If your organization is looking to expand to South Africa, learning about Employment Law should be on top of your priorities list. Otherwise, you will miss out on important information that could play a key role in your expansion strategy – like the 45-hour working week that is standard practice in South Africa, compared to the 40-hour workweek one may be accustomed to in Western societies. Read on to find out all about the minimum wage, contract types, applicable leaves and more in South Africa.
In strictly legal terms, employment contracts are not required to start a professional relationship with an employee.
That being said, the Basic Conditions of Employment Act (BCEA) – the piece of legislation which regulates employment-related contractual agreements – does require employees to communicate a number of employment particulars/conditions when employment begins. So technically, no contract is required upon commencement of a work relationship.
But in practical terms, it makes more sense to have an in-depth, legally-binding contract and avoid any issues that may stem from the lack of clarity of more informal documents.
In South Africa, both fixed-term and indefinite contracts are legal and commonly used by employers.
Fixed-term contracts are usually used for temporary or project-based work. These contracts have a specific start and end date, and the employment relationship automatically terminates on the expiry of the contract. In South Africa, fixed-term contracts are regulated by the Labour Relations Act, which requires that such contracts must be in writing, and the duration of the contract must be reasonable.
Indefinite contracts, on the other hand, do not have a specific end date and continue until either the employee or the employer terminates the contract. These contracts are the default type of employment contract in South Africa and are regulated by the Basic Conditions of Employment Act.
The standard maximum working hours is 45 hours per week or 9 hours per day. Alternatively, if employees’ working hours are spread over 6 days, the maximum number of hours worked in a standard day is 8 hours.
South African workers can work a maximum of 10 hours overtime per week, and not more than 3 hours overtime per day. Additionally, employees can refuse to do overtime work.
According to the law, overtime work should be paid at 1.5x the usual hourly rate – even on Sundays, and even when the employee in question typically works on Sundays. Those employees who do not usually work on Sundays, on the other hand, are entitled to compensation equal to 2x their usual hourly rate.
Employees may choose to get paid time off instead of payment, prorated accordingly. That being said, employers are not allowed to make the decision to give employees time off instead of paying them. This choice is the employee’s to make.
Furthermore, a collective bargaining agreement may raise overtime to 15 hours per week for a maximum of two months within any 12-month period. An agreement could mandate that an employer provide an employee at least 30 minutes of paid time off for each hour of overtime worked and pay them at least their regular rate of pay for overtime worked.
For each hour of overtime worked, an employee should receive at least 90 minutes of paid time off.
Workers in South Africa are legally entitled to a break or meal interval lasting 1 hour for every 5 consecutive hours worked. Employers and employees can come to a mutual agreement to shorten the meal interval to 30 minutes. However, exceptions can be made for employees working less than 6 hours a day, thereby removing their entitlement to an hour-long break.
As of March 2022, the minimum wage in South Africa is of R23,19, which would be approximately $1.27 according to current conversion rates. The minimum wage may be lower in some industries, typically those that require manual labor such as farming.
Employees in South Africa have the right to a set amount of paid sick days. In the initial four months of employment, an employee receives one day of paid sick leave for every 26 days worked. Afterwards, this number grows to 30 days of paid sick leave with every 36 months worked. Upon presentation of a valid medical certificate and when more than two absences happen in a span of eight weeks, an employer is only required to grant paid sick leave lasting over two days or at least longer than one day.
In South Africa, expecting mothers must receive at least 4 months’ leave, beginning at least 4 weeks before the expected birth date and ending at least 6 weeks after the baby is born. Unless the parties specifically agree differently, maternity leave is regarded as unpaid time off.
Fathers in South Africa are entitled to 10 consecutive days off. Like maternity leave, paternity leave is unpaid for by the employer.
A probationary employee may be fired by their employer for any cause that is not prohibited by anti-discrimination laws during this time. Employers have the right to fire workers for misconduct, unsatisfactory work, or should the company not require their services after the probation period is over.
Otherwise, an employee can be terminated according to the terms of their contract.
Yes, companies are required by law to give severance pay to employees, once the latter have been in employment for at least 6 months. Such employees must either receive a severance pay equivalent to one week’s wages or a week’s notice.
Employees having worked for over 6 months in the company – but having not yet reached the 12-month employment mark – must either be paid for 2 weeks’ wages or be given 2 weeks’ notice. After 1 year of continuous employment with a company, employees must receive compensation equivalent to 4 weeks’ wages. Employers are allowed to review the rule in this particular case, reducing it to 2 weeks’ wages or 2 weeks’ notice in the initial employment contract, but not any less.
Grant Geraghty is the longest-serving member of the Africa HR team. This resident subject matter expert and client champion is responsible for gaining a deep understanding of our clients’ unique HR needs in Africa and providing tailored solutions that align with their business objectives. Grant collaborates closely with our clients to ensure that their requirements are properly implemented, providing ongoing support and guidance throughout the process.
Grant brings a wealth of experience to his role, having served as Africa HR’s longest-serving employee. He holds a Bachelor of Commerce degree, with a major in Economics and Business Finance, from the University of Natal in South Africa. Additionally, he has completed a certification program in Payroll and Tax Administration from the University of Cape Town, further enhancing his expertise in HR operations and compliance.
His commitment to delivering exceptional service and his extensive knowledge of HR in Africa make him an invaluable member of the Africa HR team.
Kevina Takoordyal has a BA Hons Business Management from the University of Glamorgan, UK, with MBA in leadership and Innovation, MBA General, PMP Certified, and Agile Scrum Master. She currently works as the Head of Operations at Africa HR Solutions Ltd with more than 20 years of proven leadership capabilities in Operations, Business Development, People Management, Process Optimization, and Project Management in the Financial Services, BPO, Banking Industry, and Heath Care Industry. In Senior leadership roles with an international footprint across Europe working and extensive Pan- African experience from a compliance, finance, and operations angle, Kevina comes across with a panoply of cross-functional skills. Kevina also serves on a few Boards, Non-Independent Executive at MioD and for NGOs on a voluntary basis, a coach and mentor to aspiring female leaders across Africa and Mauritius.
Kevina is a firm believer in Servant Leadership with a strong focus and commitment to uplifting others, with the ability to deliver through a highly engaged – diverse team, and works towards consistently synergistic value creation. While being a focused and adaptive thinker and Kevina is actively participating in panel discussions on Innovation, CX, Digital transformation.
Kevina serves as Project Assessor for the National Youth upskilling program. She has been recognized as Global Talent in a few companies, Ceridian, and International SOS Ltd whereby she has been awarded a few scholarships and had the opportunity to be mentored by Senior Vice President in the US. Award Winner in various fields and at a national level and recognized including Super Achiever Leader Award in Africa in 2016, Awarded Africa Women Leader 2018.
Viloshna is an experienced finance professional with 18 years of expertise in strategic financial planning, financial analysis, cash flow management, systems and controls implementation, financial reporting, and continuous process improvements. She currently serves as Head of Finance & Business Support, where she has successfully automated and leveraged the financial reporting system capabilities to ensure efficient company operations.
Viloshna’s background includes senior roles in a multinational pharmaceutical company and a large listed Mauritian conglomerate. Her meticulous attention to detail and strategic thinking have streamlined financial processes, making her a valuable addition to any finance team. Viloshna is a qualified finance professional with an FCCA qualification and an MBA, bringing valuable expertise to any organization.
In her current role, Viloshna leads the company’s Treasury and Payments function, including the fulfillment of the company’s cross-border payments into Africa. With her strong educational background and extensive experience, Viloshna consistently demonstrates her ability to optimize financial operations, minimize risks, and improve profitability. Her expertise in financial reporting and process improvements make her a valuable asset to any organization.
A qualified lawyer who joined Africa HR Solutions in July 2020, Mark Du Preez has experience working in private practice for a reputable law firm in South Africa. He also played commercially focused roles at a leading private bank, wealth management company, and outsourcing firm in South Africa and Mauritius.
Mark has played a pivotal role in Africa HR Solution’s risk mitigation strategy, which positively impacted P&L performance over the years.
He currently leads the Partnerships function of the company including relationships and oversight with in-country partners (ICPs) across Africa.
Alex has more than 15 years of experience in the global, strategic development of both enterprise and consumer brands in categories including technology, transport, enterprise software, entertainment, and travel.
With experience in roles on both agency and corporate side, he has worked across international brands and has led the development and execution of multi-discipline campaigns across EMEA, NORAM and Asia Pacific.
His focus is on driving meaningful business impact through brand differentiation and building high-functioning, digitally oriented, and analytically driven capabilities. He is motivated by working with, and developing dynamic people, teams, and organizations.
He leads, manages, develops and mentors the Key Account Management department, including line management responsibility for the team of Key Account Managers and Key Account Administrator who represent the Company as the primary communication link between all relevant stakeholders, including clients, third party in-country partners and internal functions.
Originally from Mauritius, he holds bachelor’s degrees in International Business, Finance and Management from the University of Nevada, Reno.