The moment you hire your first employee, your business transforms from a solo venture into an employer with significant legal obligations. Suddenly, you’re navigating complex labour law requirements and acronyms like UIF and COIDA that can overwhelm even experienced entrepreneurs, and it can feel like a lot to figure out.
Here’s the deal: Department of Labour registrations aren’t optional—they’re legal must-haves that protect both your team *and* your business. Skip them, and you’re looking at penalties, legal liability, and serious disruptions that could cause epic damage your growing business.
When business owners ask “Do I need to register with the Department of Labour?” they’re usually asking the wrong question. The real question is: “What are my obligations as an employer, and how do I fulfil them properly?”
The Department of Labour oversees several critical systems:
Each system has its own registration requirements, timelines, and compliance obligations that interconnect in complex ways.
When You Must Register: The moment you hire your first employee, you have 7 days to register with UIF. This isn’t flexible—it’s a legal deadline that starts ticking immediately.
Who Must Be Registered: All employees earning less than R17,712 per month, including full-time, part-time, fixed-term contract, temporary, and seasonal workers. Independent contractors, part-time employees who work less than 24 hours a month, and company directors are generally excluded.
The Process: UIF registration involves employer registration, individual employee registration, monthly declarations, and ongoing contribution management.
COIDA registration is mandatory for all employers and must be completed before employees start work. This operates on a risk-based system where different industries face different requirements based on their risk profile.
The registration must happen before day one—there’s no retroactive option. This includes risk assessment, registration submission, and certificate issuance to prove coverage.
Once your annual payroll exceeds R500,000, you must register for SDL at 1% of total payroll costs. However, this isn’t just a cost—it’s an investment opportunity through the SETA system, where you can potentially recover payments through approved training programs and skills development initiatives.
This complexity is where integrated professional expertise becomes invaluable. When employment law specialists work alongside financial experts who handle payroll and compliance systems, they ensure your labour registrations support rather than complicate your business operations.
At Cosecly we understand that employment law compliance must be practical and scalable for growing businesses. Our team recognise that start-ups, creatives, and tech companies need employment structures that adapt to changing team sizes, remote work arrangements, and evolving industry requirements.
The synergy becomes particularly powerful when our cloud-based accounting specialists implement the ongoing payroll and compliance systems that labour registrations require. While our legal experts ensure your employment contracts align with labour law requirements, our financial professionals build systems to manage monthly UIF declarations, COIDA returns, and SDL calculations seamlessly.
Getting registered is just the foundation. Successful employers build comprehensive employment practices that turn compliance obligations into competitive advantages through integrated HR systems, proactive risk management, and strategic skills development.
The “I’ll Do It Later” Trap: Many entrepreneurs delay registrations, leading to penalties, retroactive complications, and employee relations issues.
Incomplete Registration: Some businesses register for UIF but forget COIDA, creating gaps that are costly to fix.
DIY Complex Situations: While basic registrations might seem straightforward, complex employment arrangements often require professional guidance.
Department of Labour registrations aren’t just red tape — they’re the foundation for building a legit, sustainable team. Get them right from the start, and you protect your people, your business, and set yourself up to grow with confidence.