility Conditions
- Active Employer Status: The business must have completed initial registration. If you have not registered your business yet, refer to COIDA Registration Requirements and Compensation Fund Registration Requirements.
- Instalment Arrangements: Employers unable to settle their annual assessment invoice in a single payment may enter an official instalment plan. This requires a 20% upfront deposit and monthly debit orders over a maximum of 12 months. Under an instalment plan, Letters of Good Standing are issued on a month-to-month basis.
- Emerging Employers without Staff: Businesses with zero employees that require compliance proof for a specific tender can apply for a special Tender Letter. These are issued per specific tender and require proof of the tender invitation documentation.
Documents You May Need
Before logging into the Department of Employment and Labour online portal (CompEasy / ROE System) or engaging an accredited compliance agent, prepare your Letter of Good Standing Requirements documents checklist.
Having these verified records on hand ensures rapid processing and prevents system clearance delays.
Mandatory Document Checklist
- COIDA Reference Number / Registration Certificate: Official Compensation Fund reference number issued upon employer registration.
- CIPC Registration Documents: Official Certificate of Incorporation (COR14.3, CK1/CK2 documents) reflecting registered business name, enterprise number, and current status.
- Identity Documents: Certified copies of Identity Documents (IDs) or passport documents for all active company directors, members, or sole proprietors.
- SARS Tax Verification: Valid SARS Income Tax registration number and Tax Clearance Pin.
- Notice of Assessment (W.As.28 Invoice): The latest assessment invoice issued by the Compensation Commissioner following your ROE submission.
- Proof of Payment: Electronic Funds Transfer (EFT) bank confirmation showing payment made directly to the Compensation Fund bank account, featuring the correct COIDA reference number.
- Approved Payment Arrangement Agreement: Official confirmation from the Fund if operating under a 20% deposit instalment agreement.
For a comprehensive guide on initial registration paperwork, consult Documents Needed for COIDA Registration.
Steps to Apply or Prepare
To secure your certificate efficiently, follow these standard Letter of Good Standing Requirements application steps:
[1. Verify Registration] ──> [2. Submit Annual ROE] ──> [3. Receive Notice of Assessment] ──> [4. Settle Fees or Instalment] ──> [5. Generate & Download Letter]
Step 1: Verify Active COIDA Registration
Ensure your company is registered with the Department of Employment and Labour Compensation Fund. Locate your unique employer reference number.
Step 2: Submit Annual Return of Earnings (ROE)
Log into the official online portal (CompEasy / ROE online system) during the annual filing window (typically 1 April to 30 June). Declare your actual payroll expenses for the past year and provisional payroll estimates for the upcoming year.
Step 3: Receive and Review Notice of Assessment
Once the ROE submission is captured, the portal calculates your assessment fee based on total payroll and your industry risk class rating. The portal then generates a Notice of Assessment (W.As.28 invoice).
Step 4: Pay Assessment Fees or Settle Debt
Pay the full invoice amount directly into the Compensation Fund’s dedicated bank account within 30 days of assessment. Alternatively, submit an online application for an instalment plan, pay the required 20% deposit, and obtain approval.
Step 5: Download the Letter of Good Standing
Once your payment reflects and is fully allocated on the CompEasy system, navigate to the “Letter of Good Standing” tab on the portal. Generate and download your official PDF certificate immediately.
Costs, Processing Times and Validity
Understanding fees, turnaround times, and validity periods helps avoid missed tender deadlines or operational disruptions.
Cost Breakdown
- Statutory Portal Fee: R0. The Department of Employment and Labour does not charge a direct administrative fee to generate or issue a Letter of Good Standing via CompEasy.
- Assessment Premiums: Employers must pay their annual COIDA assessment fee, calculated as a percentage of total employee earnings based on industry risk categories.
- Third-Party Service Fees: If you hire a business compliance consultant to manage submissions, administrative service fees typically range from R500 to R1,500 depending on account complexity.
Processing Times
- Online Automated Generation: Instantaneous to 24 hours once payment is fully cleared and allocated on the system.
- Manual Review / Query Resolution: 2 to 5 working days if manual payment allocation, account unlinking, or prior year assessments require departmental intervention.
Validity Period
- Standard Annual Expiry: All standard Letters of Good Standing expire annually on 30 April, regardless of when during the year they were issued. A new certificate must be generated following the annual April ROE filing season.
- Instalment Validity: Letters issued under an approved instalment payment agreement are valid on a month-to-month basis and remain contingent on punctual monthly payments.
Common Mistakes and Delays
Delays in receiving a Letter of Good Standing usually stem from administrative oversight rather than system errors. Avoid these common pitfalls:
- Incorrect Payment Reference: Paying the assessment fee without quoting the correct COIDA reference number causes funds to sit in unallocated accounts, delaying system clearance.
- Outstanding Past-Year ROE Filings: Missing a Return of Earnings submission for a prior financial year blocks automated certificate generation.
- Unreported Workplace Incidents: Failing to log outstanding occupational injury or disease claims can lead to account holds.
- Mismatched Company Details: Mismatches between CIPC company names, SARS tax numbers, and CompEasy profile details cause validation flags.
- Last-Minute Tender Applications: Waiting until a tender closing date to apply leaves zero buffer time for manual payment allocations or query resolution.
Where to Confirm Official Requirements
Because statutory regulations, assessment tariff rates, and digital portal processes change periodically, always verify requirements through official channels:
- Department of Employment and Labour: Official portal at labour.gov.za.
- CompEasy / ROE Online System: Direct portal access for employer account management, ROE filings, and document downloads.
- Licensed Mutual Assurance Entities: For employers in the mining sector (Rand Mutual Assurance – RMA) or construction sector (Federated Employers Mutual Assurance – FEM), verify requirements on their respective official portals.
Disclaimer: Requirements.co.za provides independent educational compliance guidance. We are not affiliated with the Department of Employment and Labour or the Compensation Commissioner. Always confirm active filings directly on official government portals.
Frequently Asked Questions
What are the requirements for Letter of Good Standing Requirements?
The primary requirements are active employer registration with the Compensation Fund, up-to-date annual Return of Earnings (ROE) submissions, a completed Notice of Assessment, and full payment of all assessment fees or an active, approved instalment plan.
What documents are needed for Letter of Good Standing Requirements?
You need your COIDA reference number, CIPC company registration documents, certified director ID copies, SARS Tax Pin, latest Notice of Assessment (W.As.28 invoice), and bank proof of payment or payment agreement proof.
How long does it take for Letter of Good Standing Requirements?
If your ROE is submitted and payment is allocated on the online CompEasy system, generating the certificate is immediate. If manual intervention or payment matching is required, processing usually takes 2 to 5 working days.
Where can I confirm the latest official requirements for Letter of Good Standing Requirements?
Official requirements can be confirmed directly on the Department of Employment and Labour website (labour.gov.za) or through the official CompEasy / ROE online portal.
Which documents should I prepare for Letter of Good Standing Requirements?
Prepare your company CIPC papers, director ID copies, SARS tax clearance, COIDA registration details, proof of payment, and the latest W.As.28 assessment invoice before logging into the portal.