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ISSUE 4
Converting independ contractors into full-time employees in Africa
By Grant Geraghty
Independent contractors are increasingly popular in Africa, driven by workers seeking flexibility and companies needing diverse talent. However, working with contractors comes with risks, including navigating country-specific labour regulations and tax laws. Let’s explore these risks and why converting contractors into full-time employees may be a worthwhile consideration.
Independent contractor v employee The distinction between an independent contractor and an employee is critical, as it has significant legal and regulatory implications across Africa. Worker misclassification— when an independent contractor performs duties more aligned with an employee—can result in fines, back pay, and reputational damage.
Each country has specific criteria for determining worker classification. In South Africa, for instance, independent contractors must meet several conditions, such as being a resident, not acting as a labor broker, working independently, and fulfilling tax obligations to the South African Revenue Authority.
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