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Employ Candidates Compliantly in South Africa

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  1. Overview: South Africa
  2. Expand without a company set up
  3. Global PEO and payroll
  4. Global HR Compliance
  5. Work permit for hiring expats via PEO
  6. Contractor vs. employee: which is better?
  7. Global Payroll Calculator
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Global Employer of Record in South Africa

Global Employer of Record (EOR)

A Global Employer of Record (EOR) is a service provider that allows companies to hire employees in foreign countries without establishing a legal entity in those jurisdictions. Essentially, the EOR serves as the legal employer for your international workers, handling tasks such as payroll, tax withholding, benefits administration, and compliance with local employment laws. This allows the client company to focus on their core business activities while expanding into new markets without the administrative burden of maintaining a local presence.

Difference Between an Employer of Record and a Global Employer of Record

While both an Employer of Record and a Global Employer of Record perform similar functions, the key difference is in their geographic scope. An Employer of Record typically operates within a single country or a specific jurisdiction, helping businesses with local employment needs. In contrast, a Global Employer of Record has the capacity to manage employment tasks across multiple countries, offering a single point of contact for global workforce management.

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Global Employment Services

Going global with your business can be tough, especially when hiring employees in other countries compliantly. The usual approach involves setting up a local company, which can be expensive, time-consuming, and complicated.

That’s where Express Global Employment comes in. Our Global Employer of Record service allows you to hire and pay workers in South Africa legally and easily without the hassle of setting up a local office. And we don’t stop there—our service includes compliance and legal guidance at every step of your global employment journey, backed by 24/7 local support. With us handling the complex legal details, you can focus entirely on what you do best—growing your business.

1. Recruitment

2. Global Mobility

3. Checks

4. Onboarding

5. Payroll Administration

6. Working Time & PTO Processing

7. Benefits Administration

8. Tax Administration & Reporting

Offboarding

Talent skilled in highly specialised areas Employee Work Visa and Work Permit sponsorship Health checks Employment Agreement drafting In-country registration with statutory bodies Working hours Mandatory Benefits Tax Reporting frequency and requirements; Employment agreement termination:
Executive search Dependent Visa Criminal record checks Compliant worker onboarding on your behalf Day-to-day payroll management Overtime Health insurance Employer taxes & contributions Dismissal – by the employer
Contingency workforce Visa extension Background checks Account setup in the payroll and HR system​ Monthly pay slips or other pay frequency Public holidays Workers’ compensation Employee taxes & contributions Resignation – by the employee
Application for a sponsor license for a foreign national Education checks Employee data entry and records maintenance Accruals Annual leave Unemployment insurance Withholding tax Termination by mutual agreement
Relocation assistance Managing probation periods Allowances Parental leave Voluntary Benefits Local tax payments and reporting to local authorities Notice period handling
13th and 14th salary Sick leave Share plans for executives End of financial year reporting Final settlement & severance payments
Additional leave Bonuses & Equipment provision De-registration with statutory bodies
Expenses reimbursement & business trip processing
Health insurance, dental treatment

12 Scenarios When You Might Need a Global Employer of Record

Navigating the complex terrain of international hiring can be a daunting task. The challenges are manifold, from grappling with local labour laws to ensuring tax compliance. Add to that the potential pitfalls of working with an inadequate service provider, and you’re in for a turbulent journey. Explore 12 scenarios where a Global Employer of Record (Global EOR) can be your strategic ally. Whether you’re an NGO, a scaling startup, or an established enterprise, discover how a Global EOR can help you focus on your core business while efficiently managing international hiring complexities.

Scenario Description
Unhappiness with Current Provider You have hired an employee but are unhappy with your current service provider and looking for better options.
Contractor Compliance You have decided to hire an independent contractor instead of a full-time employee, and you need help ensuring compliance with local labour, tax, and immigration laws.
Quality Improvement You seek to enhance the quality of employment services while avoiding the risk and hassle of dealing with multiple service providers in different jurisdictions.
Budget Constraints Your company can no longer afford to maintain a fully-fledged legal operation in the target country and needs a more cost-effective solution.
Temporary Projects You have a temporary or short-term project in a foreign country that does not warrant setting up a full legal entity.
Hiring Foreign Workforce You need to hire a foreign workforce for a new international project and ensure legal compliance.
Business Transitions Your company is undergoing a business transition such as mergers, acquisitions, or shutdowns, and you want to ensure smooth and compliant employee transitions.
NGO Staffing You are an NGO that needs to hire professionals in different locations across the globe quickly.
Interim Employment Solution You are in the process of establishing a legal entity in a foreign country but need an interim solution for hiring and payroll.
Scaling up Operations Your company is rapidly growing and needs to hire in countries where you don’t have an established presence yet.
Remote Work Expansion You want to leverage the global talent pool by enabling remote work, but you need help with the employment regulations in each worker’s country.
Reducing Legal Liability Your company wants to reduce potential legal liabilities related to international employment and seeks expert assistance.

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Avoid Permanent Establishment Risk in South Africa

Permanent Establishment Risk refers to the potential tax liability and legal obligations that arise when a company unintentionally establishes a taxable presence in a foreign country due to certain business activities. This could occur through activities such as having a physical office, a dependent agent, or even specific business activities that surpass a certain threshold. These situations can trigger various tax obligations, including corporate income tax and VAT, and can lead to significant legal and financial implications.

A Global Employer of Record (EOR) is critical in mitigating this risk. By hiring and managing employees on your behalf, a Global EOR can maintain the necessary degree of separation between your business activities and the indicators of a PE. They can ensure that the activities of your employees align with local laws and do not inadvertently lead to the creation of a PE.

Moreover, a Global EOR’s knowledge of international tax laws and double taxation agreements can be instrumental in navigating the complexities of global operations. They can provide invaluable advice and strategies to structure your business activities to minimise PE risk.

In addition, a Global EOR is responsible for managing local compliance, payroll, tax reporting, and benefits, ensuring your business does not inadvertently cross the thresholds that would create a PE.

Global EOR Solutions in South Africa

Express Global Employment offers an all-inclusive Global PEO and Payroll solution designed to manage every facet of international payroll while ensuring full compliance with South Africa’s labour and taxation laws. As a leading provider of Global Employer of Record (EOR) services, we specialize in enabling businesses to legally engage and compensate local and expatriate employees in South Africa without establishing a local entity.

Our services extend beyond mere compliance. We are strategic partners in your Global HR operations, offering talent acquisition and retention expertise, risk-free global expansion, and dedicated local support for international clients. We serve as an extension of your HR department, facilitating the entire employment lifecycle from recruitment to payroll.

Our EOR service is an efficient, cost-effective alternative to direct hiring, providing companies with the legal scaffolding to operate in South Africa and in 190 international markets. We take care of the intricacies of employment law, from work permits and visa sponsorships for expatriate teams to onboarding local citizens. We focus on mitigating compliance risks, allowing you to concentrate solely on your business growth and operational objectives.

Entrust your global employment and HR needs to Express Global Employment. Our expertise assures you full compliance with the local and international employment laws, reducing risks as you expand your business globally.

Spotlight on South Africa

South  Africa  is the southern tip of the continent of Africa. It is bounded to the south by 2,798 kilometres  of coastline of Southern Africa stretching along the South Atlantic and Indian Oceans; to the north by the neighbouring countries of Namibia, Botswana, and Zimbabwe; and to the east and northeast by Mozambique and Eswatini (former Swaziland); and it surrounds the enclaved country of Lesotho.

  • Capital: South Africa has three capitals: executive Pretoria, judicial Bloemfontein and legislative Cape Town.
  • Local currency: South African rand (ZAR).
  • Most developing industries: South Africa is rich in mineral resources. The country is the world’s largest producer and exporter of gold, platinum, chrome and manganese, the second largest palladium producer and the fourth largest producer of diamonds. Coal is vital as an energy source and contributes significantly to the economy by generating export revenue and employment. Africa has diverse manufacturing industries and is a world leader in several specialized sectors, including railway rolling stock, synthetic fuels, mining equipment and machinery.

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