Hiring in South Africa Without a Local Entity: Legal Pathways Explained

Employer of Record solution to hire talent in South Africa without a local entity

Expanding your team into South Africa offers access to a highly skilled, English-speaking workforce at a significantly lower cost than hiring in the UK, Europe, or the U.S. For global companies looking to tap into this market, the question quickly arises: How can you legally hire talent in South Africa without setting up a local legal entity? 

The answer lies in partnering with HireJustNow — a trusted Employer of Record (EOR) that legally employs staff on your behalf while you retain full control over their day-to-day responsibilities and performance.

As your EOR partner, HireJustNow becomes the legal employer in South Africa, taking on all the statutory obligations required under local labour law. This includes issuing compliant employment contracts, managing payroll, handling tax deductions (PAYE), registering for and paying Unemployment Insurance Fund (UIF) contributions, and ensuring your team is covered under the Compensation for Occupational Injuries and Diseases Act (COIDA). 

One of the most important components of this process is the employment contract. Under the Basic Conditions of Employment Act (BCEA), every employee must have a written contract that clearly outlines core terms, such as job title and duties, place of work, working hours, remuneration, leave entitlements, and notice periods. HireJustNow drafts tailored contracts that not only meet these legal requirements but also reflect your company’s operational needs and global standards.

We also assist employers with navigating more complex areas of compliance, including public holidays, earnings thresholds, and working hours.

  • South African law recognises 12 official public holidays per year, but you are legally required to honour at least 10 of these. If an employee works on a public holiday, they are entitled to double pay or a paid day off in lieu, unless otherwise agreed in writing. One can also swap these days with a UK bank holiday, for example, as long as the employee does not have fewer than 10 public holidays per year. We help structure public holiday policies that meet local standards while still accommodating your global calendar.
  • The earnings threshold, set by the Department of Employment and Labour, determines which employees are entitled to protections such as overtime pay and maximum working hours. We ensure that these distinctions are clearly reflected in each contract and that your employment practices align with local law.
  • Working hours are another key compliance area. Employees earning below the earnings threshold may not work more than 45 ordinary hours per week and are entitled to overtime pay for additional hours worked. This can create challenges for companies whose core business hours are outside of South African time zones. HireJustNow works closely with you to craft legally compliant schedules that strike a balance between employee well-being and international workflow demands.

Without a partner like HireJustNow, international companies would need to register a South African entity (Pty Ltd), appoint local directors, register with SARS, open a local bank account, and ensure ongoing compliance with payroll, tax, and labour legislation — just to onboard one employee. This can be a costly and time-consuming process. By working with HireJustNow, you avoid all of these hurdles and can begin hiring talent in South Africa in a matter of days, with complete peace of mind that your employees are legally employed and fully compliant with South African labour law.

In short, HireJustNow enables you to build and scale teams in South Africa with speed and confidence. From employment contracts to payroll, statutory compliance, and advisory support, we manage it all — so you can focus on growth, not legal complexity. Whether you’re hiring one specialist or building an entire offshore team, we’re here to help you do it right.

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