Chapter IV: Compensation for occupational injuries


22. Right of employee to compensation

1) If an employee meets with an accident resulting in his disablement or death such employee or the dependants of such employee shall, subject to the provisions of this Act, be entitled to the benefits provided for and prescribed in this Act.

2) No periodical payments shall be made in respect of temporary total disablement or temporary partial disablement which lasts for three days or less.

3)

  1. If an accident is attributable to the serious and, willful misconduct of the employee, no compensation shall be payable in terms of this Act, unless--

    1. the accident results in serious disablement; or
    2. the employee dies in consequence thereof leaving a; dependant wholly financially dependent upon him.

  2. Notwithstanding paragraph (a) the Director-General may, and the employer individually liable or mutual association concerned, as the case may be, shall, if ordered thereto by the Director-General, pay the cost of medical aid or such portion thereof as the Director-General may determine.

4) For the purposes of this Act an accident shall be deemed to have arisen out of and in the course of the employment of an employee notwithstanding that the employee was at the time of the accident acting contrary to any law applicable to his employment or to any order by or on behalf of his employer, or that he was acting without any order of his employer, if the employee was, in the opinion of the Director-General, so acting for the purposes of or in the interests of or in connection with the business of his employer.

5) For the purposes of this Ad the conveyance of an employee free of charge to or from his place of employment for the purposes of his employment by means of a vehicle driven by the employer himself or one of his employees and specially provided by his employer for the purpose of such conveyance, shall be deemed to take place m the course of such employee's employment.

23. Accidents outside Republic

1)

  1. If an employer carries on business chiefly in the Republic and an employee of his ordinarily employed in the Republic, meets with an accident while temporarily employed outside the Republic, such employee shall, subject to paragraph (c), be entitled to compensation as if the accident had happened in the Republic.
  2. The amount of compensation contemplated in paragraph (a) shall be determined on the basis of the earnings which the employee, in the opinion of the Director-General, would have received if he had remained in the Republic.
  3. This subsection shall cease to apply to an employee after he has been employed outside the Republic for a continuous period of 12 months, save by agreement between the Director-General, the employee and the employer concerned, and subject to such conditions as the Director-General may determine.

2) If an employee resident in the Republic meets with an accident while employed in, on or above the continental shelf, such employee shall be entitled to compensation as if the accident had happened in the Republic.

3)

  1. If an employer carries on business chiefly outside the Republic and an employee of his ordinarily employed outside the Republic, meets with an accident while temporarily employed in the Republic, such employee shall not be entitled to compensation unless the employer has previously agreed with the Director-General that such employee shall be entitled to compensation and, where applicable, has paid the necessary assessments in respect of him.
  2. An employee referred to in paragraph (a) who is so temporarily employed in the Republic for a continuous period of more than 12 months, shall be deemed to be ordinarily employed by such employer in the Republic.

4) If, in terms of the law of the state in which an accident happens, an employee, in the circumstances referred to in subsection (1), is entitled to compensation or if an employee meets with an accident in the circumstances referred to in subsection (2) or in the Republic and he would be entitled to compensation in terms of the law of any other state as well as in terms of this Act, he shall by written notice to the Director-General elect to claim compensation either in terms of this Act or in terms of the law of the other state.

24. Application of Act to seamen and airmen

This Act shall apply to a seaman or airman--

  1. while employed on a South African ship or aircraft;
  2. while, subject to section 23(3), employed in the Republic on any other ship or aircraft.

25. Accidents during training for or performance of emergency services

If an employee meets with an accident--

  1. while he is, with the consent of his employer, being trained in organized first aid, ambulance or rescue work, fire-fighting or any other emergency service;
  2. while he is engaged in or about his employer's mine, works or premises in organized first aid, ambulance or rescue work, fire-fighting or any other emergency service;
  3. while he is, with the consent of his employer, engaged in any organized first aid, ambulance or rescue work, fire-fighting or other emergency service on any mine, works or premises other than his employer's, such accident shall, for the purposes of this Act, be deemed to have arisen out of and in the course of his employment.

26. Special circumstances in which Director-General may refuse award

If a right to compensation in terms of this Act arises owing to the death or disablement of an employee as a result of an accident, the Director-General may refuse to award the whole or a portion of such compensation and the Director-General, or, if authorized thereto by the Director-General, the employer individually liable or mutual association concerned, as the case may be, may also refuse to pay the whole or any portion of the cost of medical aid--

  1. if the employee at any time represented to the employer or the Director-General, knowing the information to be false, that he was not then suffering from or had not previously suffered from a serious injury or occupational disease or any other serious disease, and such an accident was caused by, or the death resulted from or the disablement resulted from or was aggravated by, such injury or disease; or
  2. if, in the opinion of the Director-General, the death was caused, or the disablement was caused, prolonged or aggravated, by the unreasonable refusal or willful neglect of the employee to submit to medical aid in respect of any injury or disease, whether caused by the accident or existing before the accident.

27. Special circumstances in which Director-General may make award

If in a claim for compensation in terms of this Act it appears to the Director-General that the contract of service or apprenticeship or learnership of the employee concerned is invalid, he may deal with such claim as if the contract was valid at the time of the accident.

28. Employee requiring constant help

If the injury in respect of which compensation is payable causes disablement of such a nature that the employee is unable to perform the essential actions of life without the constant help of another person, the Director-General may in addition to any other benefits in terms of this Act grant an allowance towards the cost of such help.

29 Liability for payment of compensation

If an employee is entitled to compensation in terms of this Act, the Director-General or the employer individually Liable or the mutual association concerned, as the case may be, shall be Liable for the payment of such compensation.

30 Mutual associations

1) The Minister may, for such period and subject to such conditions as he may determine. issue a licence to carry on the business of insurance of employers against their liabilities to employees in terms of this Act to a mutual association which was licensed on the date of commencement of this Act in terms of section 95(1) of the Workmen's Compensation Act: Provided that the Minister may, from time to time, order that, in addition to any securities deposited in terms of the Insurance Act, 1943 (Act No. 27 of 1943), and the Workmen's Compensation Act, securities considered by the Director-General to be sufficient to cover the liabilities of the mutual association in terms of this Act be deposited with the Director-General or his or her nominee.

2) Subject to the provisions of subsection (4), a security so deposited shall be used solely for making good the default of the association concerned in respect of any Liability of an employer in terms of this Act, and for payment of any expenses lawfully incurred in connection with such making good or the enforcement of such liability.

3) The Minister may from time to time determine the conditions upon which, the manner in which and the period within which any such security shall be made available to a person entitled to payment therefrom.

4) If the Minister is satisfied that the whole or any portion of such security is no longer necessary and that the association concerned is not in a position to incur a Liability payable therefrom, he shall cause such security, or portion thereof, to be returned to such association.

5) If an association has deposited with the Director-General or his or her nominee any such security and thereafter fails to meet in full any of its liabilities in terms of this Act, or is placed in liquidation, then, notwithstanding the provisions of any other law, such security shall vest in the Director-General for the purpose of the liabilities of the association in terms of this Act.

6) If at any time the Minister is satisfied that a mutual association has failed to comply with any of the conditions imposed by him or her under subsection (1), he or she may suspend or withdraw the licence issued to that association under the said subsection.

31. Security for payment of compensation and cost of medical aid by employers individually liable

1) The Director-General may order an employer individually liable to deposit such securities as in the opinion of the Director-General are sufficient to cover the liabilities of the employer in terms of this Act.

2) If an employer has deposited with the Director-General any such security and thereafter fails to meet in full his liabilities in terms of this Act, the Director-General may apply such security to pay those liabilities, and he may deposit any unused balance in the compensation fund and apply it for the payment of future liabilities of that employer in terms of this Act.

32. Compensation may not be alienated or reduced

1) Notwithstanding anything to the contrary in any other law contained, compensation shall not--

  1. be ceded or pledged;
  2. be capable of attachment or any form of execution under a judgment or order of a court of law;
  3. [Para. (c) deleted by section 12 of Act No. 61 of 1997];
  4. be set off against any debt of the person entitled to the compensation.

2) Notwithstanding subsection (1), the Director-General or the mutual association concerned, as the case may be, may pay compensation payable to an employee in whole or in part to the employer to the extent to which such employer has made payments to the employee in respect of disablement arising out of an occupational injury or disease.

33. Cession or relinquishment of benefits void

Any provision of an agreement existing at the commencement of this Act or concluded thereafter in terms of which an employee cedes or purports to cede or relinquishes or purports to relinquish any right to benefits in terms of this Act, shall be void.

34. Compensation not to term part of deceased employee's estate

Compensation in terms of this Act owing to the death of an employee shall not form part of his estate.

35. Substitution of compensation for other legal remedies

1) No action shall lie by an employee or any dependant of an employee for recovery of damages in respect of any occupational injury or disease resulting in the disablement or death of such employee against such employee's employer, and no liability for compensation on the part of such employer shall arise save under the provisions of this Act in respect of such disablement or death.

2) For the purposes of subsection (1) a person referred to in section 56(1)(b), (c), (d) and (e) shall be deemed to be an employer.

36. Recovery of damages and compensation paid from third parties

1) If an occupational injury or disease in respect of which compensation is payable, was caused in circumstances resulting in some person other than the employer of the employee concerned (in this section referred to as the 'third party') being liable for damages in respect of such injury or disease--

  1. the employee may claim compensation in terms of this Act and may also institute action for damages in a court of law against the third party; and the Director-General or the employer by whom compensation is payable may institute action in a court of law against the third party for the recovery of compensation that he is obliged to pay in terms of this Act.

2) In awarding damages in an action referred to in subsection (1)(a) the court shall have regard to the compensation paid in terms of this Act.

3) In an action referred to in subsection (1)(b) the amount recoverable shall not exceed the amount of damages, if any, which in the opinion of the court would have been awarded to the employee but for this Act.

4) For the purposes of this section compensation includes the cost of medical aid already incurred and any amount paid or payable in terms of section 28, 54(2) or 72(2) and, in the case of a pension, the capitalized value as determined by the Director-General of the pension, irrespective of whether a lump sum is at any time paid in lieu of the whole or a portion of such pension in terms of section 52 or 60, and periodical payments or allowances, as the case may be.

37. Threats and compulsion

Any person who threatens an employee or in any manner compels or influences an employee to do something resulting in or directed at the deprivation of that employee's right to benefits in terms of this Act, shall be guilty of an offence.