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With the exception of certain exceptions, independent contractors do not receive “remuneration” as defined and the withholding obligation in the Fourth Annex does not apply. Independent contractors are not entitled to any of the above-mentioned minimum statutory employment rights, unless the contractor in the field of health and safety, although they are not considered “workers” under the Health and Safety Act, nevertheless imposes on them the general obligations that are due by law to persons other than workers. The operator must manage his activity in such a way as to reasonably ensure that persons other than his employees, who may be directly concerned by the activities of the client, are not exposed to risks to their health or safety. Employers need to understand exactly how the law defines “a worker.” Many employers sit smiling and mistakenly think that not everyone who works for them is an employee – so the employer has managed to get around the law. “They are not employees – they are all independent contractors! A trade restriction clause can never be inserted into a genuine agreement of independent contractors – it is simply unenforceable. You can`t stop your plumber, painter or electrician from taking over other work or removing business buildings that are facing you. Therefore, if you want the nature of the contract to be that of a true independent contractor, you cannot insert a trade restriction clause. There is no specific national legislation governing self-employed contractors or an independent employment relationship. General civil, commercial and social laws apply. Posting of workers Posting of workers is a recognised practice in South Africa and can be carried out on the basis of an agreement between the worker, his employer and the company to which he is posted. Depending on the specific circumstances of the posting, this may lead the worker to be qualified as a worker of both employers participating in the posting. Vat registration Self-employed contractors who operate a “business” within the meaning of the VAT Act 89 of 1991 (“Value Added Tax”) may be required to register for VAT purposes in South Africa. The VAT registration obligation is generally imposed when the “company” has taxable income (consisting of a standard and zero service) worth more than 1 million per year.

Our unique table at the end of the agreement allows you to adapt the agreement for each independent contractor/subcontractor you come across. The simple table allows you to adapt: South African labour law protects workers and many aspects of the employer-employee relationship are governed by collective agreements in highly unionised sectors. As already stated, the BCEA regulates the basic terms and conditions of employment and has a direct impact on what can be provided for in employment contracts (in sectors where a sectoral provision has been adopted or where there is a bargaining council under sectoral collective agreements, these instruments will continue to govern what may be provided for in employment contracts in these sectors). The LRA also provides for substantive regulations for the termination of the employment relationship and employment contracts, whether the employment contract is for an indefinite or indefinite period, as well as the protection of unfair labour practices of workers. Payment/compensation agreements. When payments or allowances are paid regularly and regularly (e.g. .