"One-Day Casual Labor in South Africa: A Step-by-Step Guide to Legal Compliance"

 




Scenario: An employer, John, picked up three casual laborers from the side of the road to assist with some construction work at his farm for the day. 

These workers were hired on a verbal agreement and paid in cash. No formal documentation was signed, and they weren’t registered as employees. 

The laborers were not given any induction or training related to safety protocols, nor were they provided with personal protective equipment (PPE) such as hard hats or safety harnesses, even though they were working at heights.

While one of the laborers, Peter, was standing on a ladder painting the upper part of a building, the ladder slipped, causing him to fall and break his arm and leg. There was no first-aid kit on-site, and no formal procedure to handle such accidents.

Employer's Responsibilities:

  1. Induction and Safety Training: The employer has a legal obligation to provide all employees, including casual laborers, with an induction before starting work.

  2.  This induction should cover essential safety rules, the use of safety equipment, and hazard identification. John failed in this regard by not informing the workers of safety risks or how to prevent accidents, particularly in a high-risk activity like working at heights.

  3. Providing Safety Gear: John was also responsible for supplying personal protective equipment (PPE), such as helmets, gloves, and safety harnesses, given the nature of the job. Failure to do so put Peter and the other laborers at significant risk. The employer must ensure the availability of PPE and that workers are trained to use it correctly.

  4. Registration and Employment Contracts: By not formally registering the casual workers or providing employment contracts, John bypassed the legal requirements for employment, including health insurance or compensation benefits for injuries. Casual or day laborers are still entitled to certain rights under labor laws, including protection in case of workplace accidents.

  5. Workplace Health and Safety Compliance: The Occupational Health and Safety Act (OHSA) or its equivalent in the respective country requires employers to maintain a safe working environment. 

  6. The absence of basic safety protocols, such as ensuring the ladder was secured or having a safe work method in place, means John did not comply with these regulations.

  7. Reporting the Incident: After Peter’s accident, John is required to report the incident to the relevant authorities, such as the labor department or an occupational health and safety board. Failure to report workplace injuries can lead to fines or other legal consequences.

Rights and Responsibilities for the Injured Employee:

  1. Medical Assistance: Peter, as the injured worker, has the right to receive immediate medical treatment. It is John’s responsibility to ensure that Peter gets medical help and, under the law, the employer may be liable for the costs of this treatment.

  2. Compensation for Injury: Peter may be entitled to compensation under workers' compensation laws (or a similar system). 

  3. This applies even to casual laborers in many jurisdictions. If John had registered his workers under a compensation fund, Peter could claim compensation for lost wages, medical costs, and rehabilitation.

  4.  However, since Peter wasn’t formally registered, he may need to pursue legal avenues to claim compensation from John directly.

  5. Legal Action: If Peter cannot get compensation through a formal compensation fund, he may choose to file a civil claim against John for negligence. Since the injury occurred due to unsafe working conditions (lack of safety gear, induction, and training), Peter could argue that John’s failure to provide a safe work environment led to his injury, making him liable for damages.




Consequences for the Employer:

  • Fines and Penalties:
    John could face significant penalties for failing to meet legal obligations, such as neglecting to provide safety gear, failing to register the workers, and not reporting the injury.

  • Civil Liability:
    If Peter sues for negligence, John may be required to compensate him for pain and suffering, lost income, and medical expenses.

  • Damage to Reputation:
    Even if this was a one-day hire, accidents like this can harm John’s reputation and possibly lead to investigations by labor and safety authorities.

Conclusion:

This situation highlights the employer’s legal and moral responsibilities, even for casual or temporary workers.

 Peter’s injury could have been prevented with basic safety precautions, and now John faces potential legal consequences due to non-compliance with labor and safety laws. It is crucial that all employers, regardless of the type of employment, ensure a safe working environment for all workers.


To legally register a casual worker for one day under South African law, there are specific steps and requirements to follow, even if the employment is temporary. Here’s a guide for compliance with South African labor laws:

1. Create a Written Agreement (Optional but Recommended)

While South African labor law does not mandate a written contract for casual work, it’s advisable to create a simple written agreement for clarity. This should outline:

  • The type of work to be performed
  • The daily wage rate
  • The work hours (start and end time)
  • Payment method (cash, bank transfer, etc.)
  • Safety obligations

Having this document ensures transparency and protects both parties.

2. Registration for Workers' Compensation (COIDA)

Under the Compensation for Occupational Injuries and Diseases Act (COIDA), all employers must register their employees for workers' compensation. This includes casual workers, even if they are hired for just one day.

Steps to ensure COIDA compliance:

  • If your business is already registered with the Compensation Fund, the casual worker will automatically be covered.

  • If not, you must register your business with the Compensation Fund through the Department of Employment and Labour before hiring any workers. This ensures that the casual worker will be covered in case of injury or illness caused by work.

To register for COIDA:

  1. Fill out and submit the W.As.2 (Employer Registration Form) on the Department of Employment and Labour website.
  2. Provide details about your business, type of work, and expected payroll.
  3. Pay the assessment fee that will be calculated based on your payroll.

3. Unemployment Insurance Fund (UIF)

For casual workers, the Unemployment Insurance Fund (UIF) rules depend on the number of hours worked. According to the law, workers must be registered for UIF if they work more than 24 hours in a month.

Since the worker is employed for only one day, and if their total working hours do not exceed 24 hours in the month, you do not need to register them for UIF.

However, if you intend to rehire the worker on additional days and they exceed 24 hours in a month, you would need to register them for UIF.

4. Pay-As-You-Earn (PAYE) Tax

If the casual worker’s daily wage exceeds the threshold for taxation, you are required to withhold Pay-As-You-Earn (PAYE) tax. 

However, for most casual workers who are paid below the monthly tax threshold, this may not apply.

2024 tax threshold:

  • If the worker earns more than R95,750 annually (which is around R7,979 per month), you would need to withhold PAYE.

For a single day’s work, it’s unlikely the casual worker will exceed the daily wage threshold for PAYE.

5. Provide Safety Induction and PPE (Occupational Health and Safety Act - OHSA)

Even for one day, you are legally required under the Occupational Health and Safety Act (OHSA) to ensure a safe working environment. This includes:

  • Conducting a safety induction to inform the worker of potential hazards.
  • Providing necessary Personal Protective Equipment (PPE) such as helmets, gloves, or safety boots if the job involves physical risk.
  • Ensuring that the worker follows all safety procedures relevant to the task.

Failure to comply with these safety obligations can lead to legal liability if the worker is injured.

6. Payment and Record Keeping

Even though the worker is casual and hired for one day, it’s essential to:

  • Pay the agreed daily wage on time (typically at the end of the day).
  • Maintain records of employment, including the written agreement (if any) and proof of payment, in case of future disputes or audits.

Steps Summary

  1. Create a written agreement for the day's work (optional but recommended).
  2. Ensure your business is registered with the Compensation Fund (COIDA).
  3. No need for UIF registration for a one-day hire unless the worker exceeds 24 hours in a month.
  4. Withhold PAYE tax only if the worker’s earnings exceed the tax threshold.
  5. Provide a safety induction and any required PPE as per OHSA requirements.
  6. Ensure prompt payment and maintain employment records.

By following these steps, you ensure that you comply with South African labor laws while protecting both yourself and the casual worker for the day.

Les


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