A competitive price and a strong track record can still lose you a tender if one document is missing from the submission: a valid letter of good standing COIDA South Africa clients and government entities increasingly require before they'll even evaluate a bid.
A Letter of Good Standing, issued by the Compensation Fund under the Compensation for Occupational Injuries and Diseases Act, confirms that your business is registered for COIDA, that your annual Return of Earnings has been submitted, and that your assessment is fully paid up. In practical terms, it's proof that if one of your employees, or a client's employee working alongside yours, is injured on a job, there's a compliant compensation framework behind your business.
Larger corporates and government entities carry real legal and financial risk if they engage a contractor who isn't properly covered for workplace injury compensation. Requiring a Letter of Good Standing shifts that risk assessment upfront, before a contract is signed, rather than discovering a gap after an incident occurs. For many public sector and corporate tenders, it's now a non-negotiable submission requirement, not a nice-to-have.
The most common reason businesses can't obtain or renew their Letter of Good Standing is a lapsed or inaccurate Return of Earnings submission, which is due annually between April and May. An outstanding assessment payment, even a relatively small balance, will also block issuance. Using an outdated industry classification code can distort your assessment and create discrepancies that delay the letter's issue while the Fund investigates.
Submit your annual Return of Earnings accurately and on time every year, treating it as a non-negotiable compliance deadline rather than routine admin you can push back. Pay your assessment promptly once it's calculated, since even a small outstanding balance can hold up renewal. Set a calendar reminder to renew your letter before it expires, rather than waiting until a client requests one urgently and discovering it has lapsed. Keep a digital copy readily available for your tender and procurement team, so it can be attached to a bid submission without delay.
Typically 12 months from issue, provided your COIDA registration, Return of Earnings and assessment payments remain current throughout that period.
You generally still need to be registered and submit a nil Return of Earnings to remain compliant, though requirements can vary, so confirm your specific position with the Compensation Fund.
If your Return of Earnings and payments are brought up to date, renewal can often be processed relatively quickly through the Compensation Fund's online system, though it's far better to avoid the lapse in the first place.
Your Letter of Good Standing is a small administrative document with an outsized impact on your ability to win business. Keep your Return of Earnings and assessment payments current year-round, and you'll never lose a tender to a paperwork gap. For more on statutory compliance, see our blog, and current requirements.
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