04:05 AFRICA
The Multi- Country Puzzle Operating in one African country can be challenging; operating across several multiplies the difficulty. Leaders face overlapping requirements in areas such as: Labour law : Nigeria mandates notice periods, while South Africa enforces collective bargaining frameworks. Contracts : Some countries require specific language or clauses; others stipulate dispute-resolution methods. Termination : Employment is rarely “at will.” Statutory severance and court- enforced protections are common. The risks are not minor. business licences, frozen bank accounts, or even personal liability for directors. Missteps can result in fines, suspended Taxation : Payroll deductions, social security rules, and personal income tax vary widely.
The risks are not minor. Missteps can result in fines, suspended business licences, frozen bank accounts, or even personal liability for directors.
Why Africa Is Distinct
fail outright in Ghana or Egypt. Recognising these differences is the first step to avoiding costly surprises. Risks That Escalate Quickly Non-compliance doesn’t just cause paperwork contractors without proper structures can trigger unexpected tax liabilities. Payroll discrepancies : Currency swings or statutory changes lead to inaccurate payments. Reputational damage : In a climate of ESG reporting, labour delays. It creates cascading risks: Permanent Establishment exposure : Hiring
Executives often assume that lessons from Europe or North America will travel. They usually don’t. Three dynamics shape Africa’s regulatory environment: 1. Constantly evolving legislation: Labour codes, tax systems, and data privacy laws are being rewritten and digitalised across the continent. 2.Uneven enforcement: South Africa’s labour courts pursue strict compliance, while other jurisdictions prioritise revenue through penalties. 3.Local primacy: Regional blocs encourage trade, but employment law remains stubbornly national. A framework that works in Kenya may
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GLOBAL PAYROLL MAGAZINE ISSUE 16
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