Payment of Skills Development Levies and Unemployment Insurance Fund Contributions:
It is essential to clarify the payment obligations related to Skills Development Levies and Unemployment Insurance Fund contributions for digital nomads. Ensuring compliance with these requirements is crucial for employers. For a comprehensive understanding of the tax issues, we recommend reading our third article in the series.
External Company Registration Obligation:
If your foreign employees are working in South Africa on digital nomad visas, it’s important to determine whether an external company registration obligation is triggered under the Companies Act, 2008. Specifically, consider whether the foreign employer can be regarded as “conducting business” in South Africa, as defined by Section 23 of the Act. Seeking professional advice on this matter is advisable.
Applicability of South African Employment Laws:
Conducting a thorough analysis of the circumstances surrounding remote working arrangements is essential to determine if South African employment laws apply to remote workers while they are in the country. It’s worth noting that all foreign employees, even those without valid working visas, are entitled to legal protection under the Labour Relations Act, 1995, as amended. Understanding the extent of legal obligations is crucial for employers to ensure compliance and protect both the rights of their employees and the interests of their organization.
Stay informed and make informed decisions. As always, seeking legal advice specific to your situation is recommended to address any unique circumstances and ensure compliance with applicable laws and regulations.
