Chapter II: Administration of Act
2. Staff to assist Director-General
1) The Minister shall, subject to such conditions as he or she may determine, in order to assist the Director-General in the performance of his or her functions in terms of or under this Act and subject to the laws governing the public service, appoint--
- an officer to be called the Compensation Commissioner; and
- such other officers and employees as the Minister or an officer designated by him or her may deem necessary.
2) The Director-General, and the officers and employees referred to in subsection (1)(b), shall be remunerated out of the National Reserve Fund, which shall be reimbursed out of the compensation fund for the expenditure concerned.
3. Delegation of powers and assignment of duties by Director-General
1) The Director-General may, subject to such conditions as he or she may determine, delegate any of his or her powers or assign any of his or her duties to the Director-General, or an officer or employee referred to in section 2(1)(b), and may at any time cancel any such delegation or assignment.
2) A delegation or assignment under subsection (1)--
- shall not divest the Director-General of the power delegated or duty assigned, and he or she may at any time amend or set aside any decision made thereunder; and
- shall not prevent the exercise of the power or the performance of the duty concerned by the Director-General himself or herself.
4. Functions of Director-General
1) Subject to the provisions of this Act, the Director-General shall--
- [Para. (a) deleted by section 4 of Act No. 61 of 1997];
- inquire into accidents and occupational diseases;
- adjudicate on claims and other matters coming before him for decision;
- issue an order for the payment of compensation in respect of an award made by him;
- decide whether a person is an employee, an employer, a mandator or a contractor for the purposes of this Act;
- decide any question relating to--
- a right to compensation;
- the submission, consideration and adjudication of claims for compensation;
- the calculation of earnings;
- the degree of disablement of any employee;
- the amount and manner of payment of compensation;
- the award, withholding, review, discontinuance, suspension, increase or reduction of compensation;
- the Liability for payment of compensation as contemplated in section 29;
- decide whether a person is a dependant of an employee and, if so, the percentage of dependence, and, in the case where there is more than one dependant, which shall receive compensation and the allocation of compensation among them;
- consider and adjudicate upon claims in terms of section 62;
- decide upon--
- the need for, and the nature and sufficiency of medical aid;
- the reasonableness of the cost of medical aid, and the amount and manner of payment of such cost;
- decide upon the Liability for assessment, tariffs of assessment, the amounts of assessments, the manner of payment of assessments and related matters;
- decide upon any other question falling within his functions in connection with the administration of this Act;
- administer the compensation fund and the reserve;
- fund; recover amounts due to the compensation fund, including amounts which should not have been paid out in terms of this Act, or write off such amounts if, in his opinion, they cannot be recovered;
- after the conclusion of each financial Year submit a report to the Minister regarding the administration of this Act during that year;
- record statistics and information regarding the occurrence and causes of accidents and occupational diseases, and the award of benefits in terms of this Act;
- institute such inquiries and perform such other functions as may be prescribed, or as he may deem necessary for the administration of this Act.
2) The Director-General may--
- for the administration of this Act enter into an agreement with any person for the performance of a particular task or of particular work or for the rendering of particular services on such conditions and for such remuneration as may be agreed upon;
- found. establish or subsidize, or assist with the founding, establishment or subsidizing of, a body, organization or scheme whose objects include one or more of the following:
- The prevention of accidents or of any disease which is due to the nature of a particular activity;
- the promotion of the health or safety of employees;
- the provision of facilities designed to assist injured employees and employees suffering from occupational diseases to return to their work or to reduce or remove any disability resulting from their injuries or diseases;
- the carrying out of any activity which will contribute to the attainment of any of the referred to in subparagraphs (i), (ii); and
- purchase or otherwise acquire shares in any body, organization or scheme referred to in paragraph (b), and alienate any shares so acquired;
- apply unclaimed compensation for the general welfare of injured employees or employees suffering from occupational diseases;
- [Para. (e) deleted by section 4 of Act No. 61 of 1997].
5. Power of Director-General to acquire and alienate Immovable property and to raise money
1) The Director-General may With the approval of the Minister--
- raise money by way of loans;
- purchase or otherwise acquire immovable property, and alienate such property.
2) Immovable property acquired under subsection (1) shall be held in the name of the Director-General in trust for the compensation fund.
6. Powers of Director-General regarding witnesses and subpoenas
1)
- The Director-General may subpoena any person who in his opinion is able to give information concerning the subject of any injury in terms of this Act, or who is suspected to have or m the opinion of the Director-General has in his possession or custody or under his control any book, document or thing which has a bearing on the inquiry, to appear before him at a time and place specified in the subpoena, to be interrogated or to produce such book, document or thing, and the Director-General may retain such book, document or thing for further investigation.
- An inquiry referred to in paragraph (a) shall take place m public unless the Director-General orders otherwise.
2) The Director-General may call and administer an oath to, or accept an affirmation from, any person present at such an inquiry who was or could have been subpoenaed in terms of subsection (1), and the Director-General or an assessor may interrogate such person and order him to produce any book, document or thing in his possession or custody or under his control.
3) A person who--
- has been duly subpoenaed under subsection (1) and who fails without sufficient cause to attend at the time and place specified in the subpoena;
- has been duly subpoenaed under subsection (1) or called under subsection (2) and who--
- fails to remain in attendance until excused by the Director-General from further attendance;
- refuses to be sworn as a witness or to make an affirmation;
- refuses or fails to answer fully and satisfactorily any question lawfully put to him under subsection 2;
- refuses or fails to produce any book, document or thing in his possession or custody or under his control which he has been required to produce under subsection (1) or (2);
- hinders or obstructs the Director-General in the performance of any of his functions in terms of this section, shall be guilty of an offence.
4) A person who, after having been sworn as a witness or having made an affirmation, makes a false statement knowing it to be false, shall be guilty of an offence and shall upon conviction be liable to the penalty that may be imposed for perjury.
5) The law relating to privilege as applicable to a witness testifying in a court of law shall be applicable at an inquiry referred to in subsection (1).
6) If a person has been subpoenaed to appear before the Director-General and the Director-General is satisfied that such person has as a result of his appearance suffered any pecuniary loss or had to incur expense, the Director-General may pay out of the compensation fund the prescribed allowances or the amount of the loss or expense, whichever is the lesser.
7) The Director-General may delegate any of his functions under this section to an assessor, an officer or employee referred to in section 1 of the Public Service Act, 1984 (Act 111 of 1984), or a medical practitioner, and in this section 'Director-General' includes any such assessor, officer, employee or medical practitioner while acting within the scope of such delegation.
6A. Functions of commissioner
The commissioner shall--
- receive notices of accidents and occupational diseases, claims for compensation, medical reports and accounts, objections, applications, returns of earnings and payments due to the compensation fund;
- by notice in the Gazette prescribe the rules referred to in section 56(3)(c), as well as the forms to be used and the particulars to be furnished in connection with notice of occupational injuries and diseases, claims for compensation or any other form or matter which he or she may deem necessary for the administration of this Act.
7. Powers of authorised person
1) The Director-General may authorize any assessor, any officer or employee referred to in section 1 of the Public Service Act, 1984 (Act 111 of 1984), or any medical practitioner to investigate any matter that he may deem necessary for the performance of his functions.
2) A person authorized under subsection (1) (in this section referred to as an 'authorized person') shall be furnished with a certificate to that effect signed by the Director-General.
3) An authorized person may--
- without previous notice, at all reasonable times enter any premises, and take an interpreter or other assistant or a police officer with him onto the premises;
- while he is on the premises, or at any time thereafter, question any person who is or was on the premises, either alone or in the presence of any other person on any matter to which this Act relates;
- order any person who has control over or custody of any book, document or thing on or in those premises to produce to him forthwith, or at such time and place as may be determined by him, such book, document or thing;
- at any time and place order any person who has the possession or custody of or is in the control of a book, document or thing relating to the business of an employer or previous employer, to produce forthwith or at such time and place as may be determined by him, such book, document or thing;
- seize any book, document or thing which in his opinion may serve as evidence in any matter in terms of this Act;
- examine or cause to be examined any book document or thing produced to him or seized by him, and make extracts therefrom or copies thereof, and order any person who in his opinion is qualified thereto to explain any entry therein;
- order an employee to appear before him at such time and place as may be determined by him, and question that employee.
4) An authorized person performing any function in terms of this section shall on demand produce the certificate referred to in subsection (2).
5) Any person who--
- falsely holds himself out to be an authorized person;
- refuses or fails to answer fully and satisfactorily any question put to him by an authorized person in the performance of his functions;
- refuses or fails to comply with any lawful request of or order by an authorised person;
- hinders or obstructs an authorized person in the performance of his functions, shall be guilty of an offence.
8. Assessors
1) The Minister may after consultation with the Board appoint so many persons as assessors as he may deem necessary to assist the Director-General in the hearing of any objection in terms of section 91.
2) The assessors referred to in subsection (1) shall be Persons who in the opinion of the Minister represent the interests of employees and employers, respectively, and to that end the Minister may consult any organization representing employees or employers.
3) The number of assessors appointed to represent the interests of employees shall be equal to the number of assessors appointed to represent the interests of employers.
4) The Minister may in addition to the assessors referred to in subsection (1) appoint one or more practitioners, including a medical practitioner appointed under section 2(1)(b), as medical assessors.
5) An assessor shall be appointed for such period and on such conditions as the Minister may determine, but the Minister may at any time terminate the appointment of an assessor who--
- has been guilty of misconduct or neglect of duty;
- is not able to perform his functions m terms of this Act properly; or
- in his opinion no longer represents the interests on the ground of which he was appointed.
6) An assessor shall be paid the prescribed remuneration and travelling and subsistence allowances out of the compensation fund.
9. Compensation payable to assessors
1) If an assessor excluding an assessor in the employ of an employer contemplated in section 84(1)(a)(i), meets with an accident arising out of and in the course of the performance by him or her of his or her functions as assessor and resulting in a personal injury, illness or his or her death, he or she or his or her dependants, as the case may be, shall be entitled to compensation as if he or she were an employee at the time of the accident.
Compensation in terms of this section shall be paid by the Director-General out of the compensation fund.
10. Compensation Board
There is hereby established a board to be known as the Compensation Board.
11. Composition of Board
1) The Board shall consist of--
- the Director-General or an officer contemplated in section 2(1)(a) or (b) designated by him or her, who shall act as chairperson;
- two persons appointed by the Minister, one of whom shall be appointed after consultation with the Minister of Health;
- the Chief Inspector of Occupational Health and Safety or his or her nominee;
- one person as a member and one person as an alternate member appointed by the Minister from a list of the names of not more than three persons nominated in order of preference by The Rand Mutual Assurance Company Limited;
- one person as a member and one person as an alternate member appointed by the Minister from a list of the names of not more than three persons nominated in order of preference by the Federated Employers' Mutual Assurance Company Limited;
- two persons as members and up to two persons as alternate members appointed by the Minister from a list of the names of not more than six persons nominated in order of preference by the South African Medical and Dental Council;
- three persons as members and up to three persons as alternate members appointed by the Minister to represent the interests of all employers from a list of the names of not more than ten persons nominated in order of preference by employers' organizations;
- five persons as members and up to five persons as alternate members appointed by the Minister to represent the interests of all employees from a list of the names of not more than ten persons nominated in order of preference by employees' organizations.
2) An assessor may not be appointed as a member or an alternate member of the Board.
3) An alternate member may attend and take part in the proceedings at any meeting of the Board whenever the member in whose stead he or she has been appointed as an alternate member, is absent from the meeting.
12. Functions of Board
1) The Board shall advise the Minister regarding-->/p>
- matters of policy arising out of or in connection with the application of this Act;
- the nature and extent of the benefits that shall be Payable to employees or dependants of employees, including the adjustment of existing pensions;
- the appointment of assessors;
- the amendment of this Act.
2) The Board may at the request of the Director-General advise him regarding the performance of a particular aspect of his functions.
13. Term of office and remuneration of members of Board
1) The members of the Board appointed by the Minister shall be appointed for a period not exceeding four years and on such conditions as the Minister may determine, but the Minister may at any time terminate the appointment of any member who--
- has been guilty of misconduct or neglect of duty; or
- is not able to perform his functions in terms of this Act properly.
2) The Minister may--
- at the request of a mutual association referred to in section 11(1)(d) or (e) terminate the appointment of a member representing such association; and
- terminate the appointment of a member referred to in section 11(1)(g) or (h) if in his opinion such member no longer represents the interests on the ground of which he was appointed.
3) A member of the Board shall be paid the prescribed remuneration and travelling and subsistence allowances out of the compensation fund.
14. Meetings of Board
1) The Board shall meet at the times and places determined by the chairman.
2) If six or more of the members of the Board request the Director-General in writing with a statement of reasons to convene a meeting, the Director-General shall within 21 days after having received such request convene a meeting of the Board.
3) A quorum for a meeting of the Board shall be nine members of the Board.
4) The decision of more than 75 per cent of the members present at a meeting of the Board shall be the decision of the Board.
15. Compensation fund
1) There is hereby established a fund to be known as the compensation fund.
2) The compensation fund shall consist of--
- any moneys vested in the compensation fund in terms of subsection (3);
- the assessments paid by employers in terms of this Act;
- any amounts paid by employers to the Director-General in terms of this Act;
- any penalties and fines imposed in terms of this Act other than by a court of law;
- any interest on investments of the compensation fund and the reserve fund;
- any amounts transferred from the reserve fund;
- the Payments made to the Director-General in terms of section 88;
- any other amounts to which the compensation fund may become entitled.
3)
- The accident fund established by section 64 of the Workmen's Compensation Act shall, as from the commencement of this Act, cease to exist, and all amounts credited to the accident fund immediately before such commencement, shall as from such commencement vest in the compensation fund.
- All liabilities and rights, existing as well as accruing, of the accident fund shall devolve upon the compensation fund as from the commencement of this Act.
16. Application of compensation fund
1) The compensation fund shall, subject to the provisions of this Act, be under the control of the Director-General and its moneys shall be applied by the Director-General to--
a) the payment of compensation, the cost of medical aid or other pecuniary benefits to or on behalf of or in respect of employees in terms of this Act where no other person is liable for such payment;
b) the maintenance of the reserve fund;
c) the payment of expenses incurred in or in connection with the performance of his functions in terms of section 4(2);
d) the reimbursement of the National Revenue Fund in respect of remuneration paid in terms of section 2(2);
e) the payment of the prescribed remuneration and travelling and subsistence allowances to assessors;
f) the payment of the cost of or in connection with the medical examination of employees;
g) the payment of witness fees in terms of section 6(6);
h) the payment of any other expenditure incurred by the Director-General in the performance of his functions in terms of this Act.
2) The Director-General may transfer any surplus in the compensation fund to the reserve fund.
17. Valuation of compensation fund
1) The assets and liabilities of the compensation fund shall from time to time, as the Director-General may consider necessary, but in any event at intervals of not more than three years, be valued by an actuary appointed by the Minister to determine the sufficiency of the fund.
2) The result of the valuation referred to in subsection (1) shall be included in the next annual report of the Director-General succeeding the completion of the valuation
18. Accounting
1) The Director-General shall receive all money payable to or for the benefit of the compensation fund in terms of this Act, and shall be charged with the responsibility of accounting for all money received and the utilization thereof.
2) The Director-General may transfer any part of the moneys in the compensation fund and the reserve fund to the Public Debt Commissioners for investment
19. Reserve fund
1) There is hereby established a fund to be known as the reserve fund, consisting of cash or investments or both.
2) The amount of the reserve fund shall be determined by the Director-General.
3) The objects of the reserve fund are--
a) to Provide for unforeseen demands on the compensation fund;
b) to stabilize the tariffs of assessment.
4) Payments out of the reserve fund shall take place on the authorization of the Director-General.
5) The reserve fund established in terms of section 66 of the Workmen's Compensation Act shall, as from the commencement of this Act, cease to exist, and all amounts credited to the said reserve fund immediately before such commencement shall as from such commencement vest in the reserve fund established by subsection (1).
20. Accounts and audit
1) The Director-General shall keep such accounts, including an account with a bank contemplated in the Banks Act, 1990 (Act No. 94 of 1990), and records as are necessary for the exercise of proper control over the compensation fund and the reserve fund, and shall prepare yearly balance sheets made up to the last day of the financial year, showing in all necessary detail the assets and liabilities and the revenue and expenditure of the funds.
2) The accounts of the said funds shall be audited by the Auditor-General, and the cost of such audit shall be paid out of the compensation fund.
3) The Director-General shall, as soon as possible after the completion of the balance sheets referred to in subsection (1), submit a copy thereof and a copy of the report referred to in section 4(1)(n) to the Minister, who shall table such copies in Parliament within 30 days after receipt thereof, if Parliament is in ordinary session or, if Parliament is not in ordinary session, within 30 days of the commencement of its next ensuing ordinary session.
21. Income of funds exempt from tax
The income of the compensation fund and the reserve fund, including income from any investments, shall be exempt from income tax.