An employer of record (EOR) works by splitting one job into two roles. The EOR becomes the legal employer in the worker's country. It signs the local contract, runs payroll and pays the local taxes. You, the UK business, choose the person and manage their daily work.
For a UK company hiring in South Africa, the process runs in ten stages. You write the brief, the candidates are found and vetted, and an offer is made. Then come the contract, onboarding and the first payslip, followed by ongoing HR, leave and, one day, offboarding. This guide walks through each stage, who leads it and how long it tends to take. Tax and employment points differ from case to case, so check your own plans with a qualified adviser.
How does an employer of record work? The short version
An EOR set up has two separate agreements. Flink's own explainer on what an employer of record is and when UK businesses need one puts it this way. The first agreement is a commercial services agreement between your company and the EOR. It sets out the services, the fees and the notice terms.
The second agreement is a normal employment contract between the EOR and the worker, under local law. So the worker is a full employee in South Africa, with local rights. You are the client. You lead the work and judge the results.
That split is the whole idea. You get a team member without opening a South African company. The EOR carries the local employer duties. If you want the UK angle in more depth, see what an EOR is from the UK point of view. If you are weighing an EOR against a professional employer organisation, our guide to EOR vs PEO for UK businesses sets out the difference.
Who does what
| Task | You (the UK client) | The EOR |
|---|---|---|
| Decide the role and budget | Yes | Advises |
| Find and test candidates | Choose the final person | Sources and vets, if it also recruits |
| Employment contract | Agree the terms | Issues and signs it under local law |
| Register as an employer in South Africa | No | Yes, it is already registered |
| Monthly payroll and tax | Pay the EOR invoice | Runs payroll and pays SARS |
| Daily work, goals and reviews | Yes | Supports with HR |
| Leave records | Approves time off day to day | Keeps the legal record |
| Ending employment | Makes the business decision | Runs the legal process |
The ten stages at a glance
The table below shows each stage and the time it takes. Some timings are set by law. Others depend on you, the role and the market, so we have not put a number on them. Flink says that many clients onboard their new hire within a few weeks, from start to finish.
| Stage | Who leads | What happens | Timing |
|---|---|---|---|
| 1. Brief | You | Define outputs, hours, skills and budget | Depends on you |
| 2. Sourcing | EOR or recruiter | Find and shortlist people | Depends on the role |
| 3. Vetting | EOR or recruiter, then you | Interviews, tests, references | Depends on the role |
| 4. Offer | You and the EOR | Agree pay, start date and notice | Depends on the candidate |
| 5. Contract | EOR | Written terms under South African law | Before day one |
| 6. Onboarding | EOR and you | Laptop, accounts, first week plan | Before and during week one |
| 7. Payroll | EOR | Pay, deductions, payslip, SARS return | Monthly, return due by the 7th* |
| 8. Ongoing HR | You and the EOR | Reviews, issues, changes | For as long as they work for you |
| 9. Leave | You and the EOR | Annual, sick and other leave | Through the year |
| 10. Offboarding | EOR, with you | Notice, final pay, certificate | Notice of 1 to 4 weeks* by law |
Stage 1: Write the brief
Everything starts with a clear brief. This is your job, and no EOR can do it for you. A weak brief leads to a weak shortlist.
A good brief answers a few plain questions. What will this person produce each week? Which hours must overlap with your UK team? Which tools will they use? How will you judge success after three months? What can you afford to pay?
Write the outputs first, then the skills. "Answer 40 support emails a day to our standard" is clearer than "good communicator". If you are hiring a technical role, the brief needs more detail. See our guides on how to hire software developers in South Africa and how to hire a remote SEO specialist and check they are any good for role specific tips.
Also decide your budget with the full cost in mind. The salary is only part of it. Read what South African employer costs add up to before you set a number.
Stage 2: Source candidates
Next, someone has to find people. Some EORs only employ. They expect you to find the candidate yourself, then hand them over. Others, like Flink, also recruit.
If your EOR does not recruit, you will need job boards, referrals or a local recruiter. That adds a step, and a second supplier to manage. If your EOR does recruit, ask how it finds people and how many it will put in front of you.
The time this takes depends on the role. A common admin role is often quicker to fill than a senior specialist role. Be wary of anyone who promises a fixed number of days for every role.
Stage 3: Vet the shortlist
Vetting is where good hires are made. At Flink, candidates go through video interviews, psychometric tests and reference checks before you meet them. You then interview the shortlist yourself and choose.
Whoever runs it, a sound vetting stage usually covers these points:
- Skills. A short, relevant task or test that matches the real work.
- Communication. A video call to check how clearly they speak and write in English.
- Working set up. A stable internet connection and a quiet place to work.
- Track record. At least one reference from a past manager.
Keep your own interview structured. Ask each person the same questions and score the answers. It makes the final choice fairer and easier to explain.
Stage 4: Make the offer
Once you choose, the offer goes out. With an EOR, you agree the pay and start date with the EOR first. The EOR then makes the offer in its own name, because it will be the employer.
Agree these points before the offer goes out:
- Monthly salary, in rand, and any benefits.
- Start date and normal working hours.
- Notice terms and any trial period.
- What equipment the person will get.
Under South African law, the employer must pay workers in South African money, with a payslip. So the salary in the offer should be in rand, even if the EOR bills you in pounds. Ask the EOR how it handles exchange rates on your invoice.
Stage 5: The employment contract
The EOR now issues the contract. This is the legal heart of the set up. The worker signs with the EOR, not with you.
South African law requires the employer to give new workers written details of their job and working conditions. The Western Cape Government's summary of the Basic Conditions of Employment Act (BCEA) says this includes all the terms of employment and a list of related documents. The contract should also cover notice, leave, working hours and who owns the work the person creates.
You will not usually sign the employment contract. But you should read it, or at least a sample. Check it matches what you agreed. Our guide to what must go into a remote employment contract for South African staff has a full list. For the wider legal picture, read South African employment law for UK employers.
Your own agreement with the EOR matters too. It sets the fees, the notice you must give, and what happens if the hire does not work out. Read it with the same care.
Stage 6: Onboarding and equipment
Onboarding has two sides. The EOR handles the local employer side. You handle the work side.
On the EOR side, the person must be on the payroll before their first pay day. The EOR's existing tax registration covers this. If you tried to employ the person yourself, you would need to register with SARS within 21 business days* of becoming an employer, in most cases. You would also need to register for UIF and, in most cases, SDL. An EOR is already set up, which is a big part of why it saves time.
Equipment is the other practical step. Some EORs leave it to you. At Flink, the once off setup fee covers equipment, and Flink handles IT and VoIP setup so the person can start work straight away.
On your side, get these ready before day one:
- Email and system accounts, with the right access level.
- A named person in your team they can ask for help.
- A written plan for the first two weeks.
- Clear rules on what data they can see and where they can store it.
Data needs care. The UK data protection regulator warns that people risk losing the protection of UK data protection law when personal information is sent outside the UK. Rules on international transfers may apply. Our guide to UK GDPR and POPIA when your team is in South Africa explains the steps.
Stage 7: Payroll and the first payslip
This is the stage most people mean when they ask how an EOR works. Each month, the EOR pays the worker, takes off the right deductions, and pays them over to the South African Revenue Service (SARS). You pay the EOR's invoice. Flink's FAQ on whether Flink handles payroll and employee contracts covers how Flink does this.
What the EOR does with SARS each month
South African employers deduct income tax through Pay As You Earn (PAYE). They also deal with Unemployment Insurance Fund (UIF) contributions and, where it applies, the Skills Development Levy (SDL).
SARS says employers must submit the monthly EMP201 return and payment within 7 days after the end of each month*. If the 7th falls on a weekend or public holiday, it is due on the last business day before. The EMP201 shows the PAYE, SDL and UIF amounts for that month.
Twice a year, employers also reconcile what they declared and paid. One reconciliation covers 1 March to 31 August. The other covers the full tax year, 1 March to the end of February. The current interim season for 1 March to 31 August 2026 closes on 31 October 2026*. As part of this, the employer must issue each employee with an IRP5 tax certificate. It shows what they earned and the tax taken off.
None of this lands on your desk with an EOR. But it helps to know it exists. Ask your EOR how it would show you that each return was filed on time.
What must be on the payslip
The BCEA sets out what a payslip must show. According to the Western Cape Government summary of the BCEA, each payslip must include:
- The employer's name and address.
- The worker's name and job.
- The period of payment and the pay.
- The amount and purpose of any deduction.
- The actual amount paid.
Where it applies, the payslip must also show the pay rates and the hours worked, including overtime, Sunday and public holiday hours. The employer can only make a deduction if the worker has agreed in writing, or if a law or similar order allows it.
The first payslip is a good moment to check the set up. Ask the worker if their pay arrived on time and matched the offer. If something is wrong, raise it with the EOR at once.
Stage 8: Ongoing HR and performance
After the first month, the EOR moves into the background. You run the work. You set goals, hold one to one calls and give feedback. The EOR supports you when something formal comes up.
Formal issues include a pay rise, a change in hours, a performance problem or a complaint. These touch the employment contract, so the EOR must be involved. South African rules on fair process can differ from UK habits. Do not act alone on anything that could end in a dismissal. Talk to the EOR first.
Set a simple rhythm. A weekly call in the early months, then a review at 90 days. After that, a review every six or twelve months works for most small teams.
Stage 9: Leave
Leave follows South African law, not UK law. The EOR keeps the legal record. You approve time off day to day, so the work is covered.
Here are the main points from the Department of Employment and Labour:
| Leave type | Minimum under the BCEA | Source |
|---|---|---|
| Annual leave | 21 consecutive days* a year, or 1 day for every 17 days worked | Basic Guide to Annual Leave |
| Sick leave | The days they would normally work in 6 weeks, on full pay, over a 3 year cycle* | Basic Guide to Sick Leave |
For sick leave, an employer may ask for a medical certificate if the worker is off for more than 2 days in a row*. The BCEA also covers maternity, parental and family responsibility leave. Public holidays in South Africa differ from UK bank holidays, so agree how cover works.
Stage 10: Offboarding
Every job ends one day. When it does, the EOR runs the legal steps. You make the business decision and give the EOR clear facts.
Under the BCEA, the minimum notice depends on how long the person has worked:
- 1 week*, if employed for 6 months or less.
- 2 weeks*, if employed for more than 6 months but not more than a year.
- 4 weeks*, if employed for a year or more.
Notice must be in writing, except for a worker who cannot write. The worker must also get a certificate of service when they leave. Any annual leave still owed is paid out at the end. SARS tax certificates can cover just the period the person was employed.
Notice is one thing, a fair reason is another. Ending employment in South Africa needs a fair reason and a fair process. Plan for this with the EOR before you act. Check your own notice terms with the EOR too, as your commercial agreement may need notice of its own.
Example (hypothetical): one hire from brief to first payslip
Example (hypothetical): A small UK marketing agency wants a bookkeeper. This example is made up to show how the stages fit together. It is not a promise of timing.
- Week 1. The director writes a one page brief. It lists month end tasks, the software used and four hours of daily overlap with the UK.
- Weeks 2 and 3. The EOR sources and tests candidates. The director interviews three people and picks one.
- Week 4. The EOR makes the offer in rand and issues the contract. The candidate resigns from their current job and works their notice.
- Weeks 5 to 7. The laptop arrives and accounts are set up. The new bookkeeper starts on the 1st of the month.
- End of the first month. The EOR pays the salary with a payslip. By the 7th of the next month, it files the EMP201 with SARS. The agency gets one invoice.
In this example, the slowest part is the candidate's notice at their old job. That is often outside anyone's control. Build it into your plans.
Checklist: is your EOR doing its job?
Use this checklist before you sign, and again after the first payslip. If you are still choosing a provider, our guide to the questions to ask before you choose an employer of record goes further.
| Question | Good sign | Warning sign |
|---|---|---|
| Is the EOR registered as an employer in South Africa? | It can show its registration | Vague answer |
| Who issues the employment contract? | The EOR, under South African law | You are asked to sign as employer |
| Will you see a sample contract? | Yes, before the offer | No |
| Does the payslip show the details the BCEA requires? | Yes | Basic amount only |
| How will you know the monthly SARS return was filed? | Clear answer | No answer |
| Who handles disciplinary and dismissal steps? | The EOR, with you | "That is up to you" |
| What does the fee cover, and what costs extra? | Written list | Surprise charges |
| What happens if the hire leaves early? | Clear replacement terms | Not covered |
Remember that an EOR does not remove every risk. Some questions still sit with you. For example, if you have no company in South Africa, read about hiring in South Africa without a legal entity and take tax advice on your own position.
Where Flink fits
Flink Remotely helps UK businesses hire skilled remote employees in South Africa. We act as both recruiter and employer of record. That means we can cover stages 2 to 10 in this guide. We source and vet the person, employ them under South African law, and handle the contract, payroll and benefits there.
Our vetting uses video interviews, psychometric tests and reference checks. There is no upfront cost to engage us. A once off setup fee covers sourcing, onboarding, equipment and testing. We handle IT and VoIP setup so the person can start working quickly. Many clients onboard their new hire within a few weeks.
One client, One Thousand Trades Group, hired a digital designer through us. Their COO said that "Flink's dual role as both an employer of record and recruitment partner has given us the confidence to grow our team globally while remaining compliant and efficient."
Flink tends to suit UK businesses hiring one or a few people. It works best for roles done on a laptop and judged by output, such as admin, bookkeeping, customer support, marketing, operations and tech.
It may not suit you if the role needs someone on site in the UK. It may also not suit you if you already have a South African company, or plan to hire a large team there. At that scale, your own entity may make more sense.
Before you decide, compare the full yearly cost, what the setup fee covers, the notice terms in our agreement, and how replacements work if a hire leaves. You still own stage 1, the brief. You still manage the person's daily work, goals and reviews. You also still set your own data rules. We handle the local employer side.
What this means for you
An EOR is not magic. It is a clear split of work. You decide who to hire and lead what they do. The EOR handles the local employer duties, from the contract to the monthly SARS return.
The stages you control most are the brief, the final choice and the daily management. Put your time there. Then check the EOR's work at the points that matter most: the contract, the first payslip and any formal HR issue.
If you understand the ten stages, you can ask better questions. You will also spot gaps before they cost you money.
Frequently asked questions
How long does it take to hire through an employer of record?
It depends on the role and on how quickly you decide. The legal set up is fast when the EOR is already registered in South Africa. Flink says many clients onboard their new hire within a few weeks. The candidate's notice at their old job often sets the start date.
Who pays the employee when you use an EOR?
The EOR pays the employee, in rand, with a payslip. It also deducts PAYE and handles UIF and SDL where they apply. You pay the EOR an invoice for the salary, costs and its fee.
Do I need a company in South Africa to use an EOR?
No. That is the main reason UK firms use one. The EOR is already registered as an employer in South Africa, so you do not need your own entity. Take advice on your own tax position all the same.
Who manages the employee day to day?
You do. You set the work and the goals, and you run the reviews. The EOR handles the legal employment side and supports you on formal HR matters.
Can I end the employment if it does not work out?
Yes, but South African rules apply. There is a minimum notice period, and dismissal needs a fair reason and a fair process. Speak to your EOR before you take any step.
If you have a role in mind, talk it through with Flink Remotely and we will map out each stage for your hire.
Correct at the time of writing (October 2026). Rates and rules change, so check the linked source.
Sources
- Registering for Employees' Tax (PAYE), South African Revenue Service, (accessed 17 October 2026)
- Completing the Monthly Employer Declaration (EMP201), South African Revenue Service, (accessed 17 October 2026)
- Reconciliations, South African Revenue Service, (accessed 17 October 2026)
- Pay As You Earn, South African Revenue Service, (accessed 17 October 2026)
- Completing and Submitting Employer Declarations, South African Revenue Service, (accessed 17 October 2026)
- The Basic Conditions of Employment Act, Western Cape Government, (accessed 17 October 2026)
- Basic Guide to Annual Leave, Department of Employment and Labour, (accessed 17 October 2026)
- Basic Guide to Sick Leave, Department of Employment and Labour, (accessed 17 October 2026)
- A brief guide to international transfers, Information Commissioner's Office, (accessed 17 October 2026)
- What Is an Employer of Record and When Do UK Businesses Need One?, Flink Remotely, (accessed 17 October 2026)
- What Is an Employer of Record (EOR)? The UK Perspective, Flink Remotely, (accessed 17 October 2026)
- How quickly can I expect to onboard a new hire?, Flink Remotely, (accessed 17 October 2026)
- Do you handle payroll and employee contracts?, Flink Remotely, (accessed 17 October 2026)
- Flink Remotely homepage, Flink Remotely, (accessed 17 October 2026)
Talk to us about the role you need. Flink helps UK businesses hire skilled remote employees in South Africa, with recruitment, contracts and payroll handled for you.
Or book a call and we will talk it through.