What this hub answers
Three questions come up every time a South African business takes someone on. Which contract does the law expect? Is this person an employee or an independent contractor — for the CCMA and for SARS, which decide separately? And what are the minimum policies, registrations and documents a business of your size must have in place?
Each guide below answers one piece of that in plain English, with the Act’s own words in a box beside the rule so you can check it yourself. The four tools turn the guides into decisions: answer the questions the law actually asks, and get the instrument, the verdict or the register that follows — with the section behind every step.
Figures last reviewed 9 September 2026.
The two lines the law draws
Almost everything on this hub turns on two lines. The first is the earnings threshold — R269 600,90 a year from 1 May 2026. At or below it, the Labour Relations Act presumes a worker is an employee, limits fixed terms to three months without a written reason, and makes a labour-broker’s client the employer after three months. Above it, those protections switch off and hours and overtime become a matter of contract. The gauge at the top of this page shows which side a salary falls on.
The second is the line between an employee and an independent contractor. The Act defines an employee broadly and expressly excludes a contractor — without ever defining one. The courts decide it on the reality of the relationship, and the Code of Good Practice is blunt about labels.
“employee” means— (a) any person, excluding an independent contractor, who works for another person or for the State and who receives, or is entitled to receive, any remuneration; and (b) any other person who in any manner assists in carrying on or conducting the business of an employer
The presumption applies regardless of the form of the contract. Accordingly, a person applying the presumption must evaluate evidence concerning the actual nature of the employment relationship. The issue of the applicant’s employment status cannot be determined merely by reference to either the applicant’s obligations as stipulated in the contract or a “label” attached to the relationship in a contract. Therefore a statement in a contract that the applicant is not an employee or is an independent contractor must not be taken as conclusive proof of the status of the applicant.
Start with employee or independent contractor? and the earnings threshold.
The contracts, in one table
Ten kinds of engagement, each routed by a fact the law names. The which contract do I need? tool walks the same table for you.
| Contract | Use it when | The rule that governs it |
|---|---|---|
| Permanent employment contract | An ongoing role with no end date | Sixteen written particulars (BCEA s 29); probation set in advance |
| Fixed-term contract | A set period, task or event | Below the threshold, over three months only for a written justifiable reason (LRA s 198B) |
| Part-time or short-hours contract | Fewer hours than a full-timer, or under 24 hours a month | Equal treatment after three months (s 198C); under 24 hours most of the BCEA falls away |
| Labour-broker or secondment agreement | Someone else supplies and pays the worker | The broker is the employer; after three months below the threshold, you are (s 198A) |
| Learnership, apprenticeship or internship | Learning a trade or gaining experience | A registered tripartite agreement plus an employment contract; interns are paid workers |
| Independent contractor, freelancer or consultancy agreement | A defined result delivered on the person’s own account | Must survive the s 200A factors; copyright stays with the contractor unless assigned in writing |
| Director or executive service agreement | Board members and executives | Office and employment are separate; director pay needs a special resolution (Companies Act s 66) |
| Domestic worker contract | A household employer | Written particulars, R30,23 an hour, UIF and Compensation Fund registration |
| Foreign national | Any non-citizen | A valid visa before day one; a fixed term may match the permit; rights survive an expired permit |
| Commission, piece-work, seasonal or on-call | Output-based or irregular work | Lawful, but the minimum wage applies to ordinary hours and a short shift is paid as four hours |
Restraints of trade, confidentiality and intellectual property attach to almost any of these — see restraints, confidentiality and IP. Getting the routing wrong has a cost on both fronts — see getting it wrong.
The minimum policies
“Must a small business have HR policies?” has three different answers, and the honest register says which is which. Some things are required by law from the first employee: written particulars, R30,23 an hour at least, payslips, registration with SARS, the UIF and the Compensation Fund, the Employment Equity Act summary on the wall, an internal whistleblowing procedure, a registered information officer, a PAIA manual and a safe workplace. Some are effectively required because a Code of Good Practice makes them the only way to defend a claim — a harassment policy and disciplinary rules. The rest are recommended. Displays and registers start at five employees, safety representatives above 20, an employment equity plan at 50, the skills levy above R500 000 of payroll.
Read the minimum policies every business must have and registrations and returns, or build your own register with the minimum policies tool.
The tools
Each tool asks the questions the statute asks, shows the section beside each one, and never returns “unable to determine” — if the answer is borderline it tells you which facts would move it. Nothing you enter leaves your browser.
Which contract do I need?
Answer a few questions about the person, the pay, the period and the reason, and get the written instrument the law expects — with the clauses it must contain.
Use the toolInteractive toolEmployee or contractor? The test
Answer the seven statutory questions and the SARS questions and get two verdicts side by side — labour law and tax — with what would change each.
Use the toolInteractive toolSARS personal service provider test
Does your company or trust count as a personal service provider? Walk SARS’s own steps, see which limb bites, the withholding rate and the affidavit route.
Use the toolInteractive toolMinimum policies for my business
Enter your headcount, payroll and the kinds of people you engage, and get your register: what the law requires, what a Code effectively requires, and what is recommended.
Use the toolBefore you sign anything
Martin Kotze drafts and reviews every instrument on this hub at fixed fees, and advises on the status of an engagement before it becomes a dispute. Start with the contract selector, or see the employment and engagement agreements with their prices.