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Obtain a letter of good standing from/Register with Compensation Fund


 1. What is a letter of good standing? 

A letter of good standing is issued by the Compensation fund to state that the business is currently registered and does not owe the fund any money. It is also issued  when a business registers with the Compensation Fund and pays the provisional assessed amount.

2. Can a letter of good standing be obtained without being registered with the Compensation Fund?

No, a business must be registered with the Compensation Fund before a letter of good standing can be obtained. You can register with the Compensation fund here.

3. Will I know the reasons why my application has been rejected? 

Yes, we will send you full details on why the letter could not be issued within 2 working days after we have received your order. 

4. Is a letter of good standing the same as a tax clearance? 

No, although a tax clearance (good standing) can be obtained from SARS it is two totally different certificates as the one is issued by SARS based on income tax, VAT, PAYE etc. where a letter of good standing is issued by Compensation Fund.

Additional Info

A letter of good standing can be obtained once the employer has complied with the requirements of the Act, inter alia :

1.  Employer must be registered with the Fund as per section 80 of the COID Act, 

2.  Employer must have submitted all returns of earnings as per section 82 0f the COID Act, 

3.  Employer must be fully assessed as per section 83 of the COID Act, 

4.  Employer must have paid/ settled all outstanding debt as per section 86 of the COID Act.


Employers that have not yet been assessed by the Compensation Fund will first be assessed, up to the current assessment year, and are expected to pay all assessments in order to meet the criteria set out above.   

As soon as we receive your application for a letter of good standing,  we will request it from the Compensation Fund. If there are no outstanding returns/monies on the registration number, the letter of good standing  will be e-mailed to you within 2 working days**


If there are outstanding monies owed to the fund when we apply for the letter, we will notify the client of the outstanding amount. The client can then submit proof of payment to us. We will hand in  the proof of payment with the Compensation Fund. The letter of good standing will then be issued within +- 5 working days after the proof of payment has been submitted and Compensation Fund has no further queries. 

If there are Return of Earnings (ROE) outstanding for one or more year(s) these ROE  must be submitted, assessed by Compensation Fund and paid by the employer BEFORE a letter of good standing will be issued.

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