The job market in South Africa continues to evolve, and is becoming an increasingly appealing location for foreign enterprises, either through establishing a presence in the country or hiring workers remotely.The skilled workforce in South Africa has shown itself increasingly willing to work for companies based outside of the country, largely due to the greater range of opportunities this can bring. For global businesses, being able to access a young, talented and ambitious talent pool in South Africa undoubtedly brings with it several significant advantages.
However, while there are incentives for foreign companies establishing a presence in South Africa (whether hiring locals or bringing in workers from overseas), it is important to understand what it takes to set up a business here in terms of compliance with the latest workplace legislation, and the requirements for critical work visas and corporate visas.
Advantages of hiring a South African workforce
There are several advantages that foreign businesses can enjoy when engaging South African workers, either in the workplace or remotely.
The South African government has introduced several initiatives to promote inward investment to create jobs and grow the economy. For instance, government assistance is available for infrastructure projects, such as roads and transport links, as well as the building of energy generating facilities. Green energy projects may also receive government backing, as will enterprises with an emphasis on youth employment.
The capacity of the workforce in South Africa can also deliver a range of positive outcomes for employers. Young South Africans speak English well, and this also helps in terms of workplace culture. There are large numbers of university graduates (around 200,000 annually), who are very eager for opportunities with international companies to put their education to productive use. There is also a strong entrepreneurial spirit in the country, particularly amongst young people, and this makes them innovative, creative employees.
At the same time, there are serious skills shortages in some sectors in South Africa, and so there are opportunities for foreigners to relocate, either as an individual or as part of an organisation expanding into the country.
South African employment laws and regulations
If you are looking to hire workers in South Africa, it is important that you are equipped to navigate the country’s employment laws and legislation, which are somewhat unique in light of the country’s past. Broadly speaking, the aim of these is to ensure there is equitable participation in the workforce by all sections of society.
In addition, there are regulations in place to ensure that people are paid at the appropriate rate and receive all the benefits to which they are entitled, as well as to make sure that deductions are made in accordance with employment law.
For employers, it is also important to ensure that anyone brought to South Africa to work is eligible so to do and has the appropriate visa.
Employment Equity Act (EEA)
It is essential that any employer in South Africa understands and is in compliance with the Employment Equity Act (EEA). This has been designed to redress the inequities of the apartheid era by ensuring employment equity and countering the effects of discrimination.
The aim of the EEA is to eliminate unfair discrimination in employment, and to achieve a diverse workforce that is broadly representative of the population as a whole.
Designated Employers
Under the terms of the EEA, organisations that are classified as Designated Employers have very specific obligations when it comes to equity in employment.
These include implementing affirmative action measures for designated groups, preparing an employment equity plan in consultation with employees, and being obliged to report to the Director-General with regard to the progress made in the implementation of the plan.
Employment Equity Plans
As above, Designated Employers are required to prepare and report on the progress of an Employment Equity Plan.
The aim of these plans is to support employers in their efforts to achieve employment equity, and requires analysis of all their employment policies, practices and procedures. A profile of the workforce should also be prepared.
All Employment Equity Plans are required to be submitted to the Department of Labour in order for progress to be measured.
B-BBEE compliance
B-BBEE stands for Broad-Based Black Economic Empowerment, and is a process for increasing black participation in the workforce across all sectors.
Companies in South Africa that comply with B-BBEE enjoy a number of benefits, including greater community and consumer support, as it is seen as an indicator of social responsibility. In addition, any organisation that wants to do business with the South African government is required to be B-BBEE compliant.
Discrimination and harassment
Both direct and indirect discrimination are outlawed in South African employment law. This includes discriminating against both employees and job applicants based on race, gender, sex, pregnancy, marital status, family responsibility, ethnic or social origin, colour, sexual orientation, age, disability, religion, HIV status, conscience, political opinion, culture, language, birth or on any other arbitrary ground.
Discrimination is defined by the International Labour Organisation as being any policy that prevents equality of opportunity or treatment in employment.
Recruitment practices
The equity and anti-discriminatory polices outlined above don’t only apply to the workplace; they also need to be adhered to and followed when recruiting and hiring workers.
This means that the regulations be applied during every stage of the recruitment process, from advertising a job through to the final appointment stage.
Equitable compensation
All employees in South Africa are required to be compensated at a fair and equitable rate. In practice, this means it is not lawful to pay people doing the same job at different rates based on policies that are biased or exclusionary.
Disability accommodations
The Employment Equity Act requires that reasonable accommodations are made for employees with disabilities. This includes both the job application and hiring process, as well as in the workplace.
The aim is for people with disabilities to be beneficiaries of affirmative action measures,
and as such requires facilities and equipment to be fully accessible.
Work permits and visas
Employers in South Africa should be aware that there are two types of visas that are available to foreign workers.
The Critical Skills Work Visa is designed to help businesses and organisations to fill critical skills gaps that have been identified by the government. These are usually issued for five years, and it is not necessary for an individual to have secured employment before applying for a Critical Skills Work Visa.
A Corporate Visa, on the other hand, is granted to a corporate entity rather than an individual. It enables the organisations to hire a set number of foreign workers for a period of three years.
Labor laws and regulations in South Africa
As can be seen from the laws and regulations discussed above, South Africa has some unique requirements when it comes to hiring and workplace practices.
At the same time, like any other jurisdiction, there are also labor laws pertaining to working hours, overtime, leave, and termination procedures.
Any organisation looking to operate in South Africa and take on workers (either in person or remotely) needs to be acquainted with these laws in order to ensure that all employees are being paid at the appropriate rate, and employers are making all the deductions required.