COUNTRY

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

Employees are entitled to 21 consecutive days of annual leave after 1 year of continuous service with an employer. Alternatively, by agreement, they can receive 1 day of annual leave for every 17 days worked or 1 hour of annual leave for every 17 hours worked. An employer must pay the employee for the annual leave before its commencement and at a rate at least equal to their regular wages.

Annual leave cannot be accumulated from one year to the next. An employer must ensure employees take annual leave within 6 months after the end of the annual leave cycle.

At the termination of the employment contract, the employer must pay the employee for unused annual leave.

South Africa's Basic Conditions of Employment Act requires employers to grant employees 6 weeks of paid sick leave in each 36-month sick leave cycle of employment with the same employer. An employee is entitled to 1 day of paid sick leave for every 26 days worked during the first 6 months of employment. During an employee's first sick leave cycle, an employer may reduce the employee's entitlement to sick leave by the number of sick leave days taken in the first 6 months of employment. Employees are required to provide a medical certificate after 2 days of illness.

The employer must pay employees their regular wage on their usual payday. If the number of days of paid sick leave increased through agreement, an employee would be entitled to 75% of the wages for the extra leave days.

In South Africa, a pregnant employee is entitled to at least 4 consecutive months' unpaid maternity leave. Under the Unemployment Insurance Act, an employee contributing to the Unemployment Insurance Fund (UIF) is eligible for a maternity benefit paid as 66% of her average earnings in the last 6 months. This benefit is paid for the entire duration of maternity leave. Full benefits are also paid for 4 months in case of miscarriage.

The employee can commence maternity leave at any time from four weeks before the expected date of birth or on a date certificated by a medical practitioner or a midwife. A pregnant employee must notify her employer in writing at least 4 weeks before her maternity leave commencement and at least 4 weeks before returning to work.

Employees who suffer a miscarriage during the third trimester of pregnancy or bear a stillborn child are entitled to maternity leave of 6 weeks after the miscarriage or stillbirth.

South Africa's labor laws grant paternity leave of 10 consecutive days to fathers. The Unemployment Insurance Fund pays this leave at a rate of 66% of the father's earnings. An adoptive father is also entitled to a paternity leave of 10 days from the date the adoption order is granted or that a competent court places a child in the care of a prospective adoptive parent.

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.

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.

Pension

South Africa has no national retirement scheme and no mandatory retirement. The South African Social Security Agency (SASSA) offers a means-tested old-age grant to persons aged 60 and over if their annual income is below a certain amount. The maximum old-age pension is ZAR 2,310 per month and ZAR 2,330 for pensioners aged 75 or older.

Old-age pensioners who require full-time attendance by another person owing to their physical or mental disabilities are also eligible for a Grant In Aid of ZAR 560 per month. These grants are financed through general tax revenues collected on a national basis.

There is a separate pension scheme for government employees in South Africa. It is covered by the Government Employees Pension Fund (GEPF), which pays lump-sum benefits and monthly pension depending on the years of service. Members contribute 7.5% of their monthly salary and employers contribute 16% of their salary.

Dependents/Survivors Benefits

The Unemployment Insurance Act of South Africa grants the surviving spouse, life partner, or dependent child (under 21 years of age or 25 years if studying) the dependent's benefits if the deceased employee had been contributing to the Unemployment Insurance Fund and had accumulated benefits at the time of death. Benefits are paid as 38-60% of the deceased employee's income.

The South Africa Government Employees Provident Fund (GEPF) also provides benefits to surviving spouses and dependent children of deceased government employees.

All employers are responsible for paying survivor benefits through the Compensation Fund in case of death due to occupational reasons.

Invalidity Benefits

Invalidity benefits are paid in the case of non-occupational accident/injury/disease resulting in permanent invalidity. Persons 18 to 59 years of age assessed as having a temporary disability for more than 6 months may receive up to ZAR 2,310 (South African rands) per month and are considered permanently disabled if assessed as medically disabled for more than 12 months. If the employee is admitted to an institution that has a contract with the state to care for them, benefits are reduced to 25% of their maximum amount.

In the case of work injuries, the South African Compensation for Occupational Injuries and Diseases Act covers benefits for employees payable by employers. Benefits are paid according to the type and degree of disability. This benefit's maximum income limit is set to ZAR 597,328 per annum (ZAR 49,777.33 per month), effective March 2024.