Employ Candidates Compliantly in South Africa

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  1. Overview: South Africa
  2. Global HR Compliance
  3. Global PEO and payroll
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
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Global HR Compliance in Republic of South Africa

If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Record in Republic of South Africa Guide below will help you understand the nuances of labor legislation in the country.

There are two main reasons for companies hiring foreign workforce:

  • Expanding into foreign markets to sell company product or products there. In this case, companies hire sales representatives who would exclusively represent their product in the target market and sell it to their local client base.
  • Hiring the right foreign talent with a unique expertise, often related to IT sphere that cannot be found in the home country or that costs less compared to local specialist with similar skills.

After you have found the right candidate, the question is how to hire and provide compensation to this person so you as a business remain 100% compliant when working with global workforce. Another thing to consider is whether you want to keep the talent long-term and how you can do that.

If you need to hire foreign workforce in Record in Republic of South Africa so you can expand there, then our Global Employer of Record solution may be of help. We help you legally hire and reward your foreign workforce by making them employees via a global employment outsourcing service. This is simple as employ your in-house workforce with the only difference that workers can live anywhere in the world and Acumen International would be their legal employer on your behalf. This means we would bear all employment risks, not you. Also, we manage bonuses, vacations, sick leave and can rent the office and a car for your foreign sales representatives if that is what you need.

With our solution, you can test new foreign markets before deciding whether you are going to get established there. You gain flexibility and expand with reduced costs, and easily withdraw from the unattractive countries.

We are experts in global workforce employment in Record in Republic of South Africa (RSA), and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.

Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.

With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Record in Republic of South Africa.

Hiring and Firing Workforce in Record in Republic of South Africa Guide

# Employment Contracts

An employer and an employee can enter into an employment contract verbally or in writing. According to the Basic Conditions of Employment Act, an employer must provide certain clauses of the employment relationship in writing and no later than on the first day the new employee starts to work. An employer must ensure that all the particulars of an employment contract is clearly understood and well interpreted by the employee. An employer may revise the initial elements of an employment contract and in this case, the employer is required to give the employee a drawn down version of the revised contract. In the event of a contract termination, an employer is legally required to retain the written contract of the terminated employee at least 3 years after termination.

# Minimum statutory employment right

# Hours of work
The regular hours of work may vary for different employees depending on the terms of their employment contract. That notwithstanding, no employee may be allowed to work more than 45 hours per workweek. The maximum daily working hours for employees who work a regular five (or less than five) workweek is set at 9 hours. The maximum working hours for employees who work more than 5 days’ workweek is set at 8 hours per day. Employees may work at night, but must not be forced to do so. Employees who work night shift are entitled to be compensated with a premium pay or a reduction of regular work hour plus a transport fee to the work place. Employees are entitled to at least an hour break (or 30 mins when agreed upon) during each workday, at least 12 hours of uninterrupted rest between each daily shift and a minimum of 36 uninterrupted hours between each weekly shift.

# Probation period
An employer has the right to employ a new employee on a conditional basis first before awarding him the full contract. In that case, an employee may be placed on up to 3 months’ probation to determine his fitness for the job. An employer may end the contract during probation period without any legal obligations towards the employee. In the event of an employee’s deficient performance, an employer may extend the period of probation if the employee shows a good potential to perform better over time, however, not without informing the employee first. An employer (employee) may terminate an employment contract at the time of probation on the provision of 24 hours’ notice.

# Annual leave
For every complete year of service to an employer, an employee is eligible for a 21 day of annual paid leave. An employee may agree with his employer to accrue an hour or day of the annual leave for every 17 hours or 17 days of work he performed respectively. An employee may be paid in lieu of taking his entitled annual leave. Also, an employer is obligated to compensate an employee in cash for any unused leave upon terminating the employment contract.

# Parental leave
Females employees are entitled to 4 months of maternity leave fully paid by UIF. A worker, contributing to UIF, is eligible for a maternity benefit of 38% to 60% of average earnings in the last six months, depending on the insured person’s level of income. Maternity benefit is paid for a total of 17.32 weeks. Maternity leave may be taken from the fourth week prior the due date of childbirth or any other time as agreed with the employer or required by the doctor. Unless with the approval of a doctor or midwife as the case may be, an employee on maternity leave must not be allowed to work until after the 6th month of her childbearing. Regardless of whether an employee has started her maternity leave or not, an employer is obligated to give a 6 week leave to an employee in the event of miscarriage or stillbirth.

# Sick leave
An employee is entitle to one day’s paid sick leave for every 26 days worked during the first four months of employment, and thereafter to 30 days paid sick leave for every 36 months worked (the leave cycle), if the employee provides a valid medical certificate which has been issued by a medical practitioner.

# Overtime
By law, an employee cannot work more than 10 hours of overtime per week. Overtime limit can be increase by the collective agreement to 15 hours per workday for up to 2 months period in any given calendar year. Employees are entitled to overtime pay at a premium rate of 1.5 for every overtime worked during the normal work day/week, and at a double rate if worked on a non-working day.

# State minimum salary
The minimum wage in Record in Republic of South Africa varies depending on the sector of economy an individual works, type of job and regional situation of workplace. All things being equal, the ongoing plan to have a single national minimum wage whereby an employee’s hourly wage cannot be less than 20 rand or 3,500 rand a given month will be effected by 2018.

# Employment termination
An employee is entitled to a prior notification from the employer before an employment relationship can be terminated. This however, does not apply to an employee whose dismissal is as a result of serious misconduct. The duration of a notice of termination is dependent on an employee’s years of service to the company. Usually, an employee is entitled to one-week of prior notice if he has worked up to 6 months in the company, 2 weeks’ notice if he has stayed for at least 6 months, but not more than 12 months with the company, 4 weeks (or two weeks if agreed by collective agreement) if the employee has spent more than 12 months with the employer. Employers may pay their employees in lieu of notice.
An employee is entitled to receive a severance pay if he is dismissed for the reason of restructuring or cut backs in amount of one week’s remuneration for each completed year of continuous service with the employer.

Acumen International can help you fast-track your possibilities of entering and expanding your business in Record in Republic of South Africa by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.

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