If you’re a small business applying for tenders in South Africa, you’ve probably seen “COIDA Letter of Good Standing” listed as a mandatory requirement. Without it, your bid can be disqualified—even if you meet every other condition.
This guide explains what COIDA is, why you need a Letter of Good Standing, and how to fast-track the application process so you don’t miss tender deadlines.
1. What Is COIDA and the Letter of Good Standing?
- COIDA stands for the Compensation for Occupational Injuries and Diseases Act.
- It protects employees by providing compensation if they are injured or fall ill while working.
- Businesses must register with the Compensation Fund (managed by the Department of Employment and Labour).
The Letter of Good Standing is proof that:
- Your business is registered with the Compensation Fund
- You’ve submitted the required returns
- You are up to date with contributions
Without this letter, government departments won’t award you contracts that involve labour or services.
2. Who Needs a Letter of Good Standing?
Any business that employs staff must register with COIDA.
You’ll need the letter if you are:
- A construction company (building, plumbing, electrical, etc.)
- A cleaning or security provider
- A transport or logistics business with drivers or loaders
- Any business where staff face health or safety risks
Even one employee is enough to require compliance.
3. Documents Required for Application
To apply for COIDA registration and a Letter of Good Standing, prepare:
- Company registration documents (CIPC)
- Certified ID copies of directors/owners
- Proof of address and bank confirmation letter
- Completed W.As.2 form (Application for Registration of an Employer)
- Estimated or actual annual payroll (salary total of all employees)
4. Step-by-Step: How to Apply for a Letter of Good Standing
Step 1: Register as an Employer
- Complete the W.As.2 form
- Submit to your nearest Department of Labour office or email it via the Compensation Fund
Step 2: Get Your Employer Number
- Once registered, you’ll be issued a CF (Compensation Fund) number
Step 3: Submit Your Return of Earnings
- File your W.As.8 Return of Earnings (ROE) annually
- This is based on employee salaries for the previous year
Step 4: Pay the Assessment Fee
- The Compensation Fund issues an invoice based on your ROE
- Payment must be made before the letter is issued
Step 5: Request Your Letter of Good Standing
- Once payment is confirmed, request the letter from the Compensation Fund
- You’ll receive a PDF certificate valid for 12 months
5. Fast-Track Tips
- Register early – It can take weeks if there are backlogs
- Keep payroll records updated – Smooths the Return of Earnings process
- Pay invoices quickly – The letter is only issued after payment clears
- Renew annually – Always check expiry before submitting tenders
6. Common Mistakes to Avoid
- Applying for tenders without checking if your letter is still valid
- Submitting the wrong payroll information on ROE forms
- Forgetting to renew annually—expired letters = automatic disqualification
- Not paying the assessment fee in time
7. How etenderportal.co.za Helps
When you use etenderportal.co.za:
- You’ll see tenders that specifically require a COIDA Letter of Good Standing
- Our guides help SMEs avoid compliance mistakes
- You can prepare your compliance pack in advance and stay ready for opportunities
8. Final Tips
Getting your COIDA Letter of Good Standing is a non-negotiable compliance step for many tenders. Treat it like your passport into projects that involve labour or employee safety.
Government tenders are one of the most powerful ways to grow your business — if you’re prepared and compliant. Register with the Compensation Fund, keep your payroll updated, and always keep your letter valid.