A Letter of Good Standing is more than a document.
It's your proof of compliance — and the first thing a tender, a client or a supplier will ask to see.
A Letter of Good Standing is issued by the Compensation Fund at the Department of Employment and Labour. It confirms that your business is registered under the Compensation for Occupational Injuries and Diseases Act (COIDA) and is up to date with its returns and payments.
It shows you are a responsible employer and a trusted partner.
Why it matters
- Proves compliance: Shows that your business is registered, active and compliant with labour laws
- Builds trust: Strengthens trust with clients, suppliers, investors and government institutions
- Required for tenders: Many tenders and contracts require a valid Letter of Good Standing
- Reduces risk: Protects your business from debarment, fines and legal complications
- Supports growth: Opens doors to new opportunities and long-term business growth
What it confirms
- You are registered with the Compensation Fund at the Department of Employment and Labour
- You are up to date with your returns and payments — your annual Return of Earnings is submitted and your assessment paid
Keep your status in good standing
- Submit your Return of Earnings to the Compensation Fund every year
- Submit your other returns on time — UI-19, WSP/ATR and EE reports
- Pay your levies and contributions when due
- Comply with employment laws and conditions
- Work with a trusted payroll and compliance partner
The cost of not being in good standing
You can be disqualified from tenders and miss out on valuable business. Clients and partners may choose to work with more compliant businesses. Non-compliance can lead to penalties, fines and possible prosecution, and the delays and reputational damage reach your bottom line.
A Letter of Good Standing is not just a requirement — it's a reflection of your integrity as an employer.
Stay compliant. Stay credible. Stay ahead.
VSI Accountants · August 2026 compliance update · For informational purposes only