What it means
In this glossary, Letter of Good Standing means the occupational compensation document associated with the Compensation Fund. Other organisations may use similar wording for different purposes, so the issuer and context matter.
The Department's guidance connects good standing with employer registration, earnings returns, assessment payment arrangements and applicable reporting obligations. The letter expresses a status within that system. It is different from a receipt showing that one payment was made.
The document must also belong to the employer being checked. A matching trading name alone may not resolve an unclear legal identity. The official verification route is important because a saved PDF can be outdated, altered or supplied for a different entity.
Why it matters
Customers may request this evidence when checking a contractor. The Department also identifies good-standing checks in the relationship between parties giving work and contractors. A reviewer needs to understand the actual requirement rather than treating the letter as a decorative attachment.
A useful review considers authenticity, identity and time. Is the document genuine through the issuer's verification route? Does it relate to the employer carrying out the work? Does its valid period satisfy the buyer's stated requirement? These questions should not be collapsed into “the PDF opens”.
If a letter cannot be obtained, the cause needs investigation. The Department identifies matters such as account payments and audit blocks in its guidance. Repeatedly downloading an older copy does not resolve the underlying account question.
Example in practice
Illustrative example: A facilities manager receives a contractor's Letter of Good Standing with a bid. The manager notices that the valid period ends before the proposed site-access date. Rather than editing the expiry date in the PDF or assuming a previous acceptance still applies, the contractor checks the current issuer record and the customer's actual conditions.
A second issue appears: the letter names a related company, while the offer and proposed workers belong to another legal entity. Even if the first company's letter is genuine, it does not automatically establish the position of the company performing the contract.
This example illustrates separate reasons a document may be unsuitable. A genuine letter can still be for the wrong employer or period. The resolution requires the correct current evidence and, where necessary, clarification from the issuer or buyer. It cannot be supplied by changing the document's appearance.
What it is not
A Letter of Good Standing is not a SARS Tax Compliance Status PIN, CIPC registration certificate or UIF registration confirmation. Each concerns a different question. One does not substitute for another simply because a tender folder labels them all “compliance”.
It is not proof that a contractor has the technical capacity, equipment or experience to complete a particular job. Nor is it a guarantee that the buyer will award the contract, that no workplace accident will occur or that every later compensation claim will be accepted.
Finally, the valid period printed on one letter should not become a universal renewal rule. Check the current document and any applicable dated issuer notice. Historical extensions or an arrangement accepted in another period should not be assumed to continue indefinitely.
Sources and review
Checked on 30 September 2026. Use the linked official guidance for current requirements and forms.
- Department of Employment and Labour: ROE Online services
Official gateway distinguishes employer registration, ROE submission, obtaining a letter and verifying a Letter of Good Standing.
- Department of Employment and Labour: Compensation Fund contact centre questions
Supports separate claims and employer processes, and the good-standing conditions described on printed page 42. Historical rates, deadlines and procedural details in this compilation are not treated as current.
- Department of Employment and Labour: Compensation Fund employer obligations
Supports the distinction between employer registration, earnings declarations, assessment payments and claim administration. This page contains old dates and contact details; those are not adopted as current instructions.
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