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EMPLOYMENT & HR COMPLIANCE

Employment and HR compliance for South African employers

The first hire changes your legal position. You become an employer, with obligations under the Basic Conditions of Employment Act (BCEA), the Labour Relations Act (LRA) and other legislation, whatever your contract says. This guide covers the basics that small employers most often miss.

Give every employee written particulars

The BCEA requires employers to give employees written particulars of employment when they start, including their remuneration, hours of work and leave. Beyond compliance, a written contract is your best evidence of what was agreed if there’s ever a dispute.

Know the notice minimums

The BCEA sets minimum notice periods that depend on how long the employee has been employed: one week for up to six months, two weeks for six months to a year, and four weeks after a year. A contract can offer more than the minimum, but not less.

Contractor or employee?

The law looks at the reality of the relationship, not the label. If someone works under your control, in your hours, using your equipment, and depends on you for most of their income, they may well be an employee. Both the LRA and BCEA contain a presumption of employment that applies to people earning below the earnings threshold, when certain factors are present. Mislabelling employees as contractors can expose you to labour claims and unpaid contributions.

Register and contribute

Employers generally need to register with the Unemployment Insurance Fund (UIF) and the Compensation Fund (under COIDA). Check the current registration and contribution requirements for your business.

Minimum wages and sector rules

The national minimum wage is adjusted regularly, and some sectors have their own determinations or bargaining council agreements. Always check the current figures rather than relying on an old contract template.

Dismissal needs a fair reason and a fair process

Under the LRA, a dismissal must be both substantively and procedurally fair. Skipping the process is one of the most common and costly employer mistakes. Get advice from a qualified attorney before dismissing someone.

Next steps

  • Get the documents: our Employer Starter Pack (R3,300) is built for first-time employers.
  • Not sure what else you’re missing? Take the Legal Health Check.

Guides in this section

  • What must an employment contract contain in South Africa? Coming soon
  • Independent contractor or employee: how to tell Coming soon
  • Probation periods: what employers can and can’t do Coming soon
  • Registering for UIF and COIDA: a first-time employer’s guide Coming soon

Information, not advice

ELS provides legal information, not legal advice. Nothing on this site creates an attorney-client relationship.

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