South African Labour Law Basics: Contracts, Minimum Wage and Dismissal

Whether you work in South Africa or employ staff, you need to know the minimum wage, working hours and leave, UIF, dismissal procedures and the CCMA.

Last checked:

South African labour law gives employees strong protection, and it applies to foreign workers too. As of October 2026 the national minimum wage is R30.23 an hour and ordinary hours are capped at 45 a week. Employers must pay UIF contributions. A dismissal needs a fair reason and a fair procedure, and if it lacks either, the employee can take the case to the CCMA free of charge.

Business partners shaking hands after signing a contract – South African labour law
Business partners shaking hands after signing a contract. Photo: Vitaly Gariev / Unsplash

The main laws and who they cover

  • Basic Conditions of Employment Act (BCEA): minimum standards for hours, overtime, leave and notice.
  • Labour Relations Act (LRA): dismissal, unions, disputes and the CCMA.
  • National Minimum Wage Act: the minimum wage, adjusted every year.
  • Unemployment Insurance Act and COIDA: UIF and injury-on-duty cover.

These laws cover all employees whatever their nationality. They apply to Chinese companies and Chinese-owned shops hiring local staff, and to Chinese employers hiring Chinese staff. The BCEA rules on hours and overtime do not apply to employees above the earnings threshold, which is R269,600.90 a year from 1 May 2026.

Employment contracts

When an employee starts, the employer must give them written particulars of employment. These cover at least the job, working hours, pay and how it is paid, leave and the notice period. A proper contract is better. A bilingual Chinese–English version is useful, as long as it states which language prevails. Probation is allowed but must be reasonable, and dismissal during probation still needs a reason and a fair process.

Minimum wage (from 1 March 2026)

Category Minimum per hour
General workers (including farm and domestic workers) R30.23
Expanded Public Works Programme (EPWP) R16.62
Learnership agreements Separate schedule

At 45 hours a week, a full-time minimum salary is roughly R5,900 a month. The same floor applies to a nanny at home or a helper in your shop.

Hours, overtime and leave

  • Hours: a maximum of 45 ordinary hours a week, and no more than 9 hours a day on a five-day week.
  • Overtime: only by agreement, usually no more than 10 hours a week, paid at least 1.5 times the normal rate. Higher rates apply to work on Sundays and public holidays.
  • Annual leave: 21 consecutive days of paid leave a year, which is about 15 working days.
  • Sick leave: paid sick leave equal to six weeks of working days in each 36-month cycle, which is 30 days on a five-day week.
  • Family responsibility leave: 3 days a year, for example when a child is ill or a close relative dies.
  • Parental leave: on 3 October 2025 the Constitutional Court ruled in the Van Wyk case that, until Parliament amends the law, two working parents share four months and ten days of parental leave. A single parent, or a parent whose partner does not work, gets at least four months. Employers do not have to pay for this leave, but employees can claim partial benefits from UIF.

UIF and injury cover

Employers and employees each pay 1% of pay, declared and paid monthly to SARS on the EMP201. Contributions are calculated on earnings of up to R17,712 a month, so the most each side pays is R177.12. Employers who are not registered with SARS for PAYE, such as a household employing one domestic worker, register through the Department of Employment and Labour’s uFiling system. Employees can claim UIF benefits for unemployment, illness and maternity. Employers must also register with the Compensation Fund for injury cover, which the employer pays for. For PAYE, see our personal income tax guide.

Dismissal: reasons, procedure and notice

There are only three fair grounds for dismissal: misconduct (such as theft or serious breaches of rules), incapacity (poor performance or ill health) and operational requirements (retrenchment). The reason alone is not enough. The procedure must also be fair: tell the employee, give them a chance to respond, hold a disciplinary hearing where needed, and keep written records.

Length of service Minimum notice
6 months or less 1 week
More than 6 months, up to 1 year 2 weeks
More than 1 year 4 weeks

For retrenchments, the employer must also pay severance of at least one week’s pay for each completed year of service.

The CCMA: handling disputes

The CCMA (Commission for Conciliation, Mediation and Arbitration) handles labour disputes free of charge. An unfair dismissal claim must be referred within 30 days of the dismissal. Unfair labour practice claims generally have a 90-day limit. Cases usually go to conciliation first and then to arbitration if that fails, and arbitration awards are binding. When Chinese employers lose, it is usually because they skipped the procedure or kept no written evidence, not because they had no reason.

Common mistakes by Chinese employers and employees

  • Expecting routine unpaid overtime “like back home”: this is unlawful, and staff can claim overtime pay.
  • Verbal agreements, cash wages and no payslips: if a dispute arises, the employer will struggle to prove its case.
  • Keeping staff passports or ID documents: this is unlawful.
  • Hiring foreigners without the right to work: the employer breaks immigration law. See our work visa guide.
  • Unpaid or summarily dismissed workers often don’t know about the CCMA: referral is free and you can ask for an interpreter.

If you are job hunting, see finding a job in South Africa, and browse our Work section for more.

FAQ

Are foreign employees protected by South African labour law?

Yes. Labour law applies to the employment relationship, not to nationality. The minimum wage applies whether or not a worker is documented, but working without the right to work carries separate immigration risks.

Can I dismiss someone at any time during probation?

No. A dismissal during probation still needs a reasonable reason, and the employee must get a chance to improve and to respond.

How much notice must an employee give when resigning?

The same minimum periods apply: 1, 2 or 4 weeks. A contract can set a longer period, but it cannot require the employee to give more notice than the employer must give.

Do I need to pay UIF for a domestic worker?

Yes. Domestic workers who work more than 24 hours a month must be registered for UIF, and they must be paid at least R30.23 an hour.

Sources