# Employment migration in South Africa

Identify whether the move is a business transfer, a temporary-employment-service arrangement or a new direct employment relationship. Employment-law status and payroll-tax treatment require their own checks.

- Canonical: [Read this publication online](<https://eormigration.com/countries/south-africa>)
- Author: [Heddle](<https://eormigration.com/editorial#heddle>)
- Published: 2026-10-01
- Modified: 2026-10-02
- Sources checked: 2026-10-01
- Scope: South Africa

<a id="short-answer"></a>

## The short answer

Establish whether the move is a business transfer, a temporary employment service or a new direct employment relationship. Assess the applicable employment protections and client responsibilities separately from payroll-tax registrations, terms and any visa conditions.

<a id="peo-context"></a>

## Where PEO fits

Ask what the proposed PEO or EOR service is under South African law. Temporary employment services and deemed-employer provisions can affect the client's responsibilities; do not import a US co-employment assumption.

<a id="section-197-transfer"></a>

## Assess whether section 197 applies

Determine whether a business or service is being transferred as a going concern. If section 197 applies, document the treatment of employment contracts, continuity, accrued rights and liabilities. A change of service provider alone is not enough to assume that it does.

**Sources**

- [South African Government — Labour Relations Act 66 of 1995](<https://www.gov.za/documents/labour-relations-act>)
- [Constitutional Court — Aviation Union of South Africa v South African Airways: judgment summary](<https://www.gov.za/news/media-statements/aviation-union-south-africa-and-another-v-south-african-airways-pty-ltd-and>)
- [South African Government — Putco section 197 application](<https://www.gov.za/news/media-statements/mec-ismail-vadi-welcomes-labour-court-judgement-putco%E2%80%99s-section-197>)

<a id="temporary-employment-services"></a>

## Review temporary employment service and client responsibilities

Check whether the arrangement is a temporary employment service and whether sections 198 and 198A apply. The statutory protections depend on the worker and arrangement, including the applicable earnings threshold and temporary-service rules. Confirm responsibility rather than accepting a blanket provider liability promise.

**Sources**

- [CCMA — Labour Relations Act, sections 198 and 198A](<https://www.ccma.org.za/wp-content/uploads/2022/01/LABOUR_RELATIONS_ACT_NO._66_OF_1995.pdf>)
- [Department of Employment and Labour — Constitutional Court ruling on labour brokers](<https://www.gov.za/news/media-statements/labour-welcomes-constitutional-court-ruling-labour-brokers-27-jul-2018>)

<a id="contractor-status"></a>

## Assess contractor status from the relationship

Review control, integration and economic dependence under the applicable employment-law test, alongside SARS employees-tax treatment. Contract wording alone does not settle employment status. Record the assessment and investigate past periods separately from future onboarding.

**Sources**

- [CCMA — Employee v Independent Contractor](<https://www.ccma.org.za/wp-content/uploads/2022/02/Employee-V-Independent-Contractor-2018-01.pdf>)
- [SARS — Guide for Employers in Respect of Employees' Tax (2027)](<https://www.sars.gov.za/guide-for-employers-in-respect-of-employees-tax-2027/>)

<a id="paye-uif-sdl"></a>

## Confirm PAYE, UIF and SDL readiness

Check which registrations and contributions apply to the receiving employer, including PAYE, UIF and SDL. Allocate final deductions, returns and reconciliations, and update registered particulars when needed. Use the relevant exemptions and rules rather than one assumed contribution package.

**Sources**

- [SARS — Registering for Employees' Tax (PAYE)](<https://www.sars.gov.za/types-of-tax/pay-as-you-earn/registering/>)
- [SARS — Guide for Employers in Respect of Employees' Tax (2027)](<https://www.sars.gov.za/guide-for-employers-in-respect-of-employees-tax-2027/>)

<a id="employment-terms"></a>

## Map employment terms and applicable sector rules

Identify the relevant bargaining council, collective agreement and basic employment conditions. Reconcile pay, leave and benefit commitments before documenting the new arrangement. Where a TES is involved, check client exposure for applicable employment-standard breaches.

**Sources**

- [CCMA — Basic Conditions of Employment Act, including section 82](<https://www.ccma.org.za/wp-content/uploads/2022/01/BASIC_CONDITIONS_OF_EMPLOYMENT_ACT_NO._75_OF_1997.pdf>)
- [CCMA — Labour Relations Act, section 198](<https://www.ccma.org.za/wp-content/uploads/2022/01/LABOUR_RELATIONS_ACT_NO._66_OF_1995.pdf>)

<a id="visa-conditions"></a>

## Review visa conditions and employer undertakings

For sponsored foreign nationals, check the visa category, named employer and any change-of-condition process before setting a transfer date. DHA's general-work-visa requirements include employer undertakings and notification when employment or the role changes.

**Sources**

- [Department of Home Affairs — General Work Visa requirements, effective 9 October 2024](<https://www.dha.gov.za/images/notices/8october24/General_Work_Visa_requirements_-_8_Oct_2028.pdf>)

<a id="section-197-provider-change"></a>

## Does changing service provider automatically trigger section 197?

No. Determine whether a business or service is being transferred as a going concern. If section 197 applies, document employment contracts, continuity, accrued rights and liabilities; a provider change alone is not enough to assume it applies.

**Sources**

- [Supporting source](<https://www.gov.za/documents/labour-relations-act>)
- [Supporting source](<https://www.gov.za/news/media-statements/aviation-union-south-africa-and-another-v-south-african-airways-pty-ltd-and>)
- [Supporting source](<https://www.gov.za/news/media-statements/mec-ismail-vadi-welcomes-labour-court-judgement-putco%E2%80%99s-section-197>)

<a id="tes-client-responsibility"></a>

## Does a temporary employment service take all responsibility from the client?

Do not rely on a blanket liability promise. Check whether sections 198 and 198A apply to the worker and arrangement, including the relevant earnings threshold and temporary-service rules, and confirm the client’s responsibilities.

**Sources**

- [Supporting source](<https://www.ccma.org.za/wp-content/uploads/2022/01/LABOUR_RELATIONS_ACT_NO._66_OF_1995.pdf>)
- [Supporting source](<https://www.gov.za/news/media-statements/labour-welcomes-constitutional-court-ruling-labour-brokers-27-jul-2018>)

<a id="payroll-registrations"></a>

## Which payroll registrations should the receiving employer check?

Check which PAYE, UIF and SDL registrations and contributions apply, including relevant exemptions. Allocate final deductions, returns and reconciliations, and update registered particulars where needed; do not assume one contribution package fits every arrangement.

**Sources**

- [Supporting source](<https://www.sars.gov.za/types-of-tax/pay-as-you-earn/registering/>)
- [Supporting source](<https://www.sars.gov.za/guide-for-employers-in-respect-of-employees-tax-2027/>)

<a id="guide-scope"></a>

## Planning scope

Record an owner, required evidence and readiness date for each of these points before agreeing the cutover. Legal applicability depends on the actual arrangement; this guide is planning information, not a legal opinion.

<a id="related-publications"></a>

## Related publications

- [Migration routes](<https://eormigration.com/routes>)
- [Provider comparison](<https://eormigration.com/providers>)