Hire compliantly inSouth Africa Talk to an Expert

Written Agreements

Employers must provide written contracts (with all job particulars) to employees upon hire. Any changes must be documented and given to the worker. The employer must keep a copy of the contract for three years after termination. If an employee cannot understand the written particulars, the employer must ensure that they are explained to them in a language and a manner that they understand. Contracts of employment cannot waive or disregard collective agreements or arbitration awards even if the contract was concluded before the agreement or award came into effect.

Employers with fewer than 5 employees are exempt from the requirement to provide written particulars.

While there are no express laws regarding restrictive covenants in employment contracts, the courts in South Africa have maintained the validity of non-compete and non-solicitation clauses in employment contracts if they are reasonable in terms of their scope, duration, and geographical area, and are necessary to protect the business interests of the company.

Oral Agreements

There are no provisions regarding oral contracts in South Africa's Basic Conditions of Employment Act. All contracts must be made in writing. If an employee cannot understand the written particulars, the employer must ensure that they are explained to them in a language and a manner that they understand.

Implied Agreements

Even in the absence of a contract, an employment relationship is implied if at least one of the following is present:

• The person working is subject to the control or direction of another person
• The person’s hours of work are subject to the control or direction of another person
• In the case of a person who works for an organization, the person forms part of that organization
• The person has worked for that other person for at least an average of 40 hours per month over the last 3 months
• The person is economically dependent on the other person for whom they work or render services
• The person is provided with tools of trade or work equipment by the other person
• The person only works for or renders services to one person

This provision does not apply to persons who earn ZAR 261,748.45 or above per year. Persons who earn above ZAR 261,748.45 are considered employees despite the absence of a contract only if they meet certain criteria outlined under common law.

According to South Africa's labor law, the statutory number of work hours cannot exceed 45 hours weekly, 9 hours daily (excluding lunch break) if working a 5-day week, and 8 hours daily (excluding lunch break) if working more than 5 days a week. Working hours can be extended by up to 15 minutes a day or 60 minutes a week by collective agreement. The limit on working hours does not apply to employees earning more than the threshold (261,748.45 (South African rands) per annum, effective April 1, 2025).

Employers and employees can also agree on a compressed working week where employees work up to 12 hours a day without exceeding the weekly limit of 45 hours.

In 2023, public holidays are as follows:

• New Year’s Day: January 1 (Observed January 2)
• Human Rights Day: March 21
• Good Friday: April 10
• Family Day: April 13
• Freedom Day: April 27
• Workers' Day: May 1
• Youth Day: June 16
• National Women’s Day: August 9
• Heritage Day: September 24 (Observed September 25)
• Day of Reconciliation: December 16
• Christmas Day: December 25
• Day of Goodwill: December 26

The labor law only stipulates that a probationary period should be of reasonable duration, negotiated, and stipulated in the employment contract. The probationary period must be determined in advance.

The probationary period can only be extended for suitable reasons, and the extension period must be reasonable to achieve the employer’s legitimate purpose.

Probation should not be used to deprive an employee of the opportunity for permanent employment. It is unfair for employers to dismiss employees who complete their probationary periods and then replace them with newly-hired employees. Employees can be dismissed during the probationary period for incompetent performance.

Notice Period

The labor law of South Africa requires notice periods of the following lengths:

• 1 week if the employee has worked up to 6 months
• 2 weeks if the employee has worked from 6 months to 1 year
• 4 weeks, if the employee— (i) has worked for 1 year or more; or (ii) is a farm worker or domestic worker who has been employed for more than 6 months.

Employers can waive the notice period requirement by remunerating the employee for the notice period's duration.

A collective agreement can permit a shorter notice period but not a longer one. The notice of termination must be in writing. Notice of termination must not be given while the employee is on leave. No agreement can require or permit an employee to give a period of notice longer than that required of the employer.

Severance Benefits

South Africa's labor law requires an employer to pay severance if an employee is terminated because of the employer's operational requirements related to economic, technological, or structural needs. The severance pay will be at least 1 week's salary for every year of continuous service with the employer. Severance pay is not paid if an employee unreasonably refuses to accept their employer's offer of alternative employment.

When an employee is terminated for other reasons, employers must compensate them for any unused leave. If the employee has worked at least 4 months but not an entire annual cycle, then the employee is entitled to compensation equal to 1 day's wage for every 17 days worked.

Minimum Wage

In South Africa, every employee is entitled to a wage of no less than the national minimum wage. The current national minimum wage is ZAR 28.79 (South African rands) per hour, effective March 2025. New minimum wages for specific categories of employees are as follows:

• Farm workers - ZAR 28.79 per hour
• Domestic workers - ZAR 28.79 per hour
• Workers in extended public works program - ZAR 15.83 per hour

The National Minimum Wage Commission sets the national minimum wage. Its role is to review the minimum wage annually and make recommendations to the Minister on any adjustment, which must commence on a date fixed by the President.

Employers can determine the payment frequency of wages in individual employment contracts. Wages can be paid daily, weekly, fortnightly, or monthly in cash, by check, or direct deposit into bank accounts. Employers must pay remuneration no later than 7 days after the e completion of the period for which the remuneration is payable.

Overtime, Holiday & Vacation Pay

Overtime (including work done on Sundays and public holidays) is worked by mutual agreement between employer and employee. It is limited to three hours a day and ten hours a week. Employees who work overtime are entitled to receive at least 150% of the regular hourly wage rate. Employees earning more than the threshold [ZAR 261,748.45 (South African rands) per annum, effective April 1, 2025] are not eligible for overtime pay. A collective agreement may increase the maximum allowed overtime to 15 hours a week but cannot be in force for longer than two months in a 12-month period.

Work done on weekly off days or public holidays is remunerated at 200% of the regular wage.

Annual leave is paid at a rate equal to the employee’s regular wage.

Visas

South Africa has the following visa categories:

• Visitor visas are issued to persons who want to temporarily visit the country for tourism or business purposes for 90 days or less.
• Transit visas are issued to foreign nationals en-route to neighboring countries.
• Study visas are issued to people who wish to study in South Africa. The study visa holder may conduct part-time work not exceeding 20 hours per week.
• Business visas are issued to individuals who want to invest a cash amount in South Africa set from time to time by the government.
• Medical treatment visas are issued to people who want to visit South Africa for medical treatment lasting less than three months.
• Relatives visas are issued to foreign nationals who are members of a citizen or a permanent resident's immediate family.
• Work visas are issued only to foreigners where South African citizens with the relevant skills are not available for hire.
• Remote Work Visa - it allows foreign nationals to stay and work remotely from the country for up to 6 months. They must earn a minimum of ZAR 1,000,000.
• Retired person visas are issued to persons with a minimum monthly income of ZAR 37,000 (South African rands) who wish to retire in South Africa.
• Exchange visas are issued to foreigners who wish to participate in cultural, economic, or social exchange programs. Their duration cannot exceed 12 months.
• Certain visas are issued for compliance with treaty conditions.

Work Permits

Work visas are issued to foreign nationals for a set duration and only when local skills are not available for hire. Work permits or temporary visas for work are issued by the Department of Home Affairs.

• The general work visa is valid for the contract's duration or a period not exceeding 5 years
• The critical skills work visa is issued for a period not exceeding 5 years
• The intra-company transfer work visa is issued to transfer an existing employee from a foreign branch to a South African branch. It is valid for 4 years and is both non-renewable and non-extendable
• The corporate visa allows corporate entities to employ a predetermined number of employees