Skip to main content
Looking for help? Contact our Help & Support Team
South Africa

How to Hire Workers in South Africa | Employer of Record (EOR) in South Africa

Entering the South African market? Our EOR services make it easy to establish your business in South Africa. We handle all aspects of local employment, including payroll, benefits, and compliance with South African labor laws. With our expertise in the South African market, you can confidently expand your business, knowing that you have a trusted partner managing your international employment requirements.

Country Hiring Guides:
HR Best Practices in 99+ Countries

South Africa, known for its diverse culture, stunning landscapes, and strong economy, offers great opportunities for businesses looking to expand internationally. TCWGlobal simplifies the process of hiring in South Africa, offering comprehensive solutions for building your contingent workforce.

With a population of over 61 million people, South Africa boasts a large and diverse workforce. From the vibrant streets of Johannesburg to the beautiful vineyards of Stellenbosch, the country offers a unique blend of culture and natural beauty.

When expanding your business into South Africa, compliance with local regulations is essential. TCWGlobal, as your employer of record, ensures that your contingent workforce is fully compliant, reducing risks for your organization.

In addition to compliance, TCWGlobal provides personalized services and benefits for your contingent workforce. Whether you require assistance with payrolling management, benefits administration, or any other aspect of HR, our team is committed to meeting your needs.

By partnering with TCWGlobal, you can confidently expand your business into South Africa, knowing that your contingent workforce is in capable hands. Our expertise and comprehensive solutions make us the ideal partner for businesses seeking to establish a presence in this dynamic market.

Fixed-Term Contracts

Fixed-term contracts are permitted in South Africa, but they are scrutinized for abuse and may not be longer than three months in duration. If a fixed-term contract is extended beyond three months without a justifiable reason, the Worker may have a claim that the contract is indefinite (aka “permanent”). Also, if a Worker has a reasonable expectation of renewal and the contract is not renewed at the end of the term, they can claim that the expiration was a dismissal in which case it must be procedurally and substantively fair.

Probationary Periods

Probationary periods of reasonable length, typically not lasting longer than 3 months, are permitted for the limited purpose of testing the Worker’s work performance. Termination of an agreement during a probationary period may only be done if there have been set performance standards, monitoring of the work, communication regarding shortcomings, warnings, guidance where necessary, and an opportunity for the Worker to state their case. Notice is required for termination during a probationary period of the same length that would be provided during the non-probationary portion of the engagement.

Holidays

Workers in South Africa recognize 12 paid public holidays. A Worker must agree in writing in order to perform work on a public holiday and should be compensated with double pay.

Vacation

Workers are entitled to at least 21 consecutive days of paid vacation for every 12 months of employment. If agreed to in the employment contract, vacation can be accrued at a minimum of one day for every 17 days worked. Accrued but unused leave must be paid at termination.

Sick Leave

Workers with a five-day work week are entitled to 30 days of paid sick leave and workers with a 6-day work week are entitled to 36 days of paid sick leave in a 36-month period. During the first six months of employment, Workers are entitled to one day of paid sick leave for every 26 days worked. After that period, Workers are entitled to their full paid sick leave entitlement for the 36-month period. If a Worker exhausts their entitlement before the 36-month end of the cycle, any further sick leave will be unpaid leave.

Working Hours

Working hours regulations apply to all workers except those who are senior managers, sales staff who travel, or workers who work less than 24 hours a month. The maximum working hours are 45 hours per week and nine hours per day if the workweek is five days long. If it is longer than five days, Workers must not work more than eight hours per day. Sundays are considered a day of rest. Workers are entitled to at least 1 hour of unpaid rest period when  working more than five continuous hours. This rest period can be reduced to 30 minutes only if the worker agrees to it in writing. There must be 12  consecutive hours between the end and start period of daily work and at least 36 hours period of rest weekly which includes Sunday unless otherwise agreed upon by both parties.

Overtime

When working hours are regulated, overtime can only be worked by agreement and is limited to 10 hours per week and not more than 3 hours of overtime per day. It must be compensated at 150%. 

Termination

Except in cases of misconduct or incapacity, Workers are entitled to fair cause and notice of termination. The amount of notice depends on the length of service as outlined, below: 0 – 6 months: one week; 6 months – 1 year: two weeks; 1+ years: four weeks. If the termination is for operational reasons only (aka “redundancy”), severance pay of at least one week’s remuneration for each completed year of service will be due so long as the Worker did not unreasonably refuse alternative employment.

Resignation

Workers must recognize the same notice periods outlined above in resigning. The employer can elect to pay the Worker in lieu of notice. If the employer requests the Worker continue to work the notice period and the Worker refuses, no compensation is due.

Mandatory Employer Costs

Unemployment Insurance Fund (UIF), Occupational Injuries and Diseases Act, Skills Development Levy (SDL). Approximately 2.4%.

How an EOR Can Help You Win Fast

TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.

Common Pitfalls in Choosing an EOR

When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.