Eswatini is a popular destination for foreign investors looking to expand their workforce abroad, mainly due to its proximity to South Africa and its growing labor force.

This help guide will provide insights into the strategic advantages of hiring in Eswatini, including a 9-step hiring guide, a list of mandatory employee benefits, and ways Remote People can help optimize the hiring process.

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Why Expand Your Business to Eswatini

Strategic Advantages of the Eswatini Market

Eswatini has English as one of its main languages, making it easy for countries such as the UK, the USA, and Australia to hire here. It has lower wages than other nearby countries, and its population is young and growing, with its government allocating significant funds towards education.

With a stable legal framework and clear labor laws, Eswatini is a country that offers predictability when hiring, making it a good choice for many companies looking to hire abroad.

Importance of Being Aware of Eswatini Labor Laws

The Employment Act of 1980 is the main Eswatini labor law, providing information and regulations on employment contracts, rules around terminations, notice periods, employee rights, and severance.

Other acts that further inform on Eswatini labor law include:

  • Wages Act of 1964
  • Industrial Relations Act of 2000

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Step 1: Define Your Hiring Needs

The first step when hiring in Eswatini is to determine which roles you need. This includes thinking about how many people you’re looking to employ and the tasks you need help with for expanding your team.

It’s important to consider both long and short-term goals when making decisions here, to ensure the employees you’re hiring now will benefit your business in the future as well as in the present.

Step 2: Familiarize Yourself with Compliance Requirements

Understanding the specific compliance requirements of the country you’re hiring in can save you significant time and issues moving forward when hiring.

When hiring in Eswatini, you must comply with registration, tax, and payroll compliance, as well as Provident Fund / ENPF contributions. Minimum wages and statutory leave entitlements must be observed, as well as sick leave, maternity leave, and probation periods.

Step 3: Choose Your Hiring Method

There are three main hiring methods in Eswatini; these are as follows.

Establishing a Legal Entity

Setting up a company in Eswatini is the best way of retaining full control over the hiring process. This involves registering with the relevant authorities, setting up payroll, ensuring tax registrations are set up, and that your company complies with all local statutes.

While this allows companies to hire directly, it does come with high setup costs and can also be very time-consuming.

Using an Employer of Record (EOR)

An EOR provider can be a useful partner when hiring in a foreign country, with EORs taking responsibility for the legal hiring process. 

This can result in faster onboarding, less risk of misclassification, and general support when hiring in Eswatini. While instructing an EOR requires relinquishing some control, it usually works out cheaper than setting up a legal entity.

Hiring Independent Contractors

Independent contractors are a flexible option, particularly for companies looking to hire for project / seasonal-based work.

Companies are less obligated to provide full employee benefits to contractors, and there will also be less load on payroll services with contract workers. However, it’s important to ensure contractors are classified correctly to prevent any issues with misclassification, where behavior may look like employment.

Step 4: Develop a Recruitment Strategy

Putting together your recruitment strategy involves writing your job adverts and publishing them in areas where people are looking to apply for work in Eswatini.

Make sure your descriptions include all responsibilities of the job role, while also adhering to anti-discrimination laws.

When you’re happy with your adverts, start posting them on high-traffic job boards and professional networks, including the following:

Step 5: Conduct Interviews and Assessments

Once you have a shortlist of candidates, you can start conducting interviews and assessments.

You should bear in mind cultural norms when interviewing potential staff members to set a good first impression. This involves respecting hierarchy and formal titles, being polite and punctual, and ensuring clarity on all job duties and expectations.

Step 6: Know the Legal Limitations of Background Checks

It’s normal to carry out background checks in Eswatini, but it’s important to fully understand the limitations of these checks.

For example, all checks must be relevant to the role in question and only be carried out with the candidate’s consent. You should also ensure that all personal data is stored correctly and isn’t shared with other companies.

Step 7: Draft Employment Contracts

Putting together your employment contracts is one of the most important steps in the recruitment process.

You should ensure that all contracts include a clear job title, job description, and details around notice periods/probation periods. It’s worth considering having your contracts reviewed by a legal professional if you’re at all unsure about your contracts.

Step 8: Register with Authorities and Set Up Payroll

Before bringing your recruits on board, you need ot register them with the local authorities and set up payroll processes.

All workers should be registered with the Eswatini Revenue Authority to ensure taxes are allocated correctly, and the Eswatini National Provident Fund Board for pension allocations.

This is also a good time to enrol your workers in any health/life insurance schemes you’re running as a company.

Step 9: Onboard Your New Employees

The last step in the process is to onboard your new employees.

Make sure they have access to all the necessary training and resources they need to do their jobs properly, and introduce them to the colleagues they’ll be working with.

You should also explain any company policies and procedures to avoid any confusion in the future.

Key Employment Laws and Regulations

The Eswatini Labor Code

The Employment Act of 1980 is Eswatini’s main labor code, which informs employees and employers of their rights and obligations when operating in a working environment.

Companies must comply with the labor code to ensure fair treatment of workers and to avoid penalties or fines from the Eswatini government.

Social Security Regulations

Eswatini operates a Social Security Program which covers citizens and employees upon retirement, and in the event of sickness, maternity, work injury, or unemployment.

The rates of social security in Eswatini are as follows:

  • Employees: 5% of monthly earnings towards the provident fund
  • Employers: 5% of covered payroll towards the provident fund

Employment Standards and Employee Rights

Unions and Works Council

Trade unions are legal and regulated in Eswatini, as per the Industrial Relations Act of 2000. This act allows for collective bargaining, dispute resolution, and union registration.

Work councils are not common in Eswatini, outside of formal union processes.

Types of Employment Contracts

The main types of employment contracts in Eswatini are as follows:

  • Permanent/indefinite contracts: Open-ended agreements that are generally used for stable, full-time employment
  • Fixed-term contracts: Used for project or season-based work. They have a set start and end date.

Working Hours and Overtime

Standard Working Hours

Normal working hours in Eswatini are 45 hours spread over 6 days. Employees cannot be required to work more than 5.5 days consecutively; however, exceptions may be made depending on the industry.

At least one day of rest must be provided to employees per week.

Overtime Regulations

Hours worked beyond 45 hours per week count as overtime.

Overtime must be paid at a rate of at least 1.5 times an employee’s normal wage, and can be denied by workers if they do not wish to consent to overtime.

Leave Entitlements

Annual Leave

Employees in Eswatini are entitled to a minimum of 12 days of paid annual leave per year, once they have completed 1 year of continuous service.

Wages for annual leave must be paid in advance, and annual leave must be taken within 6 months after the year it was accrued.

Sick Leave 

If employees are too unwell to work, they are entitled to a minimum of 14 days of paid sick leave per year, plus an additional 14 days of sick pay at 50% pay.

Sick leave is only allocated if the employee has worked for their employer for a minimum of 3 months.

Maternity and Parental Leave

Female employees are entitled to a minimum of 4 consecutive months of maternity leave, which can start no later than 4 weeks before the predicted due date.

Pay for maternity leave is covered under the Unemployment Insurance Act, with employers being under no obligation to provide statutory paid maternity leave.

Male employees are generally eligible for 2 weeks of paid paternity leave if their wife has a baby. Workers must request paternity leave from their employer in writing.

Termination and Severance

Notice Periods

Employees in Eswatini are expected to give the following notice periods as per the Employment Act of 1980:

  • Less than 1 month of service: 1 week’s notice
  • 1 – 12 months’ service: 2 days for each completed month worked
  • More than 12 months of service: One month + four days for each complete year worked

Severance Pay

Employees are eligible for severance pay if they have been dismissed without fault.

This is usually calculated as 10 working days of wages for each year of completed service, after the first year.

Mandatory Contributions

Social Security Contributions

The rates of social security in Eswatini are as follows:

  • Employees: 5% of monthly earnings towards the provident fund
  • Employers: 5% of covered payroll towards the provident fund

Health Insurance and Pension

There is no statutory requirement for employers to provide health insurance to employees, with the Provident / Pension fund administering most funds for healthcare.

The Provident Fund provides employees with a basic state pension, with occupational and private pensions being available to those who wish to increase their retirement funds.

Optional Benefits

Employers are advised to offer workers supplementary benefits to improve staff retention rates.

A few examples of supplementary benefits include:

  • Private medical/healthcare insurance
  • Transport, housing, or food allowances
  • Performance bonuses
  • Paid sick leave/maternity leave
  • Flexible working
  • Enhanced annual leave

How to Hire Employees in Eswatini — Our Take

Hiring employees in Eswatini can be easier with the help of Remote People.

We specialize in Employer of Record broker services, helping companies connect with an EOR provider that is well-suited to their business and takes on the legal responsibility of hiring in this country. They can take on tasks involving employee benefit administration, tax obligations, and even payroll processes.

Contact Remote People to see how we can help your business hire in Eswatini efficiently and compliantly.