Independent Contractors vs Employees

Marizanne Augoustinos, a seasoned legal advisor and former practising advocate, shares her expert advice on why it matters to understand the difference between Independent Contractors and Employees in a medical practice.

Many medical practices hire doctors, nurses, or therapists as independent contractors, especially when engaging locums. However, it’s crucial to understand that SARS (South African Revenue Service) and the CCMA (Commission for Conciliation, Mediation and Arbitration) may interpret these relationships differently.

Understanding the Difference Between Independent Contractors and Employees

Misclassifying an employee as an independent contractor can lead to serious consequences:

• Penalties from SARS,

• Pay-As-You-Earn (PAYE) liabilities,

• Unemployment Insurance Fund (UIF) non-compliance,

• Potential labour law claims, such as unfair dismissal or disputes over leave.

If your practice exercises control over working hours, leave provisions, or if the worker is economically dependent on you, legally, that person could be classified as an employee rather than a contractor.

The safest path is to have a clear, written contract that accurately reflects the true nature of the working relationship. This contract should comply with labour law and HPCSA (Health Professions Council of South Africa) guidelines.

Minimising Your Practice’s Liability

To limit liability for both your practice and yourself:

• Ensure all agreements — whether for employees or contractors — are legally compliant,

• Align contracts with applicable labour laws and HPCSA requirements,

• Maintain transparency about roles, responsibilities, and entitlements.

By taking these steps, you safeguard your practice and promote a fair working environment.

If you need assistance with your medical practice contracts or want to ensure your legal compliance, APS Africa is here to help. Contact us for expert support tailored to the healthcare sector.

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Sanet Rieket

Co-founder