A practical overview of the principal employment, remuneration, leave and payroll issues for businesses considering hires in South Africa.
01Contracts & local framework
Hiring in South Africa requires review of Basic Conditions of Employment Act 75 of 1997 and Labour Relations Act 66 of 1995. Confirm written terms, job classification, pay frequency, probation and the correct contract language (English and other South African languages), as appropriate.
02Working hours & minimum standards
Check standard weekly hours, overtime, rest periods and the current National Minimum Wage, including sector exemptions or wage determinations.
03Annual, parental & sick leave
Under the Basic Conditions of Employment Act, employees generally receive at least 21 consecutive days of annual leave per 12-month cycle. Check additional maternity, parental, sick and family responsibility protections.
04Payroll, tax & benefits
Assess PAYE withholding, Unemployment Insurance Fund contributions, possible Skills Development Levy and sector-specific benefits through SARS and relevant authorities. Review payslip information, payroll currency (South African rand (ZAR)) and local statutory filings.
05Ending employment & notice
Review lawful dismissal reasons, procedural fairness where required, notice, accrued leave and any severance or final payment under Basic Conditions of Employment Act 75 of 1997 and Labour Relations Act 66 of 1995. Obtain specialist advice for redundancies.
06Work permits & contractor classification
Non-citizens may need immigration or employment authorization before working in South Africa. Evaluate contractor status against real control and working practices, and check invoicing and tax obligations.