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Employers face own-pocket compensation costs for uninsured workers

Samkelisiwe Mavimbela by Samkelisiwe Mavimbela
August 12, 2026
in News
Reading Time: 3 mins read
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Employers face own-pocket compensation costs for uninsured workers
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Lobamba- Employers who fail to insure all their workers could be forced to meet compensation costs from their own resources when employees are injured or killed at work, Labour and Social Security Minister Phila Buthelezi has warned.

Buthelezi said some employers were allegedly insuring only a fraction of their workforce, leaving the majority exposed to financial uncertainty in the event of workplace accidents.

The Minister made the declaration while presenting the Ministry of Labour and Social Security’s First Quarter Performance Report for the 2026/27 financial year in Parliament before the Senate portfolio committee.

He said the problem had emerged in the implementation of workman’s compensation, where some employers were not ensuring that all their employees were covered.

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Buthelezi said an employer could have 200 workers but insure only about 20, meaning that the remaining employees would not have the same protection if they suffered workplace injuries or died.

“When workers get injured or die at work, we find that the affected employees were not insured,” he said.

According to the Minister, this could leave employers with no option but to pay compensation from their own pockets.

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He warned that such costs could have serious financial implications for businesses, particularly where workplace accidents result in serious injuries or fatalities.

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Buthelezi said government was engaging stakeholders to address the gaps in the workman’s compensation system and would consider amending the legislation if necessary.

The issue was raised by Senators during the presentation of the quarterly report, with legislators calling for stronger intervention by the authorities responsible for workman’s compensation.

Buthelezi said the ministry was also working to strengthen the department responsible for workman’s compensation by filling vacant positions.

He said vacancies had been identified and advertised, with the expectation that filling the posts would improve the department’s ability to carry out its mandate.

The Department of Labour conducted 788 inspections between April and June 2026,  up from 598 during the corresponding period last year. This represents a 31.8 per cent increase in inspections.

Of the inspections conducted during the quarter, 504 were routine inspections while 284 were follow-up inspections. Follow-up inspections increased sharply from 36 during the same period in 2025.

Buthelezi said the increase in follow-up inspections reflected a stronger focus on ensuring employers comply with labour laws and correct violations identified during previous inspections.

Meanwhile, the Occupational Health and Safety Unit inspected 83 workplaces during the quarter, recording 212 occupational injuries and two fatalities.

Buthelezi also called on employers to strengthen their ability to respond to workplace accidents, saying companies should ideally have safety officers and trained first-aid personnel or paramedics available to assist injured workers before they are taken to hospital.

He said immediate intervention by properly trained personnel could help prevent injuries from becoming more serious.

Samkelisiwe Mavimbela

Samkelisiwe Mavimbela

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