Employer of Record (EOR) – South Africa

Welcome to DNA EOR

DNA focuses on providing end-to-end Employer of Record services in the Republic of South Africa. This clear industry and geographical focus allow us to be the best in our field. We provide EOR services for global businesses from across the world and in all industries in South Africa.

What is an Employer of Record (EOR)?

An EOR is a company who employs people on behalf of global businesses in a foreign country – in our case South Africa. The EOR is the legal employer and is responsible for all employment, HR, Payroll, tax, labour, and compliance related issues.

DNA EOR is therefore legally obligated to comply to all company, tax, labour, HR and other statutory regulations specific to South Africa.

EOR is still a new concept and one that is being adopted by more global businesses every day. The “New World of Work” has radically increased the growth of the Global EOR industry and this growth trajectory is expected to continue for many years.

Why use EOR?

Access to Top International Talent

The Covid pandemic has opened the world’s eyes to the benefits of remote working. It has also made businesses realize that they can access the best talent anywhere in the world. EOR is the cryptocurrency of Global Hiring – it allows global businesses to transcend borders and hire the world’s best talent without being constrained by legalities. It has become apparent that cultural diversity in teams play a major role in creative processes and team dynamics, hence the strength of global teams.

Reduced Costs of Global Expansion

It costs much less to use an EOR than to set up your own entity. Setting up your own legal entity in a foreign country involves extensive professional fees for lawyers, accountants and other professionals. Using an EOR therefore assists in managing the costs of Global Expansion, whilst reducing risk.

Testing New Markets

When businesses want to test new geographical markets without making a long-term bet, then EOR makes a lot of sense. EOR contracts can be cancelled on short notice if things don’t work out. EOR is therefore the perfect tool to use when “dipping your toes” into new geographies and markets.

When Time to Market is Important

Businesses sometimes have limited time to appoint people in foreign countries. This could be for a variety of reasons – securing top talent, commercial opportunities and so on. It can take many months to set up a legal entity in a foreign country, and by then the talent or the opportunity might be lost.

Managing Legal Risk of Compliance

Global businesses are often averse to legal and compliance risks of foreign countries that are unfamiliar to them. An EOR takes the compliance risk away from the global business whilst giving them full access to a new market. It keeps global expansion goals on track and reduces the legal risks that go with expansion. Non-compliance to local laws and regulations can result in significant penalties.

hort-term projects

If a global business intends to operate in a foreign country for a limited time or for a very specific project with a clear end date, then setting up a legal entity and incurring all the associated costs make no sense. An EOR can on-board and off-board full-time employees as well as local contractors on behalf of a global business - at a fraction of the cost and in much less time.

Employee Engagement Experience

When hiring people in a foreign country, you want to provide an excellent Employee Engagement Experience - from signing contracts, on-boarding, attractive employee benefits and easy access to Payroll and HR information. You want to project the right image and elevate your brand as a Global Employer. DNA EOR’s cloud employee portal gives foreign employees access to all the information they require from any device. They also have access to a dedicated HR advisor for any HR, Payroll and benefits related assistance.

Why the Republic South Africa has become a popular EOR destination?

Low Cost of Skilled Employment
South Africa has a good literacy rate with many people acquiring tertiary qualifications (college and university degrees) after high school. Combined with an extremely high unemployment rate (34% official unemployment rate), makes South Africa a perfect low-cost labour market for global businesses.

Time Zones and Language

South Africa’s time zones coincide with most European countries. This bodes well for global European businesses who are looking to access low-cost labour markets. South Africa’s official business language is English. The South African English accent is also regarded as “neutral” and easy to understand. This is especially relevant for call-centres.

Work Ethic
The South African work ethic is well regarded world-wide. South Africans are generally regarded as intelligent, hard-working individuals who take pride in their work.