Employing in
South Africa

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Expanding into
South Africa

Global expansion is a step to make for any business, regardless of what you wish to achieve. The opportunities that can come with an expansion can be both incredibly exciting as well as intimidating and confusing, especially when you consider all the registration procedures that need to be done and the documentation required.

South African flag
South African flag

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Expanding into South Africa – which is characterised by a qualified and talented workforce, multifaceted employment and tax laws, a developing infrastructure network, and leading sectors in mining, industry, agriculture, and tourism – can bring excitement to the possibilities, but also significant stress to ensuring the entity with the country’s rigorous legal structures and laws.

Ensuring compliance without sufficient knowledge of the country’s laws also adds to the stress of getting your new entity off the ground and ready to test new markets. Going at it without the proper support can increase the costs, time and risks involved.

Each new markets bring new challenges, and these can be worked through more efficiently and cost-effectively with the support of a Professional Employer Organisation (PEO) such as Bradford Jacobs, especially through our Employer of Record (EOR) framework.

This can be best utilised when businesses are just beginning their expansion process and require more information before committing to incorporating an entity and fully establishing themselves in that market.

Country EOR Guide - Bradford Jacobs

Download our Guide to South Africa

Learn all about expanding into South Africa and see what we can do to make your expansion easier.

Download our Guide to South Africa

Learn all about expanding into South Africa and see what we can do to make your expansion easier.

Country EOR Guide - Bradford Jacobs

Hiring Staff
in South Africa

Hiring Staff
in South Africa

The Main Sectors of the South African Economy

The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

Mining is at the core of the economy through the country’s rich reserves of natural resources. In 2019, South Africa was one of the largest worldwide producers of gold, platinum, chromium, manganese, titanium, vanadium, iron ore, cobalt, phosphate, and uranium and had significant coal deposits.
The automotive industry accounts for about 10% of the manufacturing exports, contributes 7.5% to the country’s GDP and employs around 36,000 people. Due to trade agreements with the European Union and the Southern African Development Community, companies producing in South Africa can take advantage of the low production costs and access to new markets.
South Africa is one of the world’s largest producers of chicory roots(4th); grapefruit (4th); cereals (5th). The dairy industry consists of around 4,300 milk producers providing employment for 60,000 farm workers and contributing to the livelihoods of about 40,000 others.
Electronics, clothing and footwear, and communication technology can also appear on the manufacturing landscape. There is growth in the Space industry.
South Africa is a popular tourist destination, with 14.8 million persons visiting the country in 2019, contributing USD$11 billion to the national economy (3.7% of GDP). That same year, tourism directly employed 4,7% of the total workforce (773 533 persons).
South Africa has a sophisticated economic structure, with JSE Limited, the largest stock exchange on the African continent, ranking 17th in the world in terms of total market capitalisation, which is $1,005 Trillion as of August 2020.

The Main Sectors of the South African Economy

The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

Protea flower in South Africa
Mining is at the core of the economy through the country’s rich reserves of natural resources. In 2019, South Africa was one of the largest worldwide producers of gold, platinum, chromium, manganese, titanium, vanadium, iron ore, cobalt, phosphate, and uranium and had significant coal deposits.
The automotive industry accounts for about 10% of the manufacturing exports, contributes 7.5% to the country’s GDP and employs around 36,000 people. Due to trade agreements with the European Union and the Southern African Development Community, companies producing in South Africa can take advantage of the low production costs and access to new markets.
South Africa is one of the world’s largest producers of chicory roots(4th); grapefruit (4th); cereals (5th). The dairy industry consists of around 4,300 milk producers providing employment for 60,000 farm workers and contributing to the livelihoods of about 40,000 others.
Electronics, clothing and footwear, and communication technology can also appear on the manufacturing landscape. There is growth in the Space industry.
South Africa is a popular tourist destination, with 14.8 million persons visiting the country in 2019, contributing USD$11 billion to the national economy (3.7% of GDP). That same year, tourism directly employed 4,7% of the total workforce (773 533 persons).
South Africa has a sophisticated economic structure, with JSE Limited, the largest stock exchange on the African continent, ranking 17th in the world in terms of total market capitalisation, which is $1,005 Trillion as of August 2020.

Commercial Laws in
South Africa

  • The South African Revenue Service (SARS): the nation’s tax collecting authority.
  • The International Cooperation (IC): this division of the SARS is responsible for creating and enhancing relations, through contact, with international Tax and Customs authorities and international organisations.
  • The Department of Labour: it regulates the South African labour market for a sustainable economy. It plays a significant role in reducing unemployment, poverty, and inequality through a set of policies and programmes developed in consultation with social partners.
  • The Labour Relations Act (LRA) of 1995 and amended in 2002 is the leading legislation governing employment law in South Africa. The Basic Conditions of Employment Act (BCEA) deals with most categories of employment law, supplemented by specific statutes, while the LRA is more concerned with such as unfair dismissal, contracts, and workplace regulations.

General requirements

  • Contracts can generally be written or oral, but employees must at least receive a written agreement listing the essential aspects of their role
  • If hiring on a fixed-term contract these must be in writing for employees below a threshold set by the terms of the Basic Conditions of Employment Act (BCEA)
  • Fixed-term contracts must specify the length and the reason why they are necessary
  • Part-time or temporary employees must also have a written contract
  • Probation periods must be for a reasonable time to assess suitability for the role, generally between three and six months
  • Employers are required to ensure that the terms of a written contract or agreement are in the language understood by the employee, or subsequent disciplinary matters may be considered unfair

Commercial Laws in
South Africa

Scenic view of waterfront and Cape Town stadium from Signal Hill
  • The South African Revenue Service (SARS): the nation’s tax collecting authority.
  • The International Cooperation (IC): this division of the SARS is responsible for creating and enhancing relations, through contact, with international Tax and Customs authorities and international organisations.
  • The Department of Labour: it regulates the South African labour market for a sustainable economy. It plays a significant role in reducing unemployment, poverty, and inequality through a set of policies and programmes developed in consultation with social partners.
  • The Labour Relations Act (LRA) of 1995 and amended in 2002 is the leading legislation governing employment law in South Africa. The Basic Conditions of Employment Act (BCEA) deals with most categories of employment law, supplemented by specific statutes, while the LRA is more concerned with such as unfair dismissal, contracts, and workplace regulations.

General requirements

  • Contracts can generally be written or oral, but employees must at least receive a written agreement listing the essential aspects of their role
  • If hiring on a fixed-term contract these must be in writing for employees below a threshold set by the terms of the Basic Conditions of Employment Act (BCEA)
  • Fixed-term contracts must specify the length and the reason why they are necessary
  • Part-time or temporary employees must also have a written contract
  • Probation periods must be for a reasonable time to assess suitability for the role, generally between three and six months
  • Employers are required to ensure that the terms of a written contract or agreement are in the language understood by the employee, or subsequent disciplinary matters may be considered unfair

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