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How to Hire Employees Legally (2026)

Complete guide to hiring employees legally in South Africa for 2026. Learn employment law requirements, employment contracts, registration obligations, and how to hire employees in compliance with labour laws.

Business Law Expert
May 17, 2026
13 min read
How to Hire Employees Legally (2026)

How to Hire Employees Legally (2026)

Hiring employees in South Africa requires compliance with employment and labour laws. Understanding employment law requirements, registration obligations, and employment contracts helps you hire employees legally and maintain compliance. This comprehensive 2026 guide covers everything you need to know about hiring employees legally.

Employment Law Requirements

Legal Framework

Key Legislation:

  • Basic Conditions of Employment Act
  • Labour Relations Act
  • Employment Equity Act
  • Skills Development Act
  • Occupational Health and Safety Act

Employer Obligations:

  • Register for PAYE
  • Register for UIF
  • Register for COIDA
  • Register for SDL (if applicable)
  • Comply with employment laws

Registration Requirements

Before Hiring

Must Register For:

  • PAYE: Register with SARS
  • UIF: Register with Department of Labour
  • COIDA: Register with Compensation Fund
  • SDL: Register if payroll exceeds R500,000

Registration Timeline:

  • Register before hiring employees
  • Complete registrations promptly
  • Maintain registrations
  • Update as needed

Employment Contracts

Contract Requirements

Employment Contract Must Include:

  • Job title and description
  • Remuneration and benefits
  • Working hours
  • Leave entitlements
  • Notice periods
  • Termination conditions
  • Other terms and conditions

Contract Types:

  • Permanent employment
  • Fixed-term contracts
  • Part-time employment
  • Temporary employment
  • Independent contractors

Employment Equity

Equity Requirements

Employment Equity Act:

  • Promote workplace equity
  • Eliminate unfair discrimination
  • Ensure equal opportunities
  • Report to Department of Labour (if applicable)

Requirements:

  • Employment equity plan (if applicable)
  • Annual reporting (if applicable)
  • Equal opportunities
  • Non-discrimination

Minimum Wage

Wage Requirements

National Minimum Wage (2026):

  • General: R27.58 per hour
  • Farm Workers: R27.58 per hour
  • Domestic Workers: R27.58 per hour
  • Expanded Public Works: R15.00 per hour

Important:

  • Pay at least minimum wage
  • Check sectoral determinations
  • Comply with wage laws
  • Review wage rates regularly

Leave Entitlements

Employee Leave

Annual Leave:

  • 21 consecutive days per year
  • Or 15 working days
  • Accrues during employment
  • Must be taken

Sick Leave:

  • 30 days per 3-year cycle
  • Paid sick leave
  • Medical certificate may be required
  • Unused days accumulate

Maternity Leave:

  • 4 months unpaid leave
  • Can claim UIF maternity benefits
  • Job protection
  • Return to work rights

Health and Safety

OHS Requirements

Occupational Health and Safety:

  • Provide safe working environment
  • Comply with OHS Act
  • Train employees on safety
  • Maintain safety standards
  • Report accidents

Tips for Hiring

Best Practices

  1. Register First: Register for PAYE, UIF, COIDA before hiring
  2. Use Contracts: Provide written employment contracts
  3. Comply with Laws: Follow all employment laws
  4. Pay Minimum Wage: Pay at least minimum wage
  5. Provide Benefits: Offer required benefits
  6. Maintain Records: Keep employment records

Frequently Asked Questions

What registrations do I need before hiring employees?

Before hiring, register for PAYE with SARS, UIF with Department of Labour, COIDA with Compensation Fund, and SDL with SARS if payroll exceeds R500,000 annually.

Do I need written employment contracts?

While not always legally required, written employment contracts are highly recommended. They clarify terms, protect both parties, and help prevent disputes.

What is the minimum wage in 2026?

National minimum wage is R27.58 per hour in 2026 for most workers. Some sectors have different rates. Check applicable rates for your industry.

What leave are employees entitled to?

Employees are entitled to: 21 days annual leave, 30 days sick leave per 3-year cycle, 4 months maternity leave, and public holidays. Check specific entitlements.

What are my health and safety obligations?

Employers must provide safe working environment, comply with Occupational Health and Safety Act, train employees on safety, maintain safety standards, and report workplace accidents.

Conclusion

Hiring employees legally requires registering for PAYE, UIF, and COIDA before hiring, providing written employment contracts, complying with employment laws, paying at least minimum wage (R27.58/hour in 2026), providing required leave entitlements, ensuring health and safety compliance, and maintaining employment records. Understand all requirements, register before hiring, use proper contracts, and comply with all employment laws. Understanding legal hiring requirements helps you hire employees legally and maintain compliance with South African labour laws.

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About the Author
Business Law Expert

Business Law Expert

Specializing in South African business registration, CIPC compliance, tax requirements, BEE certification, and business law with extensive knowledge of company registration processes.