Letter of Good Standing
Quick Answer
What is Letter of Good Standing?
A Letter of Good Standing is the Compensation Fund‘s proof that an employer’s COIDA returns and payments are up to date.
Letter of Good Standing explained
Tenders, construction sites and corporate supplier contracts require it. It is issued only to compliant employers and dies with your compliance.
Who it applies to: Contractors and tendering businesses.
Cost: Free once compliant.
Related terms and guides
Official source: Department of Employment and Labour
Always verify this information with official South African government sources. Rules, fees and thresholds change. Check SARS, CIPC, the Department of Employment and Labour or gov.za before you act.
About BizAnswers: BizAnswers is a privately owned South African company – not a government department. Our guides are free to read and show you how to do things yourself through official channels. If you would rather have the paperwork handled for you, we assist individuals and businesses with filing their South African tax returns and staying compliant, which is a paid service, not a free government service. Contact us for help.
Last reviewed: September 2026 by the BizAnswers editorial team. How we write and check our guides.