Navigating The Legal Responsibilities When Hiring Nannies Or Domestic Workers In South Africa

2. PAYE Tax Obligations:

Should your nanny or domestic worker earn above a specified threshold of yearly salary, that currently being R95 750 per annum, you must register as an employer with the South African Revenue Service (SARS) for Pay-As-You-Earn (PAYE) tax deductions. Non-compliance with PAYE tax obligations can result in penalties and legal repercussions, emphasising the necessity of adherence.

3. Employment Contract:

Crafting a comprehensive employment contract is paramount, one that aligns with South African labour laws, including the Labour Relations Act and the Basic Conditions of Employment Act (“BCEA”). Additionally, as we are dealing with nanny’s and/or domestic workers, compliance with Sectoral Determination 7 of the BCEA is essential, outlining specific conditions of employment for this sector. This contract should delineate crucial terms such as working hours, duties, remuneration, leave entitlements, termination procedures, and other pertinent provisions mandated by law, as well as other nuanced provisions that are specific to your situation.

4. Health and Safety Regulations:

Employers are tasked with providing a safe working environment for their employees, including nannies or domestic workers. This entails identifying and rectifying any health and safety hazards, offering necessary training, and ensuring compliance with relevant regulations to safeguard the well-being of all involved parties.

5. Leave Entitlements:

Recognizing and adhering to the leave entitlements of domestic workers is imperative. These encompass annual leave, sick leave, family responsibility leave and maternity leave, as stipulated in the BCEA and Sectoral Determination 7. Familiarising yourself with these entitlements, which should be included in the contract, and ensuring their implementation is crucial for legal compliance and fostering a supportive work environment.

6. Record-Keeping Requirements:

Employers are obligated to maintain accurate records of various employment aspects, including working hours, wages, leave taken, and other pertinent information. These records serve as crucial documentation, liable to be requested by labour inspectors or necessary for tax and compliance purposes.

Practical Example:

Let’s walk through a practical example to illustrate the importance of understanding and fulfilling legal responsibilities when hiring a nanny or domestic worker.
Imagine you’re a working parent living in Johannesburg. Your days are packed with meetings, deadlines, and the never-ending juggle of work and family life. With a toddler to care for and household chores piling up, you decide to hire a nanny to provide much-needed support.

After interviewing several candidates, you find the perfect fit—a warm, experienced nanny who instantly bonds with your child. Excited to have found the right person for the job, you’re eager to get started. But before diving in, it’s essential to consider the legal aspects of this employment relationship.

You realise that hiring a nanny means taking on the role of an employer, with legal obligations to fulfil. You diligently register your nanny for UIF and the Workman’s Compensation Fund, ensuring her financial security in case of unforeseen circumstances. You don’t want to have register for PAYE and deduct money from your nanny’s salary so you structure her contract in such a way that she falls below the threshold while still getting a good deal through providing her with additional benefits, while still complying with tax laws.

Next, you sit down to draft an employment contract—a roadmap for your working relationship. You outline clear expectations, including working hours, duties, remuneration, and leave entitlements. This contract not only protects your interests but also ensures fairness and transparency for your nanny.
As you welcome your nanny into your home, you’re mindful of health and safety regulations. You conduct a thorough assessment of potential hazards, provide necessary training, and implement safety measures to create a secure environment for both your nanny and child.

Months pass, and your nanny becomes an indispensable part of your family. When she falls ill and requests sick leave, you readily accommodate her, knowing it’s her right as an employee. You maintain meticulous records of her working hours, wages, and leave taken, staying organised and compliant with legal requirements.

Thanks to your proactive approach and adherence to legal responsibilities, your employment relationship thrives. Your home is a safe, supportive environment where both you and your nanny feel valued and respected.
In this example, understanding and fulfilling legal responsibilities lay the foundation for a positive and mutually beneficial employment relationship. By prioritising compliance and diligence, you ensure peace of mind for yourself and the well-being of your nanny.

Lay Law’s Expertise:

By embracing and fulfilling these legal requirements, employers can protect both their interests and those of their employees. At Lay Law, we specialise in navigating the intricacies of employment law, facilitating compliance, and mitigating risks associated with hiring nannies or domestic workers.

Our comprehensive services extend to drafting meticulous employment contracts, guiding employers through registration processes for UIF, Workman’s Compensation Fund, and PAYE tax (if necessary), providing record keeping templates like wage slips and leave registers and providing ongoing legal support to ensure sustained compliance and a harmonious employment relationship.

Conclusion:

In conclusion, hiring a nanny or domestic worker necessitates diligent adherence to legal responsibilities. By partnering with Lay Law, employers can navigate the complex legal landscape with confidence, ensuring compliance, mitigating risks, and fostering mutually beneficial employment relationships. Contact us today to learn more about how we can support you in navigating the legal intricacies of hiring nannies or domestic workers in South Africa.

Author | Richard Thompson