Hiring staff brings new responsibilities. This guide walks you through employment law, payroll, UIF, COIDA and employee record keeping.
Employment contracts, payroll, UIF, COIDA and staff records should be handled properly from day one.
Understand the Basic Conditions of Employment Act before hiring staff.
Gather employee information, prepare employment contracts, create personnel files and ensure all onboarding documents are completed before the employee starts work.
Explore this step →Set up employee salaries, deductions, payslips, leave tracking and payroll records before your first payday.
Register with SARS and the Department of Employment and Labour for PAYE, UIF and other employer obligations.
Explore this step →Download practical templates, policies, forms and procedures to help manage your employees correctly.
Explore this step →Understand notice periods, final pay, leave payouts, UIF documentation and employee exit procedures.
Explore this step →The Basic Conditions of Employment Act (BCEA) sets the minimum legal standards for working conditions, leave and pay in South Africa.
Employers cannot contract out of these minimum rights. Any employment contract offering less favourable terms than the BCEA may be unenforceable.
Employers should maintain accurate leave records from the first day of employment.
Employees earning above the BCEA earnings threshold are excluded from certain automatic protections relating mainly to working time, overtime, meal intervals and premium pay.
The threshold increased to R269,600.90 per year from 1 May 2026. This figure should be reviewed regularly as it may change.
Hiring an employee creates legal obligations immediately.
Put employment contracts, leave records, payroll setup and employee files in place before the employee starts, not after the first payday.
Hiring your first employee is an exciting step, but the correct documents, payroll details and employee records should be in place before the employee starts work.
The first day is not the day to collect paperwork.
Employment contracts, payroll information and employee records should ideally be completed before the employee starts work. Proper onboarding reduces disputes, simplifies payroll administration and helps ensure compliance with labour legislation.
Payroll is more than simply paying employees. Employers are responsible for calculating salaries, deductions, leave balances and statutory contributions accurately.
Payroll mistakes are one of the quickest ways to create problems with employees and SARS.
A properly maintained payroll system helps ensure accurate payslips, correct tax calculations, leave tracking and compliance with UIF and PAYE obligations.
Once you start employing staff, various registrations may become necessary depending on your payroll and business activities.
Understanding which registrations apply to your business will help ensure compliance and avoid penalties or interest.
Employers who employ staff for more than 24 hours per month are generally required to register for UIF.
Employers who are required to deduct Employees' Tax from remuneration must register for PAYE with SARS.
SDL is a levy used to fund skills development and training initiatives in South Africa.
Employers below the R500,000 threshold are generally exempt from SDL.
Most employers are required to register with the Compensation Fund in terms of the Compensation for Occupational Injuries and Diseases Act (COIDA).
Different registrations fall under different government departments.
Registered employers must submit bi-annual employer reconciliations to SARS.
Many employers assume UIF registration alone is sufficient.
Depending on employee earnings and payroll size, employers may also have obligations relating to PAYE, SDL, EMP201 submissions, EMP501 reconciliations and IRP5 certificates. SDL is often overlooked by growing businesses, particularly once annual payroll exceeds R500,000.
Practical templates, policies and checklists to help employers establish proper employment practices and maintain compliance.
Templates are only effective when properly implemented and maintained.
Employment contracts, disciplinary procedures and workplace policies should be reviewed regularly to ensure they remain compliant with current legislation and reflect the way your business actually operates.
Guardian is currently developing a comprehensive employer resource library containing downloadable contracts, policies, disciplinary procedures, checklists and practical HR templates.
When employment comes to an end, employers must ensure that the correct procedures are followed and that all required payroll and employment documents are issued.
Employers are generally required to provide a Certificate of Service when employment ends.
Most disputes arise after employment ends, not while the employee is working.
Keeping accurate payroll records, leave records, disciplinary records and employment contracts throughout the employment relationship will make the termination process significantly easier and help protect both the employer and employee.