Read up on local employment laws or partner with a provider who understands them deeply, especially those regarding leave (BCEA in SA), working hours, and termination protocols. 2. Choose your setup: Entity vs. EOR Establishing a legal entity in South Africa can take months and cost thousands. If you’re just hiring a few people, consider an EOR partner instead. They’ll employ your team on your behalf, legally, quickly, and with all the compliance boxes ticked. We’ve onboarded remote hires in as little as 48 hours. And yes, we’ve also handled laptops, office furniture, and broadband setup.
legally and compliantly in countries where they don’t have an entity. The EOR becomes the legal employer, handling payroll, tax, and labour law, while the business manages the day-to-day. This isn’t a loophole. It’s a bridge, and it’s working - not just for cost reasons but also for values-aligned global hiring. The Real ‘Exploitation’? Inaction or Improvisation What’s truly exploitative is this: hiring someone as a “freelancer” when they’re working full-time hours, taking direction like an employee, but getting none of the benefits or protections. That’s illegal in many countries. And in South Africa, it could trigger investigations, back pay, tax liabilities, and reputational damage. Furthermore, it hurts the company and erodes trust with the person you hired, and potentially your other team members.
We’re talking about ethical hiring, and being compliant isn’t a “I wonder if we should”, it is a “we must do this” situation. Which brings us to the practical side. A Practical Guide for Hiring Right, Not Just Cheap Here’s how global companies can hire talent in South Africa or similar markets, and do it in a fair, compliant, and sustainable way. 1. Understand your obligations If someone works only for your company, during specific hours, under your direction, they’re not a contractor. They’re an employee. Hiring them as an “independent” to cut costs can backfire.
This isn’t a loophole. It’s a bridge, and it’s working - not just for cost reasons but also for values-aligned global hiring.
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ISSUE 15 GLOBAL PAYROLL MAGAZINE
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