In today’s competitive job market, finding the right talent for your organization can be a daunting task. Hiring employees from a foreign country like South Africa can be challenging. As an employer, you have to contend with language barriers and unfamiliar nuances of the local employment laws. Thankfully, there is a solution that can streamline the hiring process for companies looking to expand their business in South Africa– an Employer of Record (EOR).
The Benefits of EOR in South Africa
For companies looking to hire in South Africa, an EOR offers many benefits. Firstly, an EOR can fast-track the hiring process, as they already have an established legal and administrative framework in place. Companies that use an EOR in Sweden can be confident that their documentation and compliance are handled by a team of experienced professionals who understand local labor laws.
Compliance is essential in South Africa, where labor laws are strictly enforced. Employers who violate employment laws can face serious financial penalties and business disruptions. Using an EOR ensures that your company is legally compliant, avoiding unexpected surprises and negative impacts on your reputation.
Why Hire Talent in South Africa?
South Africa sits at the southernmost tip of Africa and borders Namibia, Botswana, Zimbabwe, and Eswatini, and surrounds Lesotho. It has the third-largest economy in Africa, and it is the most industrialized and technologically up-to-date.
South Africa is known for its talented and young workforce, and multiethnic society comprised of a mix of languages and cultures. If you are adaptable and open to learning South Africa’s diverse customs, your business can thrive in South Africa.
South Africa shares more commonalities with Western cultures than other African countries, so this can be an excellent first step in expanding your team throughout the African continent.
While South Africa is a multilingual society, English is the most widely-spoken European language in the country. If you look primarily towards cities like Cape Town and Johannesburg, you should have no trouble finding workers without language barriers.
How Can I Legally Hire Employees from South Africa?
To hire from South Africa, your company needs to have a legal entity operating in the country. Getting an entity set up can be time-consuming. The efforts are only worth it if you intend to dramatically expand your business into the South African market in the long term.
An EOR service provider like Borderless can be an invaluable resource when it comes to hiring employees in South Africa. Not only can they help you navigate complex labor laws and regulations, but they can also offer a range of services to support your business operations. From payroll and tax management to onboarding and offboarding processes, an EOR service can help streamline your business operations.
South African Employment Documents
South African employment regulations are covered under the country’s Basic Conditions of Employment Act.
South African contracts include
- Job titles
- Job duties and responsibilities
- Salary or wages
- Hours of work
And other employment information. South African work contracts are considered legally binding and should be signed by both employer and employee.
Vacation, Breaks, and Holidays
Culturally, South Africa observes a number of national and civic holidays you should consider when building your distributed team.
South Africans celebrate:
- January 1: New Year’s Day
- January 2: Public holiday (New Year's Day)
- March 21: Human Rights Day
- April 7: Good Friday
- April 10: Family Day
- April 27: Freedom Day
- May 1: Workers' Day
- June 16: Youth Day
- August 9: National Women’s Day
- September 24: Heritage Day
- September 25: Public holiday (Heritage Day observed)
- December 25: Day of Reconciliation
- December 25: Christmas Day
- December 26: Day of Goodwill
Taxes and Payment
South African hourly wage is R25,42 (South African Rands) per hour. This converts to 1.41 USD per hour making South Africa an affordable choice for your business expansions without sacrificing on talent.
South Africans pay tax to the South African Revenue Service on a graduated scale. The South African corporate income tax (CIT) structure is more complex, as taxes applicable by industry can vary, especially in sectors like gold mining, one of South Africa’s key revenue streams.
Now that you know the basics of South African labor customs, standards of living, and lifestyle, keep reading for a step-by-step on bringing your new South African team on board.
Employer Responsibilities
An EOR like Borderless takes care of anything to do with legal compliance and HR. That being said, you are still responsible for the day-to-day operations of your business.
Things like onboarding and offboarding, corporate training, defining the scope of work responsibilities, and people management will all fall to you as the employer.
Where an EOR can help you is in making sure the contracts you give your workers are legal in their countries of employment and compliant to account for taxes.
Now that you know the basics of South African labor customs, standards of living, and lifestyle, keep reading for a step-by-step to choose the best EOR for you.
Choosing an EOR
To select the best-fit EOR for hiring your distributed team, there are a few factors you should consider:
1. The Needs of Your Team: To ensure a successful hiring process from South Africa with EOR, it is essential to start with a clear idea of the positions you need to fill, the skills required, and the type of employment contract. This will guide the rest of the process and ensure that you are identifying candidates that meet your business needs.
2. Proven Track Record: Has your EOR successfully hired and onboarded from this region before? It is important to research the EOR service providers available in South Africa and select one that meets your company’s specific needs. Look for a provider who offers comprehensive services, pricing transparency, and has a proven track record of compliance.
3. Scale of Service: How comprehensive do you want your EOR services to be? The best EOR service or package can look very different for your company, depending on whether you are making a large or small-scale expansion into South Africa.
4. Security and Data Privacy: Your company’s intellectual property (IP) is at higher risk on a digitally-connected team than an in-person working environment. Make sure you review your EOR’s security credentials. A good EOR service should be able to answer any questions you may have related to company IP and how they plan to protect your sensitive data.
How Borderless Can Help
As an Employer of Record (EOR) service, Borderless is an excellent solution for companies looking to hire in South Africa. By outsourcing your hiring administration tasks to a third-party provider like Borderless, your company can save time and money, and focus on your core business objectives.
Our guide to hiring your dream team will help ensure a successful hiring process and lay the foundation for a productive and efficient workforce. Book a demo with Borderless today to see how we can help.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
