Outlining the law around staffing a South African Business
South African labour law is regulated by legislation and the common law. The legislation seeks to give effect to the Constitutional right to fair labour practices and the right to take part in collective bargaining. The most important legislation outlining the law around staffing a South African Business are the Labour Relations Act 66 of 1995 (LRA), the Basics Conditions of Employment Act 75 of 1997 (BCEA) and the Employment Equity Act 55 of 1988 (EEA).
The LRA establishes dispute resolution structures specific to labour law disputes, facilities collective bargaining and regulates dismissal of employees.
The BCEA lays down fundamental minimum requirements for employment, such as working hours, overtime, and leave. The BCEA further allows the Minister of Labour to regulate employment in specific industries through sectorial determinations.
The EEA seeks to prohibit unfair discrimination in the workplace and provides for the implementation of affirmative action.
9 important points to remember when entering an employment contract:
- Employment Contract:
An employer is required to conclude a written contract of employment with an employee.
- Contract work:
In the case of non-permanent employment, the period for which it is expected to continue or end date needs to be stated in the contract.
- Working time:
Regulations give rise to rights and obligations to work and rest. No employee is permitted to work more than 45 hours a week. Any work beyond this may be considered overtime.
- Overtime:
It is possible to contractually exclude the payment of hours which qualify as overtime.
- Meal break:
Employees are entitled to a meal interval of one continuous hour after five hours of work, for which they must be paid.
- Annual Leave:
Employees are entitled to 21 consecutive days paid annual leave.
- Overtime leave:
Overtime may not exceed 10 hours in any week and total working hours may not exceed 12 hours per day.
- Employers Financial obligations:
Employers have certain financial obligations from the employment relationship. Compulsory Unemployment Insurance requires the employer to contribute.
- Termination:
If an employer wrongfully terminates employment, the employee is entitled to compensation for breach of contract.
These points strongly outline the general legal duties and obligations of both the employer and employee and are to be fully considered before entering into any employment contract. Both the employee and the employer have the responsibility to understand their role and make good on the provisions outlined.
InterGest South Africa fully understand the respected labour laws and boasts an incredible team to assist with all the staffing, employment, contract work or requirements of companies wishing to consider Africa and South Africa as a new market.
For more information on South African Businesses and successful market entry, visit our website and pay specific attention to our investment guide: https://intergest.co.za/investment-guide/
