Ordinary hours of work are limited to a maximum of 45 hours per week and 9 hours per day for an employee that works for five days or less per week or 8 hours per day if the employee is working for more than five days per week. An agreement to a compressed week may affect the ordinary maximum working hours. Overtime is subject to agreement between the employer and employee and is limited to either 3 hours per day or 10 hours per week. An employer cannot force an employee to do overtime or demand that it be done without consideration. The minimum consideration for overtime is at least 1.5 times the employee's ordinary wage or, if the employee is working on a Sunday or public holiday and they are not usually required to do so, 2 times the employee's ordinary wage. Alternatively, an employee and employer can agree to paid time off as consideration for working overtime but this subject to mutual agreement.
National Holidays
New Year’s Day
Human Rights Day
Good Friday
Family Day
Freedom Day
Workers’ Day
Youth Day
National Women’s Day
Heritage Day
Day of Reconciliation
Christmas Day
Day of Goodwill
Leave
Employees are entitled to annual, sick, maternity, paternity, parental, and adoption leave.
Employment Contracts
A statement of employment terms is required. However, an employment contract is the best practice.
Types of Employment
There are three types of employment in South Africa: Employees, Temporary Agency Workers, and Independent Contractors.
Employment Costs
Employers must contribute 1% to the Unemployment Insurance Fund (UIF) and 1% to the Skills Development Levy (SDL).
IC Class Factors
A status assessment is multi-faceted and dependent upon a number factors and a totality approach is required in order to determine the outcome. Prevalent considerations include (but are not limited to) an analysis of the degree of control, subordination, exclusivity, economic risk of individual, integration into the organisation, subcontracting of work and the right to substitution.
Labor Leasing
No labor leasing license is required.
Minimum Wage Requirements
The national minimum wage is R27.58 per hour and it applies to general workers, farm and domestic workers, permanent, fixed term, casual and temporary workers.
Medical Benefits
An employer must pay an employee the pay they would have ordinarily received on the employee’s usual pay day. Sick leave runs on a “sick leave cycle” which is a period of 36 months (3 years) where an employee is entitled to paid sick leave that equals the number of days they would normally work during a period of six weeks i.e. if the employee works for 5 days a week, they are entitled to 30 days paid sick leave. During the first 6 months of employment, an employee is entitled to 1 day paid sick leave for every 26 days worked. During the employee’s first sick leave cycle, an employer may reduce the employee’s entitlement by the number of days taken during those 6 months.
Probationary Periods
Probation periods are permissible but should not be used as a way of preventing an employee from permanent employment. It should be for a reasonable duration, taking into account the nature of the role and the time it may take to determine suitability. Generally, 3-6 months is considered reasonable. To dismiss someone on their probation period or in order to extend it requires the employer to do all they can to prevent this beforehand and follow a fair procedure. If an employer does decide to terminate or extend, the employer should advise the employee that they have the right to refer the matter to a council or the Commission.
Termination Notice
Termination notice requirements are as follows: 1 week if the employee has been employed for 6 months or less; 2 weeks if the employee has been employed for more than 6 months but not more than 1 year; 4 weeks if the employee has been employed for 1 year or more or, in the case of a farmworker or domestic worker, employed for more than 6 months.
Severance
Severance payments are only permissible where the termination is for operational requirements (economic, technological, structual or similar needs). Severance pay should be paid to an amount equal to at least 1 week’s pay for each completed year of continuous service with the employer.
Pre-hire Checks
Immigration / RTW checks
Education, references and employment history do not need consent but it is best practice to gain consent before doing these checks.
Credit reports should only be sought if instructed by the consumer, the employee’s role requires this check i.e. in finance, and if consent of the employee is sought.
Criminal background checks are only permissible when consent is sought and fingerprints given.
Medical checks are only permissible if consent is sought.
An employee should be notified of what background checks are going to be done.
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