Hiring someone in South Africa
An EOR can sign the local employment contract and run South African payroll while you manage the work. Before you make an offer, find out which entity employs the person and who handles each part of the arrangement.
Who is the legal employer?
Ask for the South African employing entity’s legal name, registration details and its relationship with the EOR brand. Some services deliver through a partner. The contract should say who signs the employment agreement, runs payroll, deals with a CCMA matter and answers the employee’s questions.
An EOR contract does not automatically remove a client’s employment responsibilities. South Africa’s temporary employment service rules can affect the relationship. Section 198A protects certain employees below the applicable earnings threshold; beyond three months, an assignment that is not a qualifying temporary service can result in deemed employment by the client for Labour Relations Act purposes. Get advice on the arrangement you intend to use.
CCMA guidance on sections 198A–D · Checked 23 September 2026
What must be sorted before the first pay run?
Agree the gross salary in rand, working hours, payroll cut-off and funding date before you make the offer. Confirm PAYE administration, employer and employee UIF, SDL where applicable, and Compensation Fund registration or cover. Ask for a sample payslip and the procedure for correcting an error.
The national minimum wage is R30.23 per ordinary hour from 1 March 2026. Specific programmes and sector arrangements can have different requirements. The legal minimum is not a salary benchmark for a specialist role. Confirm the rule that applies to the employee’s work.
Department of Employment and Labour 2026 minimum wage notice · SARS employer tax guide
See the monthly employment budget for the difference between gross pay, employer contributions, benefits and the EOR fee.
What should the contract say about leave and benefits?
The Basic Conditions of Employment Act generally provides at least 21 consecutive days of annual leave per annual cycle, equivalent to 15 working days for a regular five-day week. Agree the accrual, approval process and treatment of public holidays in the contract and payroll system.
Ask the provider to document the current sick leave and parental leave rules, any applicable bargaining council requirements and the benefits promised to this employee. Confirm who pays each benefit and how it is treated for tax. A medical or retirement benefit in a proposal should have its own cost and terms.
BCEA section 20, annual leave · The link supports the annual leave explanation; current parental leave terms need separate confirmation.
What happens when the role ends?
Have the employee’s duties, workplace, hours, pay, benefits, intellectual property and confidentiality provisions reviewed for the role. Confirm permission to work where relevant. A provider’s onboarding estimate depends on documents and checks; it is not a guaranteed legal start date.
Ending the EOR service and ending employment are different events. Ask for the required process, notice, final salary, accrued leave, any severance and provider service fees. Obtain the deposit reconciliation and refund timetable. A service cancellation clause does not replace the employment process.
- The legal employer and local service contacts.
- An itemised monthly invoice and the funding date for the first pay run.
- A draft employment agreement and benefits schedule.
- Who fixes a payroll mistake and who handles a dispute.
- An exit cost example and deposit refund conditions.
General buyer guidance, reviewed 23 September 2026. Obtain advice on the role and employment arrangement before signing.