The DTI and the National Treasury carry out regular assessments of current incentives which are removed or improved accordingly, indicating pro-active treatment of the schemes. Immigration, Employment and Local Content The Labour Relations Act ( LRA ), the Employment Equity Act ( EEA ) and the Basic Conditions of Employment Act ( BCEA ) are some of the statues that govern labour law in South Africa: • The LRA aims to advance economic development, social justice, labour peace and the democracy of the workplace. • The EEA protects workers and job seekers from unfair discrimination, and also provides a framework for implementing affirmative action. • The BCEA regulates leave, working hours, employment contracts, deductions and termination. A business visa may be issued by the Director-General of the Department of Home Affairs to an expatriate intending to establish or invest in, or who has established or invested in, a business in South Africa in which they may be employed. A visa may be issued to the expatriate’s immediate family if the expatriate invests the prescribed financial or capital contribution in the business and such contribution forms part of the intended book value of that business. Currently, the financial contribution stands at South Africa Rand ( ZAR ) 5,000,000 (approximately USD 350,000) and the capital contribution requirement is new machinery and/or equipment. A person entering the country on a business visa must undertake to comply with relevant registration requirements set out by the South African Revenue Service (SARS). They must employ the prescribed percentage or number of citizens within a period of 12 months from the date that the visa is issued. Currently, a person issued with a business visa must ensure that at least 60% of his or her employees are South African citizens or permanent residents. The LRA regulates employment law in South Africa. In terms of the LRA an employer must have a fair and justifiable reason for dismissing an employee. An employer is generally entitled to dismiss an employee (i) if it is just and fair to dismiss him or her by virtue of serious misconduct; or (ii) physical incapacity of the employee; or (iii) sexual harassment of a co-employee; or (iv) if his or her conduct constitutes a material breach of
the employment contract; or (v) when it appears that the relationship of trust between the parties has broken down irretrievably; or (vi) dismissals based on the employer’s operational requirements (retrenchments); and (vii) the prescribed procedural requirements have been complied with. In terms of the LRA, every employee has the right not to be unfairly dismissed and subjected to unfair labour practice. The dismissed employee or the employee alleging the unfair labour practice may refer its dispute in writing to the Commission for Conciliation, Mediation and Arbitration (CCMA) The CCMA is an independent authority aimed at promoting fair practices in the work environment by resolving labour disputes and providing advice and training on labour relations. Real Estate South African property law provides for and recognises a plethora of rights in respect of real estate, including freehold title, sectional title, and long lease. Further, there is generally no restriction in respect of the holder of such rights, which may be held by a natural person, partnership, company, close corporation, trust, association, or any other recognised entity. Save for some formalities contained in various laws, including the Alienation of Land Act 68 of 1969 and the Occupational Health and Safety Act 85 of 1993, South African law does not prescribe the form or content of an agreement of sale of land. All disposals of immovable property are subject to transfer duty or value-added tax. Notably, however, transferring ownership or limited real rights over land requires the registration of a deed under the Deeds Registries Act 47 of 1937, and the registration process necessitates attorneys who have qualified as conveyancers. While there is no restriction on foreign investors acquiring property in South Africa, ownership by foreign legal entities is subject to certain restrictions, notably those contained in the Act. This legislation provides that foreign companies wishing to acquire property in South Africa must register as an external company (a branch) in terms of that Act. A withholding amount is payable by the purchaser of the foreign owned immovable property to the SARS pending determination of the tax liability of the non-resident seller to the SARS. . Treaty relief may, however, be available dependent on any extant treaties between South Africa and the jurisdiction of the foreign company.
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