Employer of Record in Eswatini

An Employer of Record (EOR) in Eswatini is a company that legally hires employees on your behalf. This means you can build a team in Eswatini without setting up a local entity. The EOR takes care of all the formal employment tasks, acting as the legal employer for your staff. They handle everything from payroll and taxes to benefits and compliance with local labor laws. This allows you to focus on your business while the EOR manages the human resources functions. For companies looking to expand into Eswatini, an EOR like Rivermate provides a straightforward way to hire talent.

How an Employer of Record (EOR) Works in Eswatini

Using an EOR in Eswatini simplifies the process of hiring employees. Here is how it typically works:

• You Find the Talent: You identify the candidates you want to hire in Eswatini.
• The EOR Hires Them: The EOR legally hires the employees under their own local business entity. They handle all the necessary paperwork.
• Compliant Contracts: The EOR drafts and manages employment contracts that comply with Eswatini's labor laws. Contracts must be in writing, in either English or Swazi, and provided to the employee within 60 days of their start date.
• Onboarding: The EOR onboards your new team members, ensuring all legal requirements are met.
• Payroll and Benefits: The EOR manages payroll, ensuring your employees are paid on time and accurately. They also handle all statutory benefits, such as contributions to the National Provident Fund, paid leave, and sick leave, as required by the Employment Act of Eswatini.
• Ongoing HR Support: The EOR provides continuous HR support, managing any employee-related issues that may arise.

Why use an Employer of Record in Eswatini

Using an EOR in Eswatini offers a practical solution for businesses that want to hire local talent without the complexities of establishing a legal presence in the country. It provides a fast and low-risk way to enter the market or expand your team.

Here are some key reasons to use an EOR:

• Avoid Setting Up a Local Entity: You can hire employees in Eswatini without the time and expense of registering a local company.
• Ensure Compliance: EORs are experts in local labor laws and tax regulations. They ensure that your hiring practices are fully compliant, minimizing legal risks.
• Simplify Payroll and HR: The EOR handles all aspects of payroll, tax deductions, and benefits administration. This saves you from navigating complex local systems.
• Faster Market Entry: An EOR allows you to hire and onboard employees much faster than if you were to set up your own entity.
• Access to Expertise: You gain access to local HR and legal experts who can provide guidance on employment matters in Eswatini.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Eswatini includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Eswatini.

Hiring in Eswatini requires understanding its unique employment landscape. The workforce is a blend of traditional and modern practices, and the government is actively encouraging foreign investment. While there are opportunities, it's important to be aware of challenges like skills shortages in certain sectors.

Employment contracts & must-have clauses

When you hire employees in Eswatini, you must provide a written employment contract. You can use either indefinite or fixed-term contracts. Make sure all contracts are in the local language and use the Swazi lilangeni for salary and compensation amounts.

Your employment contracts must include these key clauses:

• Full names of you and your employee
• Job title and a brief description of duties
• Start date of employment
• Place of work
• Working hours
• Salary details, including payment frequency and method
• Leave entitlements for annual, sick, and other leave types
• Notice period for termination
• Any relevant collective agreements

Probation periods

You can include a probation period in your employment contracts. This period allows you to assess a new employee's suitability for the role.

• A typical probation period is up to three months.
• For employees in supervisory, technical, or confidential roles, you can agree to a longer probation period in writing.
• During the probation period, either you or the employee can terminate the contract with a shorter notice period.

Working hours & overtime

Standard working hours in Eswatini are typically 8 hours a day and 40 hours a week. Any work done beyond these hours is considered overtime.

Public & regional holidays

Your employees are entitled to paid leave on public holidays. Here are the public holidays in Eswatini for 2024:

• Jan 1 - New Year's Day
• Mar 29 - Good Friday
• Apr 1 - Easter Monday
• Apr 19 - King's Birthday
• Apr 25 - National Flag Day
• May 1 - Labour Day
• May 9 - Ascension Day
• Jul 22 - King Father's Birthday
• Sep 2 - Umhlanga
• Sep 6 - Somhlolo Day
• Dec 18 - Incwala
• Dec 25 - Christmas Day
• Dec 26 - Boxing Day

Hiring contractors in Eswatini

You can hire independent contractors in Eswatini for project-based work. This can give you flexibility and access to specialized skills. However, it's crucial to classify workers correctly.

Misclassifying an employee as an independent contractor can lead to serious consequences. You could face fines, back taxes, and be required to pay for employee benefits. The authorities will look at the actual working relationship, not just the contract.

An Employer of Record (EOR) can help you avoid these risks. An EOR acts as the legal employer for your workers in Eswatini. They handle employment contracts, payroll, taxes, and benefits, ensuring you comply with all local labor laws. This lets you focus on your business while the EOR manages the complexities of local employment.

In Eswatini, managing compensation and payroll means understanding local rules and practices. You need to pay your team correctly and on time while following the country's labor and tax laws. This involves everything from running a monthly payroll to making the right deductions for taxes and social security. Staying compliant is key to supporting your employees and keeping your business running smoothly.

Payroll cycles & wage structure

In Eswatini, the standard payroll cycle is monthly. Most businesses pay their employees once a month, usually at the end of the month. While some contracts might specify weekly or bi-weekly payments, monthly pay is the norm for salaried staff.

Your employees must receive a payslip with each payment. This document should clearly show their gross salary, any deductions like taxes, and their final net pay. Payments are typically made by direct bank transfer.

Overtime & minimums

When employees work beyond their standard hours, they are entitled to overtime pay. The overtime rate is at least 1.5 times their normal wage. For work done on a designated rest day, the rate increases to 200% of the regular pay.

Eswatini's minimum wage varies by the employee's role and sector. For example, different minimums are set for domestic workers, unskilled workers, and skilled workers. These rates are reviewed and adjusted periodically.

Employer taxes and contributions

As an employer in Eswatini, you are responsible for contributing to the national retirement fund and administering the employee income tax system. You must calculate and withhold the correct taxes from your employees' salaries.

Employee taxes and deductions

Employees in Eswatini contribute to the national provident fund and pay income tax based on their earnings. These deductions are withheld by the employer from their monthly salary.

Understanding the landscape of employee benefits and leave in Eswatini is straightforward. The country has clear laws that outline the minimum support you must provide for your team. This includes various types of leave and contributions to the national provident fund. Offering more than the minimum can help you attract and keep great talent.

Statutory leave

Eswatini's laws set out the basic leave entitlements for employees.

• Annual Leave: Employees are entitled to a minimum of 15 working days of paid annual leave per year.
• Sick Leave: Employees can take paid sick leave if they provide a valid medical certificate. They are entitled to 10 days of paid sick leave annually.
• Maternity Leave: Female employees get 12 weeks of maternity leave. At least six of these weeks are to be taken after the birth. For an employee to be eligible for two weeks of paid maternity leave, they must have worked for you for at least a year.
• Paternity Leave: Fathers are entitled to 3 days of paid paternity leave after a child is born.

Public holidays & regional holidays

Your employees are entitled to a paid day off for Eswatini's public holidays. If they work on a public holiday, you must pay them double their normal rate.

Typical supplemental benefits

To build a competitive benefits package, you can offer more than the legally required minimums.

How an EOR can help with setting up benefits

Setting up a benefits plan in a new country can be complex. An Employer of Record (EOR) simplifies this process for you. Instead of needing to establish your own local entity, an EOR allows you to hire and manage employees in Eswatini quickly.

An EOR helps you:

• Stay Compliant: An EOR ensures your benefits packages meet all of Eswatini's legal requirements.
• Save Time: You avoid the lengthy process of setting up a legal entity in the country.
• Attract Talent: An EOR can help you create a competitive benefits package that goes beyond the minimums to attract and retain top employees.

When an employment relationship in Eswatini ends, you need to follow a clear process. This ensures you treat your employees fairly and stay on the right side of the law. The country's labor laws outline specific steps for termination and offboarding. Following these rules is not just about compliance; it helps you maintain a positive reputation. The process involves providing adequate notice, calculating final payments correctly, and handling all the necessary paperwork.

Notice periods

Giving proper notice is a key part of the termination process. The amount of notice you need to give depends on how long the employee has worked for you.

Here are the minimum notice periods required by law:

• Less than 6 months of service: 1 week.
• 6 to 12 months of service: 2 weeks.
• More than 1 year of service: 1 month.

Keep in mind that an employment contract can specify a longer notice period. If it does, you must follow the contract. You must give the notice in writing. In some cases, you can pay the employee in lieu of notice.

Severance pay

Employees who have worked for you for at least one year are usually entitled to severance pay. You are not required to pay severance if the termination is due to serious misconduct by the employee.

The standard calculation for severance is 10 working days' wages for each full year of service after the first year.

How Rivermate handles compliant exits

At Rivermate, we manage the entire offboarding process for you. We make sure everything is handled correctly and in compliance with Eswatini's labor laws.

Here’s how we help:

• Compliance check: We review every termination to ensure it follows the legal requirements for notice periods and severance pay.
• Documentation: We prepare all the necessary termination documents, including the final payslip.
• Final payment: We calculate and process all final payments, including outstanding salary, unused leave, and severance.
• Clear communication: We help you communicate the termination process clearly to your employee to avoid misunderstandings.

Our goal is to make the exit process smooth and professional for both you and your employee. We handle the details so you can focus on your business.

Getting the right visas and work permits in Eswatini is essential for your team. The process involves specific steps and requirements set by the Eswatini government. All foreign nationals who want to work in the country need to get a work permit before they start their job. This permit is tied to a specific employer and job.

Employment visas & sponsorship realities

In Eswatini, there isn't a separate "work visa". Instead, international employees need to apply for a temporary residence permit, which includes the right to work. This permit is what's commonly called a work permit.

Here’s what you need to know about the process:

• Job Offer First: You must have a job offer from a company in Eswatini before you can apply for a work permit.
• Employer's Role: The employer in Eswatini needs to provide a cover letter and other company documents for the application.
• Local Hiring Efforts: The employer must show that they tried to fill the position with a local candidate first.
• Application Submission: You apply for the work permit from your home country and wait for approval before traveling to Eswatini.
• Processing Time: It can take up to two months to prepare the application and get all the necessary documents, like police clearances. The actual processing of the permit can take between 7 to 30 working days.

An Employer of Record (EOR) can help you navigate this process. They can act as the legal employer in Eswatini and sponsor the necessary work permits for your international employees. This simplifies your expansion into the country.

Business travel compliance

For short-term visits like business meetings, you will need an entry visa. This visa is for activities that are not considered work.

Key points for business travel:

• Purpose of Visit: Entry visas are for tourism, business meetings, visiting family, or medical treatment.
• Duration: These visas are typically granted for up to 90 days.
• No Work Allowed: You cannot perform work on an entry visa. For any paid employment, a work permit is required.

It's important to understand the difference between a short-term business visit and actual work to stay compliant with Eswatini's immigration laws.