04:05
ISSUE 4
a full-fledged employee holds: more control over how, when, and where work is done, owning the intellectual property of all work produced, avoiding unexpected costs associated with independent contractors, and being able to care for your employee to the full extent of the law. If you would like to have a business presence in Africa, but do not have an entity, an EOR solution may be the most suitable option for you. In both the short and long terms, EORs mitigate risks, taking on the full burden of compliance and major HR tasks such as payroll – all with the goal of supporting your business growth in Africa.
But as a company looking to grow in Africa, your time and resources are far better spent on the expanding business than on classifying employees correctly. This is why many companies without an entity in Africa choose to partner with an EOR (Employer of Record). This legal entity provides many services within one solution: employee onboarding, payroll, legal compliance, expert knowledge, risk mitigation, operational efficiency, and more. But companies need to choose the right EOR: one that possesses African expertise, and a deep understanding of the local labour laws across Africa’s diverse countries. 3. Long-Term Planning Workforce management is not a one- time task. It is a continuous process, one that must be carefully monitored for fear of one day being found misclassifying a worker, for instance. As such, partnering with a specialized partner like an EOR may be the most suitable solution for companies in Africa. Converting independent contractors into employees: the takeaways If you are choosing to work with an independent contractor in Africa, it is necessary to consider the risks that accompany this decision. From misclassification, which is a legal offence, to the financial risks incurred when workers are misclassified, all the way to the operational issues met because independent contractors cannot be told how, when, or where to work.
Author: Grant Geraghty
Grant Geraghty, Head of Client Relationships @ Africa HR Solutions, is a seasoned HR operations and payroll compliance expert with a focus on the African market. He holds a Bachelor of Commerce in Economics and Business Finance from the University of Natal, South Africa, and a certification in Payroll and Tax Administration from the University of Cape Town. With his meticulous approach and deep understanding of local regulations across Africa, Grant has built a reputation for helping organizations optimise their African expansion strategies.
Conversely, it is also worth noting the many advantages that a transition to
Made with FlippingBook - Online magazine maker