Labor law
in South Africa.

SALARY PAYMENT IN South African Rand (ZAR, R)

CONTRACT LANGUAGES English

PAYROLL TAX 2.00%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours
Get Started

Horizons-owned entity with local country experts in Seoul.

We offer fair, scalable, and transparent pricing on South Korea PEO service. Contact us for a cost breakdown

End service in South Korea with no additional penalties or fees.

Including vision, dental, death & disability, travel, and more.

Hire and pay talents
with Horizons in
180+ countries

Get started

South Africa

Labor law in South Africa – Overview

The country’s labor laws are designed to protect workers’ rights and ensure that they are treated fairly. Some of the key labor laws in South Africa include the Basic Conditions of Employment Act, the Labour Relations Act, and the Employment Equity Act.

The Basic Conditions of Employment Act sets out the minimum standards for working conditions in South Africa, including working hours, leave entitlements, and minimum wages. The Labour Relations Act regulates the relationship between employers and employees and provides for collective bargaining and dispute resolution.

The Employment Equity Act aims to promote equal opportunities in the workplace and eliminate unfair discrimination. It requires employers to take affirmative action to redress past imbalances and ensure that their workforce is representative of the country’s demographics.

Notice period laws in South Africa

Dismissals in South Africa

Notice periods for dismissal and resignation are the same in South Africa. They are as follows:

During probation → 1 week
After probation<6 months employment → minimum 1 week
6 months to 1 year employment → minimum 2 weeks
>1 year employment → minimum 4 weeks

Despite these being the minimum requirements, the standard notice period is 1 month.

Resignations in South Africa

As discussed above, the standard notice period for resignation is one month.

Severance laws in South Africa

The severance requirements are listed in Section 41 of the Basic Conditions of Employment Act where it is stated:

Employees who have been employed for more than 12 months are entitled to severance pay if they are dismissed for operational requirements or due to the employer’s insolvency.
The amount of severance pay is one week’s pay for each completed year of service.
The maximum amount of severance pay is capped at the equivalent of 12 months’ pay.
If the employee is dismissed for an unfair reason then the consequence could be paying the employee severance for up to 12 months.

Hiring in South Africa, Made Easy

Your business can easily hire employees in South Africa without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

What are the most relevant legal documents related to employment law in South Africa?

The most relevant legal document related to employment in South Africa are the Basic Conditions of Employment Act, the Labour Relations Act, and the Employment Equity Act

Can I terminate an employee during their probationary period in South Africa? How much notice do I need to give?

In South Africa you can terminate an employee during their probationary periods for certain reasons which are as follows:

Individual-related → misconduct, poor work performance, incapacity.
Business-related → based on economic, technological, and/or structural needs of the employer.
Other reasons that may have been stated and agreed upon in the contract.

Can the employee terminate employment during their probationary period in South Africa? How much notice do they need to give?

In South Africa an employee is allowed to terminate employment during their probationary period. It is typical for them to give one week’s notice to the employer.

After the probationary period, what is the process to terminate employment in South Africa?

If an employer wants to dismiss an employee in South Africa, the employer must give the proper notice depending how long the employee has been with the company. It is best practice to: (1) inform that employee of the issue or reasoning in writing; (2) conduct a meeting with the employee about the issue or reason; (3) inform the employee of the decision in writing after the meeting, and; (4) give the proper amount of dismissal notice depending on how long the employee has been with the company. Typically the standard amount of notice period is one month

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons completely took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO

"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. When they advised our international expansion, they spoke confidently and were knowledgable on all subject matters pertaining to international employment."

Gary PaskyVice President of Software Development

"On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. With Horizons the result was fast, efficient, and fit-for-purpose. We recommend Horizons as an EOR provider.”

Chris MorrellManaging Director

"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO

"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."

Katia FlamandHuman Resources