South Africa

Employment Contracts

An employment contract in South Africa can be either for an indefinite term or a fixed term. Employers must provide the employee with a document containing at least the details of the parties, a brief description of the job, position, working hours, wage particularities, leave, notice period, and if for a fixed term, the date of completion. The document must be in a language in which the employee can understand. Otherwise, the employer must explain its terms and conditions in a manner that the employee can understand correctly.

Fixed-term contracts are not designed for permanent positions. Fixed-term contracts are usually for work that is for a specific period of time necessary to perform the temporary needs of the business, such as for a specified event or the completion of a specified task or project.

Public Holidays

The following holidays are observed in South Africa:

• New Year’s Day
• Human Rights Day
• Good Friday
• Family Day
• Freedom Day
• Workers Day
• Youth Day
• National Women’s Day
• Heritage Day
• Day of Reconciliation
• Christmas Day
• Day of Goodwill

Public holidays that fall on a Sunday rolls over to the following Monday.

Compensation

There is no statutory requirement for an employer to pay bonuses. Payment of bonuses can arise from the contract, custom or by the discretion of the employer.

Working Hours

The standard work is 45 hours a week and nine hours a day for five or fewer days in a week. For employees working more than five days a week, the limit is eight hours a day. It may be extended up to 15 minutes in a day but not more than 60 minutes in a week for employees whose duties include working with the public.

Vacation Leave

In addition to holidays, employees receive 21 days a year of paid vacation leave. By an agreement, the benefit can be one day for every 17 days worked, or one hour for every 17 hours worked. An employer must give an additional day of paid leave if a public holiday falls on a day during an employee’s annual leave. The annual leave must be paid before the starting date.

Sick Leave

During each 36-month cycle, an employee is entitled to paid sick leave equal to the number of days they work in six weeks. If they work five days per week, their entitlement every 36 months is 30 days of paid sick leave. If they work six days per week, their entitlement is 36 days of paid sick leave. During the first six months, employees receive one day of sick leave for every 26 days of work.

Maternity / Paternity Leave

A female employee receives four months of paid maternity leave. Unless otherwise agreed, it begins one month before the birth, or on the date indicated in a medical certificate. The employee is prohibited from returning to work within six weeks of the birth unless a medical practitioner certifies otherwise. The remuneration is subject to contributions to UIF (Unemployment Insurance Fund).

Fathers and adopting parents are now entitled to 10 days unpaid parental leave when their children are born. The father must submit at least one calendar month’s written notice before the leave.

Employment Termination / Severance

The notice period is between one and three months and increases with each year of service.

Health Insurance Benefits

Usually, employers offer private insurance to their employees in addition to the public insurance system. A National Health Insurance will be introduced by 2025 and will likely require an employer contribution.