DRG, South Africa, Employer of Record Service Provider

DRG serves as a South African Employer of Record, assisting international companies in their hiring, administration and compliance of their local remote talent.

DRG assumes the burden of legal compliance, managing critical tasks like payroll administration, tax reporting to SARS, and mandatory social security contributions.

Beyond administrative support, DRG offers specialized immigration assistance for various work visas and provides workers with access to local medical aid and retirement schemes.

While DRG handles the administration and regulator complexities on behalf of the international employer, the international employer maintains direct control over their remote employees’ daily operations, performance and remuneration.

DRG’s service is designed to help global organisations scale efficiently by leveraging South African labour without the need to establish a local legal entity.

DRG provides expert support to ensure all in-country staffing administrative compliances and due process requirements, from probation to dismissals, are managed according to these South African statutes.

Your Gateway to South African Talent

DRG is a South African-based Employer of Record (EoR) service provider. We support international companies by managing the administration, compliance, and resourcing for their remote South African employees.

DRG assumes the burden of legal compliance, managing critical tasks like payroll administration, tax reporting to SARS, and mandatory social security contributions.

Our Mission: To help our clients achieve business growth and success by providing expert in-country EoR services and access to high-quality staffing resources.

 Compliant Growth: Engage individuals and teams legally without setting up a local legal juristic entity.

 25+ Years of Experience: Leverage our deep industry knowledge to manage talent conveniently and compliantly.

 Focus on Your Business: While DRG assumes the administrative burden, you remain in full charge of your employees’ daily operations and performance.

DRG provides expert support to ensure all in-country staffing administrative compliances and due process requirements, from probation to dismissals, are managed according to these South African statutes.

Beyond administrative support, DRG offers specialized immigration assistance for various work visas and provides workers with access to local medical aid and retirement schemes.

Comprehensive Employer of Record (EoR) Services

We handle critical in-country administrative and compliance tasks for remote employees whose employer is located outside of South Africa.

 Payroll & Tax Management: Effective payroll administration ensuring alignment with SARS PAYE tax legislation and reporting requirements.  Labour Law Adherence: Ensuring our clients employees meet all South African statutory legal compliances and social security responsibilities.

 Access to skilled professionals: Across all industries and job levels  Tailored benefit programmes. Including medical aid and retirement funds  Work visa facilitation: For international personnel entering South Africa and Africa.

 Social Security Contributions: We manage mandatory contributions, including:

o Unemployment Insurance Fund (UIF): Handling contributions and documentation for claims.

o Skills Development Levy (SDL): Managing compulsory payroll taxes for workforce development.

o Compensation Fund (COIDA): Maintaining compliance to cover workplace injuries and diseases.

o Public Liability Insurance (PL): Protection from financial losses due to claims of injury or property damage resulting from business

operations.

In using DRG’s EoR service, companies maintain control over their staff members daily operations, performance, and remuneration, while the DRG team handles legislative compliance and financial reporting complexities.

DRG’s expertise bridges the gap between the international demand and South African talent, while ensuring compliance for their clients remote working employees with local social security and statutory bodies. DRG’s services assist foreign businesses to efficiently scale effectiveness of their teams through the ability to engage South African workers with confidence.

World-Class Benefit Programmes

DRG provides optional access to localized insurance programmes tailored to fit your contractual obligations and your employees' needs.

 Medical Aid: Through our partnership with Discovery Health Medical Scheme, we offer 23 different plans, ranging from comprehensive to affordable coverage with unlimited private hospital cover.

 Retirement & Risk Management: Partnered with Liberty, we facilitate the Liberty Umbrella Provident Fund. This allows for tailored retirement contributions and group risk premiums, offering a range of investment portfolios to suit different organisational sizes.

 Remote Work Support: Guidance on specific work-from-home allowances for remote employees.

Employers can choose a combination of benefit structures to fit their contractual obligations, employee needs, and budget, by allowing their employees to easily plug into one or more of DRG’s benefit programmes. These solutions can be tailored to meet the employer’s requirements, or they can allow their employees to choose the solution which meets their needs based on their personal life circumstances.

Navigating Global Expansion

As an experienced immigration partner, we ensure foreign national employees receive the required legal status to work in South Africa or across the African Continent.

Visas We Support:

 Critical Skills Work Visa: For professions in IT, engineering, health, and finance.

 Section 11(2) Work Visa: For urgent, short-term project work (up to 90 days).  Intra-Company Transfer Visas: For moving specialized employees from overseas branches to South Africa.

 General Work Permits & Research Visas: Support for specialized skills not on the critical list and for academic research.

Find and Scale Exceptional Talent

DRG and our local partners link international organizations to skilled South African talent across all industries and position, and specialising in niche sectors like ICT, finance, engineering, sustainability, and governance.

 Talent Acquisition: Finding, screening, and placing candidates for permanent or contract positions.

 Flexibility: Quickly scale your teams up or down to meet project demands.

 Labour Law Support: We manage administrative compliances for probation, performance management, and terminations according to South African statutes.

While DRG handles the administration and regulator complexities on behalf of the international employer, the international employer maintains direct control over their remote employees’ daily operations, performance and remuneration.

South African Labour Standards

Navigating the South African employment landscape requires adherence to the Basic Conditions of Employment Act (BCEA) and Labour Relations Act (LRA). Below is a guide to statutory requirements for employees working in South Africa.

Working Hours and Overtime

 Standard Hours: The maximum ordinary working time is 45 hours per week (195 hours per month), excluding lunch breaks.

 Daily Limits: For employees working a five-day week, the limit is 9 hours per day; for those working more than five days, the limit is 8 hours per day.  Overtime Eligibility: Employees earning below the BCEA threshold (currently R 261,748.45 per year) are entitled to overtime pay.

 Overtime Limits & Pay: Overtime is capped at 10 hours per week and 3 hours per day. It must be compensated at 1.5 times the normal hourly rate, or through equivalent paid time off.

Comprehensive Leave Entitlements

 Annual Leave: Employees are entitled to 1.25 days of paid leave per month (for a 5-day work week) or 1.5 days (for a 6-day work week). Leave must generally be taken within six months of the end of the leave cycle, or it may be forfeited.

 Sick Leave: Within a three-year cycle, 5-day workers receive 30 paid sick days, while 6-day workers receive 36 days. A medical certificate is required for absences exceeding two days.

 Parental Leave: South Africa combines maternity and parental leave, offering a total of 4 months and 10 days of combined unpaid leave.

 Public Holidays: There are approximately 12 public holidays annually; if a holiday falls on a Sunday, the following Monday is observed as a public holiday.

Probationary Periods

 Duration: While South African law does not define a specific duration, probation must be reasonable and proportionate to the complexity of the job and clearly stipulated in the employment contract.

 Employer Responsibility: Employers are required to support employees during probation by providing regular feedback, addressing performance gaps proactively, and evaluating compatibility with the company.

Termination and Notice Periods

 Notice Requirements: Notice must be served in writing. The minimum notice periods are:

◦ One week for service of six months or less.

◦ Two weeks for service between six months and one year.

◦ Four weeks for service of one year or more.

 Due Process: Employers cannot terminate employment unilaterally, even in cases of serious misconduct or poor performance. Precise due processes, governed by statutes and case law, must be followed to ensure the termination is legally valid.

 Annual Leave Restriction: Annual leave may not be used to reduce a notice period.

Severance and Final Payments

 Severance Pay: In cases of operational requirements (retrenchment), employees are entitled to at least one week’s remuneration for every completed year of service.

 Final Settlement: All earnings due, including the payout of outstanding leave, must be paid within 7 days of the employee's last day of work.

DRG provides expert support to ensure all in-country staffing administrative compliances and due process requirements—from probation to dismissals—are managed according to these South African statutes.

Disclaimer: While DRG makes every effort to ensure accuracy, the reader acknowledges the complexity of labour law and that this information serves as a summary, not a legal liability.

Location and Team

Address: DRG Outsourcing (Pty) Ltd, Unit 12 Braehead Office Park, 1 Old Main Road, Kloof, 3610, KwaZulu-Natal, South Africa.

Telephone: +27 (0)31 767 0625 Website: www.drg.co.za

Our Leadership Team:

 David White (CEO): Marketing, networks, and collaborations — david@drg.co.za.

 Colette Tanner (COO): Payroll, operations, and due processes — colette@drg.co.za.

 Andrew Kruger (CFO): Financial administration and compliance — andrew@drg.co.za.

DRG, South Africa, Employer of Record Service Provider