COIDA Letter of Good Standing: Why You Need One to Bid
What a COIDA Letter of Good Standing is, why so many tenders demand it, how to register with the Compensation Fund and get the letter, and how long it stays valid.
If you employ people and bid on tenders — especially where staff work on site — you will be asked for a COIDA Letter of Good Standing. Not having one is a common, avoidable disqualification.
What COIDA and the letter are
COIDA is the Compensation for Occupational Injuries and Diseases Act. Employers must register with the Compensation Fund and pay an annual assessment that covers employees injured at work. The Letter of Good Standing is the Fund's confirmation that you are registered and your assessments are paid up — proof a buyer can rely on that your workers are covered.
Why tenders require it
Government will not hand a contract with on-site labour to an employer whose staff are not covered for workplace injury — the liability and reputational risk are too high. Construction, cleaning, security and facilities tenders almost always list it as a returnable.
How to get it
- Register as an employer with the Compensation Fund (Department of Employment and Labour)
- Submit your annual Return of Earnings and pay the assessment
- Request the Letter of Good Standing once your account is up to date (the online CompEasy system handles registration and the letter)
Keep it current
A Letter of Good Standing is time-limited (commonly valid for around 12 months or until your next assessment). An expired letter disqualifies a bid just like a missing one, so track its date.
Frequently asked questions
What is a COIDA Letter of Good Standing?+
It is confirmation from the Compensation Fund that you are registered under COIDA and your assessments are paid up, proving your employees are covered for workplace injuries — a common tender returnable.
Do I need a Letter of Good Standing for every tender?+
Mostly where you employ people, especially on-site work (construction, cleaning, security, facilities). The tender's returnables list tells you if it is required.
How do I get a COIDA Letter of Good Standing?+
Register as an employer with the Compensation Fund (Department of Employment and Labour), submit your Return of Earnings, pay the assessment, and request the letter — the CompEasy online system handles this.
How long is the letter valid?+
Typically around 12 months or until your next assessment. An expired letter disqualifies a bid, so renew it before it lapses.
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