There are certain legal requirements that all labour recruitment employers must follow.
According to the Skills Development Act of 1998, all companies that want to operate in the labour-recruitment industry must register with certain bodies and must also comply with legislation to legally operate in South Africa.
All such companies must register with the South African Revenue Services for tax purposes, with the Department of Trade and Industry if a business is going to operate locally, and lastly with the Department of Labour for unemployment insurance fund purposes.
Irrespective of whether an employer deals with permanent or temporary staff, they are required to register with the Department of Labour as a private employment office for gain.
Employers also need to complete and submit relevant forms to their local Department of Labour office. Once they have made an application, inspectors from the department will contact them and make arrangements to conduct an inspection visit and audit their premises. After the inspection, they decide whether or not to approve the registration.
Once confirmed, the employer will be issued with a Registration Certificate that must be displayed. This certificate must be renewed every two years or when the employer moves premises.