Hire in South Africa
Begin your journey into human resources best practices and hiring in South Africa here.
South African Currency
South African Rand (ZAR)
The Capital of South Africa
Pretoria
Time Zone in South Africa
GMT+2
Important Facts About the Country of South Africa
Introduction to South Africa
South Africa, officially known as the Republic of South Africa (RSA), holds the position of the southernmost country in Africa. Recognized by the World Bank as a newly industrialized nation, it boasts the second-largest economy on the continent, following Nigeria. South Africa is a member of both the Commonwealth of Nations and G20. The country’s administrative structure includes three capital cities: Pretoria (executive), Bloemfontein (judicial), and Cape Town (legislative).
What to Know about South Africa’s Geography
South Africa is encircled to the south by a 2,798-kilometer-long coastline that spans the Atlantic and Indian Oceans. Its northern boundaries are shared with Namibia, Botswana, and Zimbabwe, while to the east and northeast, it shares borders with Mozambique and Eswatini (previously known as Swaziland). The country also completely encloses the enclaved nation of Lesotho.
Climate in South Africa
South Africa experiences a predominantly temperate climate due to its location, bordered by the Atlantic and Indian Oceans on three sides. The country’s climate varies widely, from the harsh desert conditions of the southern Namib Desert in the extreme northwest to the rich subtropical climate in the east. As it is situated in the Southern Hemisphere, South Africa undergoes its winter season from June to August.
The Culture of South Africa
South Africa stands out as a melting pot of cultures, making it one of the world’s most culturally rich countries. Despite a significant portion of the population residing in rural areas where cultural traditions are preserved, the country does not have a single, uniform culture. Instead, it boasts a mosaic of diverse cultures, with different cultural influences dominating various regions. Among the notable cultures in South Africa are those of the Khoikhoi and San, Zulu, Ndebele, Xhosa, and Sotho communities.
Religions Observed in South Africa
Nearly 80% of South Africa’s population identifies as Christian, predominantly belonging to various Protestant denominations, alongside a smaller number of Roman Catholics and other Christian groups. About 15% of the population does not adhere to any religion. The remaining portion of the population follows Islam, Hinduism, traditional African religions, Judaism, or falls into an unspecified category.
Languages Spoken in South Africa
South Africa recognizes 11 official languages: Ndebele, Pedi, Sotho, Swati, Tsonga, Tswana, Venda, Xhosa, Zulu, Afrikaans, and English. A significant portion of the population is bilingual or multilingual. Zulu is the most common language, spoken by 23% of the people, with Xhosa at 16%, and Afrikaans at 14%. English serves as the main language for government and parliamentary communication.
South African Human Resources at a Glance
Employment Law Protections in South Africa
South Africa is divided into nine provinces, each with its own provincial government that has the authority over certain legislative areas. Nonetheless, the national government retains exclusive control over employment law.
The cornerstone of employment legislation in South Africa includes the Basic Conditions of Employment Act (BCEA) and the Labour Relations Act (LRA). The BCEA covers essential employment aspects like the requirement for written contracts, wage payment, hours of work, break periods, annual and sick leave, maternity and other parental leaves, family responsibility leave, and notice requirements. It does not apply to employees working less than 24 hours per month. The LRA addresses issues surrounding unfair dismissals, labor practices, union activities, collective bargaining, strikes, workplace representation, and the terms of fixed-term and part-time employment.
Other important employment legislation comprises the National Minimum Wage Act, the Employment Equity Act (EEA), and the Occupational Health and Safety Act.
Employment Contracts in South Africa
Employers are required to provide employees with a formal, written employment contract that must include specific details such as payment, work hours, and leave rights.
In South Africa, employment contracts can be either for a fixed period or indefinite, accommodating both full-time and part-time employment arrangements.
Temporary employment via staffing agencies is permitted. However, should these temporary employees be employed for more than three months, they will be considered employees of the hiring company rather than the staffing agency.
South Africa's Contract Terms
An employment agreement can be verbal or written. Nevertheless, the Basic Conditions of Employment Act (BCEA) stipulates that employees working at least 24 hours per month must receive a written statement outlining the primary details of their employment:
- Full name and address of the employer
- Employee’s name
- Employee’s job role and responsibilities
- Place of work
- Start date of employment
- Ordinary hours and days of work
- Remuneration or the rate and method of calculating wages
- Rate for overtime work
- Cash payment or other entitlements
- Frequency and method of wage payment
- Deductions from remuneration
- Leave entitlement
- Notice period in the event of employment termination or, for fixed-term employment, the termination date
- Any period of employment with a previous employer that counts toward the employee’s length of service with the current employer
- A list of any other documents forming part of the employment contract, indicating their location accessible to the employee
Employers with a staff of less than five are exempt from furnishing written details on the last three items mentioned above.
It is the responsibility of the employer to ensure the employee comprehends the document’s contents. If necessary, they must confirm that the provisions of the document are explained to the employee in a language and manner that the employee can understand.
Pre-Employment Checks
Medical examination
Employers may request an applicant to undergo a medical examination in accordance with relevant legislation.
Criminal background check
Performing a criminal background check is allowed, contingent upon the individual’s informed consent. However, if a third party conducts the criminal record check, prior authorization from the Information Regulator is necessary.
Reference and education checks
Employers can conduct professional reference and education checks, ensuring that individuals are informed and provide their consent.
South Africa's Guidelines Regarding Probation Period/Trial Period
Termination of employment during the probation period is subject to the contractual termination notice, which is typically not less than one week.
Regulations and Rules Regarding Working Hours in South Africa
The maximum weekly working time is 45 hours, and daily working hours should not exceed eight hours for schedules over five days per week or nine hours for schedules of five days or less per week.
Employees can opt for a “compressed working week,” allowing up to 12 hours of work on one or more days without being considered overtime. However, the regular weekly working time should not surpass 45 hours, and no more than 10 hours of overtime should be worked in a week.
A meal break of at least 60 minutes is generally required after five continuous hours of work. Additionally, employees are entitled to a daily rest period of at least 12 consecutive hours, and a weekly rest period of at least 36 consecutive hours, including Sunday unless otherwise agreed.
South African Laws Regarding Overtime
Employees are allowed to work overtime if they consent or if a relevant collective agreement permits it. The maximum overtime is 10 hours per week, although a collective agreement may authorize up to 15 hours for a maximum of two months within a 12-month period. Employees have the right to decline work beyond 12 hours in a single day.
Compensation for overtime is mandatory, with a pay supplement of at least 50% in addition to the regular rate. Alternatively, through mutual agreement, employees can be compensated with either:
- Normal pay for overtime hours worked, plus time off equivalent to 30 minutes for each hour worked.
- Time off equivalent to 90 minutes for each overtime hour worked, with no payment for the overtime hours.
South African Timesheets
Employers are mandated by the Unemployment Insurance Contributions Act, in conjunction with the Income Tax Act, to maintain comprehensive records for each employee. These records must encompass details of remuneration disbursed, deducted taxes, and contributions to the unemployment insurance fund.
The retention period for these records is five years from the date of the final entry. It is imperative that these records are accessible for scrutiny by officials from the South African Revenue Service and the Unemployment Insurance Fund.
Rules Regarding Bonus and 13th Month Pay in South Africa
In South Africa, there are three prevalent bonus types: the Christmas bonus (commonly known as the ’13th cheque’), annual performance bonus, and production bonus. While employers are not legally obligated to disburse bonuses, if it becomes an established custom or practice, it transforms into a condition of employment.
For instance, if the Christmas bonus is traditionally anticipated, the employer must notify employees at least six months beforehand if it won’t be granted in a particular year. Failing to inform employees well in advance, especially near year-end, can be construed as unfair labor practice.
To circumvent such issues, many employers have opted to eliminate the Christmas bonus, instead incorporating the amount into the employee’s basic salary. It is crucial for both employees and employers to recognize that bonus payments are not guaranteed, and employers should communicate promptly if bonuses will not be dispensed.
Termination
South African employment law does not recognize the concept of terminating an employee’s contract “without cause” or “at will.” Fairness, both substantively and procedurally, is mandated when an employer terminates a contract, usually permissible only if the employee breaches the employment agreement.
There are three recognized fair grounds for dismissal, each requiring specific procedures:
- Misconduct: A thorough investigation and disciplinary enquiry are essential.
- Operational requirements (redundancy/retrenchment): Consultation between employer and employee is crucial to reach a consensus.
- Incapacity (ill health, poor work performance, and incompatibility): This may involve providing assistance or allowing time for improvement or alternative options.
Notice of termination by the employer is prohibited during any period of entitled leave, except for sick leave. Employees hold the right to resign with notice at any time and for any reason. Termination without notice is permitted if the employer has rendered continued employment intolerable or jeopardized.
South Africa's Requirements Regarding Notice Periods
In South Africa, statutory minimum notice periods for employees are outlined based on their period of employment:
- 0 to less than 6 months: 1 week notice
- 6 to less than 12 months: 2 weeks notice
- Over 12 months: 4 weeks notice
These same periods apply if an employee chooses to resign when the employment contract doesn’t specify the notice period. However, contractual agreements may extend the notice period, often seen in contracts for senior management and executives. Collective agreements might also prescribe longer notice periods. Additionally, employees may receive compensation in lieu of notice.
Redundancy/Severance Pay in South Africa
In the event of an employee’s dismissal due to operational reasons, the employer is obligated to provide compensation equivalent to at least one week’s remuneration for each completed year of service. Additionally, any supplementary payments agreed upon during the consultation process must be extended.
Moreover, the employer has the option to offer remuneration in lieu of notice, contingent upon mutual agreement with the employee, regardless of whether the notice is given by the employer or the employee.
Post-Termination Restraints / Restrictive Covenants
Enforceability of restrictive covenants is based on the principle that the party seeking enforcement must establish a legitimate proprietary interest and a valid business interest, such as safeguarding client relationships or protecting trade secrets. The restrictive measures must be deemed reasonable in terms of their nature, duration, and geographical scope.
In the case of non-compete agreements, a duration of 12 months is typically considered reasonable.
Other Termination Formalities
- Full name of the employee
- Name and address of the employer
- Commencement and termination dates of employment
- Job title or a brief work description at the termination date
- Employee’s remuneration at the termination date
- Reason for termination (if requested by the employee)
- Information about any applicable bargaining council or sectoral determination that pertains to the employer’s business
The entitlement to a certificate of service does not apply to employees who work less than 24 hours a month.
Fixed Term Contacts for South African Employees
A fixed-term contract concludes upon the happening of a specified event, the accomplishment of a designated task or project, or on a predetermined date, excluding the employee’s regular or agreed-upon retirement age.
There are some statutory restrictions on fixed-term contracts, namely:
- It only applies to employees earning below a specific threshold (ZAR 241,110.59 per annum)
- to employers with a workforce of at least 10 employees (or at least 50 employees for businesses operational for less than 2 years, unless the employer operates multiple businesses or was formed by the division or dissolution of an existing business for any reason).
An employer can propose a fixed-term contract or consecutive fixed-term contracts, provided each contract is for less than three months. However, if either the initial contract, successive contracts, or their cumulative duration extends beyond three months, a fixed-term contract or successive contracts are allowed only if:
- the work assigned to the employee has a limited or specific duration; or
- the employer can show any other reasonable grounds for specifying the term of the contract.
The most important aspect of providing a fixed-term contract for longer than three months is that it needs to be for a justifiable reason, such as:
- Substituting for another employee during their temporary absence from work;
- Handling a temporary surge in workload expected to last less than 12 months;
- Engaging a student or recent graduate for training or gaining work experience;
- Dedicated work on a specific project with a limited or defined timeframe;
- Employment of a non-citizen granted a temporary work permit;
- Participation in seasonal work;
- Involvement in an official public works scheme or similar public job creation initiative;
- Filling a position funded by an external source for a limited period;
- Employing an individual beyond the normal or agreed retirement age.
If an employer enters into or extends a fixed-term contract surpassing three months, and the nature of the work lacks limitations or definiteness, or the employee fails to provide a justifiable reason for the contract’s term, it will be regarded as an indefinite duration contract.