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Employer of record South Africa (EOR)
Directly employing employees in South Africa involves setting up a local subsidiary. It is time-consuming, expensive and highly complex. An Employer of Record (EOR) can help you avoid these issues.
If you want to hire in South Africa, you need to make sure you do so in a way that complies with all local regulations. To do that you need to partner with a company with local insights. Having an Employer of Record means giving you access to an expert company that will take on all the legal and administrative responsibilities of handling employment in South Africa.
Future Teams will ensure you remain legally compliant without having to establish a legal entity.
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A quick intro call to find out more about Future Teams and how we work
Outsourcing to South Africa made easy
Outsourcing to South Africa is a great way to access high-quality, cost-effective talent. We make it easy to hire remote staff in a vast range of roles from customer services to financial services, IT support, digital marketing, and much more.
Quick Facts
South Africa offers a host of compelling reasons for companies looking to hire employees
The most obvious and most common reason why companies outsource is due to the cost incentives. South African salaries are 50-60% less than their UK equivalents.
South Africa is only one or two hours ahead of the UK (depending on the time of year), which means you can outsource all sorts of operations with little disruption. Communication can happen during work hours and people can be on call whenever they are needed.
Another compelling draw for South Africa is the clear cultural similarities with the UK. South Africa’s society is highly educated, multicultural and hard-working. Many of the most listened to and watched television programs, films and music closely align to the UK. Working with people in South Africa is an easy cultural fit and can foster good project results and easy collaboration
South Africa’s workforce is highly trained with an above-average number of people in further education and a growing number of graduates. Most importantly there is a good supply of workers in a range of disciplines from customer services, to marketing, IT, accounts, and software development. The range and depth of the skills on offer make South Africa an attractive destination for complex and demanding jobs.
The rise of digital technology is breaking down borders around the world. Thanks to video conferencing software and other remote collaboration tools it is now possible to engage with talent around the world. Today businesses may be routinely working on projects with a multi-disciplinary team of people working in many different parts of the world.
South Africa represents a vibrant market, and is often referred to as a gateway to Africa. Outsourcing operations may not only support your work in the UK, but it can also be the first step to expanding your work into the new and exciting markets on offer around Africa.
What is an Employer of Record (EOR)?
An Employer of Record helps foreign companies manage employees based in South Africa. An EOR will enable you to ensure compliance with all employment regulations without establishing a legal entity.
It’s a fast and easy way to manage South Africa-based employees. As an Employer of Record Future Teams will become the official employer of your workers and as such will assume all legal liabilities for them.
We handle all legal responsibilities including managing payroll, annual leave, and taxes. We will ensure compliance with regulations and keep you updated on any changes to the law as and when they occur.
Why use an employer of record?
An Employer of Record is a fast and effective way to hire people in South Africa. Because you do not need to have an established legal entity in the country you can get started right away without the need to set up a subsidiary.
We are therefore a great option for someone who is:
- Moving into the country and wanting to test the waters before committing fully.
- Only has a small number of employees in South Africa.
- A small company with limited resources that wants the benefit of a fully functioning HR department.
- Wants support from an expert company with a full understanding of South African employment law.
- Wants to avoid compliance issues through a lack of regulatory knowledge.
Working with an EOR offers a flexible way for companies to hire and onboard employees without having to set up a legal entity or incorporate a company. With a dedicated Employer of Record on your side, you can move forward confident in the knowledge that an expert company is handling all the administrative and legal issues for your employees.
Salaries in South Africa
In general, salaries in South Africa are around 50%-60 lower than in the UK. We can provide guidance on salaries for those businesses looking to appoint us as their Employer of Record.
Staff entitlements in South Africa
Full-time employees are entitled to:
Annual leave: Employees will be entitled to 15 annual leave days, plus South African Public holidays. (We can request that they take UK bank holidays off if this works better for you).
Maternity leave: Maternity leave starts four weeks before the due date and employees are entitled to four consecutive months of leave. All this leave is unpaid but employees can make claims to the unemployment insurance fund. Employees will not be able to start work again within six weeks of the birth without special clearance from a medical professional.
Parental leave: 10 consecutive days of unpaid leave.
Sick leave: Employees are entitled to 30 days of sick leave at full pay over three years. This only kicks into effect after the first six months of work. During that initial time, an employee gets a day’s sick leave for every 2 months worked.
Employer of Record Vs Outsourcing
When using us as Employer of Record you will handle recruitment and salary negotiations yourself. Although we will be the employee’s legal employer, our contract with you means you must allow us to meet our obligations as an employer in South Africa. Staff are employed as permanent members of staff, which means all of the rules around permanent employees in South Africa, such as grievance procedures, unfair dismissal, and redundancy regulations must be followed.
When outsourcing with Future Teams we will handle the recruitment and salary negotiations for you. You will have an outsourcing agreement with us whereby the employee’s wages and our fees are combined into one single invoice. Due to the nature of the agreement between us, we can employ employees in a manner whereby 30 days’ notice can be served to terminate their contract at any time, without the need to follow a grievance procedure or risk falling under redundancy regulations.
What is an Employer of Record (EOR)?
An Employer of Record helps foreign companies manage employees based in South Africa. An EOR will enable you to ensure compliance with all employment regulations without establishing a legal entity.
It’s a fast and easy way to manage South Africa-based employees. As an Employer of Record Future Teams will become the official employer of your workers and as such will assume all legal liabilities for them.
We handle all legal responsibilities including managing payroll, annual leave, and taxes. We will ensure compliance with regulations and keep you updated on any changes to the law as and when they occur.
Why use an employer of record?
An Employer of Record is a fast and effective way to hire people in South Africa. Because you do not need to have an established legal entity in the country you can get started right away without the need to set up a subsidiary.
We are therefore a great option for someone who is:
- Moving into the country and wanting to test the waters before committing fully.
- Only has a small number of employees in South Africa.
- A small company with limited resources that wants the benefit of a fully functioning HR department.
- Wants support from an expert company with a full understanding of South African employment law.
- Wants to avoid compliance issues through a lack of regulatory knowledge.
Working with an EOR offers a flexible way for companies to hire and onboard employees without having to set up a legal entity or incorporate a company. With a dedicated Employer of Record on your side, you can move forward confident in the knowledge that an expert company is handling all the administrative and legal issues for your employees.
Salaries in South Africa
In general, salaries in South Africa are around 50%-60 lower than in the UK. We can provide guidance on salaries for those businesses looking to appoint us as their Employer of Record.
Staff entitlements in South Africa
Full-time employees are entitled to:
Annual leave: Employees will be entitled to 15 annual leave days, plus South African Public holidays. (We can request that they take UK bank holidays off if this works better for you).
Maternity leave: Maternity leave starts four weeks before the due date and employees are entitled to four consecutive months of leave. All this leave is unpaid but employees can make claims to the unemployment insurance fund. Employees will not be able to start work again within six weeks of the birth without special clearance from a medical professional.
Parental leave: 10 consecutive days of unpaid leave.
Sick leave: Employees are entitled to 30 days of sick leave at full pay over three years. This only kicks into effect after the first six months of work. During that initial time, an employee gets a day’s sick leave for every 2 months worked.
Employer of Record Vs Outsourcing
When using us as Employer of Record you will handle recruitment and salary negotiations yourself. Although we will be the employee’s legal employer, our contract with you means you must allow us to meet our obligations as an employer in South Africa. Staff are employed as permanent members of staff, which means all of the rules around permanent employees in South Africa, such as grievance procedures, unfair dismissal, and redundancy regulations must be followed.
When outsourcing with Future Teams we will handle the recruitment and salary negotiations for you. You will have an outsourcing agreement with us whereby the employee’s wages and our fees are combined into one single invoice. Due to the nature of the agreement between us, we can employ employees in a manner whereby 30 days’ notice can be served to terminate their contract at any time, without the need to follow a grievance procedure or risk falling under redundancy regulations.
Pricing
Find out how much we can save your business on recruitment and wage costs
Employer of Record
for clients who already have candidates ready to go
- Onboarding to include contracts & payroll
- Ongoing HR
- Remote worker productivity software + £15 p/month
- Pre-employment screening to include employer referencing, credit, fraud and criminal checks + £95 one off fee
- Full grievance procedure required to manage performance or terminate employment
- 2-month salary deposit required
Outsourcing
for clients looking for recruitment + a more flexible way of hiring
Custom
- Recruitment
- Onboarding to include contracts & payroll
- Ongoing HR
- Remote worker productivity software
- Pre-employment screening to include employer referencing, credit, fraud and criminal checks
- Cancel at anytime with 30 days notice (no grievance procedure required)
- No salary deposit required
from
£
800
per month
Inc. wages & fees
Plan your outsourcing strategy
South Africa’s outsourcing market is ripe with opportunity. Few other locations offer the same combination of low labor costs with a highly skilled, diverse, skillset.
To help plan your South African outsourcing strategy, download our PDF today.
Book a free consultation
A quick intro call to find out more about Future Teams and how we work
