Entries by xp-admin

Attracting & Retaining Top Talent: HR Experts Weigh In

15/07/2022 in , /by

Moderated by Mr. Jeremy Maggs, an engaging segment was held between a panel of three of the top Mobility specialists in the country. The panel comprised of: Nanda Scott, the Group Chief Human Capital Officer at INQ, Menushka Van der Westhuisen, the Head of HR- Africa Hubs at Saint-Gobain and Shargani Pillay, the Remuneration and Benefits Manager at JTI (Japan Tobacco International).

Mr. Maggs moderated the discussion skilfully, with the panel tackling topics from –

  1. Competing to attract top talent;
  2. Skills transfer initiatives;
  3. Impact of legislation changes on business; and
  4. The responsibilities and obligations of employers.

The panel provided further insights as to their professional experiences with regards to reward and recognition strategies, as well as maintaining staff’s mental health during the hard lockdown period and the rest of the Covid-19 years.

Mental health

Mental health was a hot topic of discussion, as the trio all concurred that the mental health of their employees is of the utmost importance and key to maintaining and balancing productivity with downtime.

The audience was also given the opportunity to interact with the panel and some surprising alternative ideas were given. One attendant spoke about her own initiatives, and how their company hosted a few sessions per week, where staff were gathered in an online meeting, to take part in stand ups and stretch exercises, as well as yoga sessions.

Furthermore, weekly telephonic check-ins were conducted to ensure that the employees’ personal interaction needs were accommodated for. Surprisingly, the staff engaged more and shared more about themselves in these sessions, compared to the “pre-Covid” stand ups and watercooler talk usually found around the office.

Incentivisation

It is no secret that the Covid years were difficult, for some people more so than others. The upshot of the Lockdown measures is that people have become more attuned to the possibilities that remote working offers.

Working out of country and switching between employers is something of a trend, deemed “The Great Resignation”, as more people explore the possibilities of alternate employment. It has become apparent to employers, that in order to retain valuable employees, companies would need to incentivise the staff, to not only stay with the company but stay motivated to work.

Shargani Pillay of JTI discussed her company’s initiative to provide a monetary subsidy to each employee, to allow them to purchase products that would make their life easier at home. Power inverters, to keep laptops alive, was one such purchase that the company motivated. This assisted them to overcome the challenges that loadshedding had posed, to working online.

Another attendee stated that they provided larger annual bonuses, to incentivise their staff not only to retain them, but have them return to the office. This approach widely surprised the panellists and the other conference attendees.

Tax, as a defining barrier for remote work

The panel agreed that with many people seeking alternate mediums of employment in the post-covid years, it has become apparent that with the technological revolution allowing us to work from anywhere in the world, that certain legislations would need to be adhered to, that were never a factor before.

One such issue is that of what is quantified as “work” in terms of South African and world-wide immigration legislation. According to keynote speaker Mr. Ben Makhalemele (Assistant Director of Immigration Services at the Department of Home Affairs), if remote workers are carrying out work functions in South Africa, they would need to obtain a valid work permit to continue working in the country. This, he said, would be a requirement whether or not the company they work for has a presence in South Africa, and regardless of where or how they were remunerated.

Further to this, Tax Consulting SA’s Managing Partner Jerry Botha, added that tax creates an additional layer of complexity to any remote working assignment. He explained that government and legislators should carefully consider that remote workers would be subject to taxation in both the country that they are working in, as well as that of the country where they find themselves resident.

Ordinarily resident tests are carried out in South Africa to determine a specific person’s tax liability. However, the test is 22 years old and does not take into consideration the switching behaviour of remote workers in the country. It will take some time for legal practitioners to work such accommodation into legislature on a global scale.

Collaboration

The conference was the first of its kind in South Africa and was welcomed after many years of tight restrictions on in-person events. The diverse panel of speakers and the presence of the Department of Home Affairs was a catalyst to stimulating deep and insightful discussion amongst industry leaders.

Xpatweb look forward to hosting a follow up event later this year and to keep the conversation going as it ultimately relates to the economic development of this country.



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SAQA Processes, Processing Timeframes And Stumbling Blocks

08/07/2022 in , /by

Levi Schooling, an Expatriate Solution Specialist at Xpatweb and ex SAQA employee of 7 years, provided much needed insight into the innerworkings of SAQA and the reason behind the recent delays.

SAQA’s Scope

Whilst those in the Immigration and Mobility services industry utilise SAQA solely for the verification and evaluation of foreign qualifications, Levi provided insight into the full scope of SAQA’s mandate and services. Levi explained that verifications and evaluations of foreign qualifications was not the main focus of SAQA, as they were mandated with the following duties-

  • The maintenance of the National Learner Records Database
  • Regulation of institutions and qualifications issued in South Africa
  • Verification of South African Qualifications
  • Advisory services as to Learning trajectory and career advice
  • The registration of professional bodies
  • The evaluation of foreign qualifications

The Evaluation of Foreign Qualifications

Levi went on to explain the process of how Foreign Qualifications were evaluated and stressed the mammoth task that the evaluators were tasked with. He explained that the evaluations would need to satisfy the following requirements, to be successful –

  • That the qualifications are authentic
  • That the Institution offering the qualifications was an accredited institution at the time of Enrolment and Award
  • That the institution was accredited to offer the qualification at the time of Enrolment and Award
  • That the qualifications are comparable to a South African qualification according to level descriptors indicated by the Policy and Criteria for the Evaluation of Foreign qualifications

Current Affairs at SAQA

Levi discussed that whilst in the past, the evaluation processes ran smoothly, with very few applications taking longer than 6 weeks, he conceded that that was no longer the case. He explained that the lengthy processing times could be attributed to the recent restructuring that occurred shortly after the level 5 lockdown.

Restructuring at SAQA

While tariffs are charged for the evaluation of foreign qualifications, National treasury still allocates funds for SAQA’s other functions. Treasury informed SAQA of implemented budget cuts which continued until the middle point of the Covid years, when it became evident that in order to meet the budget, a large-scale restructuring would be required.

Essentially this meant that whilst SAQA had a staff compliment of over 100 personnel before the restructuring, the proposed restructuring would leave 30 personnel once completed. It was further explained, that out of those 30 employees, a mere 8 of them were assigned to foreign qualification evaluations.

One can now clearly see that the delay and lengthy processing times for SAQA evaluations is directly attributed to the low staff compliment, However, these have intermittently been supplemented by contract workers to assist in compensating for the shortfall. This delay in the processing of the evaluations has had huge impact on visa applications, specifically those looking to apply for work visas.

A way forward

As has been long proposed, SAQA is currently engaging third parties for automation of internal processes to further accommodate for the staffing at SAQA. Levi explained that Xpatweb fosters positive relationships with various stakeholders in the industry, with SAQA being one of these stakeholders. Collaboration is key to smooth legislative processes required for business and to better serve our clients.



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Teaching Back On The Critical Skills List

06/07/2022 in , /by

This shows a recognition by the Department of Higher Education and Training and the Department of Home Affairs, that if we are to supplement the skills shortage in South Africa, we have to start at the point where education becomes a path into professional fields.

The Department has included FET (Further Education and Training) School teachers for grades 8 to 12 within the STEM fields (Science, Technology, Engineering and Mathematics). These obviously being the most prevalent of subjects, if we are to compare to the rest of the world and compete on par within the 4IR (Fourth Industrial Revolution).

Teaching future professionals:

It’s no surprise then that these aptitudes need to be synergised and bolstered with the teaching of relevant skills that are missing in South Africa. As such Nurse Educators and University Lecturers have also been included on the list. Whilst the teaching of the nursing profession is of obvious importance, the fields that would be ideally taught for the lecturing profession is further broken down in the Critical Skills Technical Report issued by the Department of Higher Education and Training. These fields will define which lecturers will be eligible for a Critical Skills Work Visa.

The fields that are being considered are:

  • Accounting and Informatics
  • Agricultural Environmental and Natural Sciences
  • Arts – Design and Social Sciences
  • Business Studies
  • Commerce
  • Economics
  • Education
  • Management Sciences
  • Engineering and the Built Environment
  • Food Service Management
  • Health Sciences
  • Humanities
  • Information and Communications Technology
  • Law
  • Medicine and Health Sciences.
  • Science
  • Physics
  • Public Management and Administration
  • Theology

One can quickly see where our government places importance in skills development. And while a few of these fields belong to occupations that are no longer on the Critical Skills List, it is evident that there is a big push being made for these professions to be taught and grown at home.

The speed of education might be a problem

With professionals such as Doctors, Public Health Management and Nurses being left off the list, one must wonder at the current supplement of such professions in South Africa; Are we able to accommodate for South Africa’s needs whilst these professions are being trained up? And if so, what is to stop them from leaving? The skills shortage exists for many reasons, ranging from better pay or prospects for professional skills abroad to security issues.

Furthermore, the government’s White Paper on Migration makes the important scrutinisation that the ratio between professionals leaving the country, versus professionals being sourced in South Africa via Immigration, is 8:1. A rather telling figure of how desperately South Africa requires professionals.

What will the future bring?

The inclusion of the teaching professions on the list is by no means a bad decision. And we can see that these were carefully chosen according to key areas where skills are missing in the country. But the problem from the beginning, at least in part, was not sourcing such professionals, but retaining them.

The Government will have to take careful steps in incentivising such professions for their specialist knowledge and skills, to give them reasons to stay. True, there are economic and political factors at play, that are difficult to change or even influence. However, retention will be the measure to which the success of the overall initiative will be measured.



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Mauritius Could Be Paradise For Emigrating South Africans. But Will SARS Let You Go?

06/07/2022 in , /by

However, those considering Mauritius as their future home will want to ensure their idyllic lifestyle is not rudely interrupted by SARS and unforeseen tax concerns.

“To protect your future income earned abroad from South African tax, you need to objectively prove to SARS your intention to leave the country permanently, for which best practices require a professionally compiled roadmap,” says Thomas Lobban, Legal Manager: Cross-Border Taxation at Tax Consulting South Africa. Lobban holds a Master of Laws (LLM) in Tax Law.

What makes Mauritius attractive, how do South Africans qualify, and what should they do to ensure a smooth transition, free from tax troubles?

Incentives for Mauritius

On 7 June 2022, the Hon. Minister of Finance delivered Mauritius’ Finance Budget Speech 2022-23, revealing a number of initiatives that are more welcoming to expatriates. This is on top of the initiatives taken in the 2021-22 year.

Aditi Boolell, Director of Temple Group in Mauritius, identified the below as the most prominent initiatives for South Africans to take note of:

  1. The Economic Development Board (EDB) aims to attract 50,000 foreign retirees this year and launched a dedicated online portal to provide them with information on property, lifestyle and amenities in Mauritius.
  2. The EDB also set up an exclusive concierge service for investors and retirees.
  3. The Bank of Mauritius will ensure business or personal accounts can be opened within one week.
  4. There is also no cost at all to start and incorporate a business, and corporations are taxed at a flat rate of 15 percent.
  5. Personal income is taxed at 10 percent up to Rs 700,000; 12.5 percent between Rs 700,001 and Rs 975,000; and 15 percent above Rs 975,000.

There are many more lifestyle and business incentives, and the government is focused on building up the economy through industry.

What options are available?

South Africans have several main residency options available to them. According to Zainab Bouziane, Head of Africa Desk at Xpatweb, the most popular options seen in practice include:

  1. An Investor’s Permit that requires one to invest a minimum of USD 50,000 in a company in Mauritius.
  2. The Retired Permit, available to those over 50 who can prove they have USD 1,500 monthly to finance their lifestyle.
  3. The Property Acquisition option whereby foreign applicants can purchase property within the government’s scheme. Previously, the required value of the property was USD 500,000 but this has been reduced to USD 375,000.

All three permit types allow for dependents to accompany the applicant.

“The Retired Permit is by far the most used option by our clients, and we foresee this trend will continue over the next few years as South Africans look for more favourable destinations to retire to,“ said Bouziane.

What to do about tax

All South African tax residents are required to declare their annual worldwide income to SARS and pay tax on it; unless one claims a qualifying tax exemption. So when relocating to Mauritius, they need to carefully consider their options for cutting ties with SARS regarding their foreign income.

Unfortunately, this is not as easy as simply emigrating from the country. SARS continues to treat expatriates as residents for tax purposes unless they follow a formal process to be recognised as a non-resident.

“This comes down to an applicant’s ability to objectively prove their intention to leave South Africa permanently. ‘Objective’ is the key word here, meaning that SARS will require proof in the form of documentary evidence that supports the position of being tax non-resident,” says Lobban. If they cannot, they will have to meet their yearly tax obligations, even from Mauritius, and risk paying double tax.

Getting the best assistance

Emigrating South Africans should avoid being tangled up in matters of international taxation.

Without professional assistance in dealing with SARS and compiling evidence for their roadmap, things can go horribly wrong and cost more in the long run.

“It is always advised to engage a tax partner that knows SARS’ processes and the depth of information that will satisfy their requirements – preferably a firm with a strong legal component,” says Lobban.

Gone for good

The excitement of moving to Mauritius and experiencing all the country has to offer needs to be tempered with the acknowledgement that one’s tax affairs will always come first.

The good news is that South Africans can start afresh there, free from the worry that SARS will come looking for them.

“For peace of mind, start getting your roadmap together sooner rather than later, with the right help, and you’ll never have to look back,” says Lobban.



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Withdrawal Of Waiver For Critical Skills Graduates In SA

29/06/2022 in , /by
Concerns by foreign national graduates in SA on the new stringent requirements

Over the past weeks, the Xpatweb team has released a series of articles which have in detail described the effects of the release of the new Critical Skills List. The articles have detailed what the notable inclusions and exclusions of occupations as well as new rigid requirements to obtaining a Critical Skills Work Visa, are.

A facet of applicants least observed in Immigration, are foreign nationals who have graduated from a South African tertiary institution. For a while, it was a smooth transition for foreign national graduates to move from a South African tertiary institution into the workplace as they qualified for a Critical Skills Work Visa by completing their qualifications in an occupation on the Critical Skills List. So much so that in 2016, the Minister of the Department of Home Affairs issued an Immigration Directive for foreign national graduates in South Africa to be given consideration of Permanent Residence status.

The aforementioned Immigration Directive waived the following notable points to allow foreign national graduates to apply for Permanent Residence:

  • The requirement of the submission of proof of post-qualification experience of at least five years;
  • Written confirmation from a professional body confirming skills or qualifications;
  • The submission of testimonials from previous employers; and
  • The acquisition of five yeas post-qualification experience.

In light of the new Critical Skills List being released, the Department of Home Affairs has withdrawn this Immigration Directive with immediate effect, thus meaning that all prescribed requirements of the visa or Permanent Residence application must be met. This proves the sternness of the Department and creation of exclusivity, to not only obtaining a Critical Skills Work Visa, but also obtaining Permanent Residence in South Africa under the category of section 27(b) as contemplated in the Immigration Act.

Considerations of the Withdrawal

In the defence of the Department of Home Affairs, and in line with the new onset requirements of the new Critical Skills List, the aforementioned Immigration Directive has become redundant and is not compliant with current Immigration policy.

It is logical that in order to assess a foreign national’s eligibility for Permanent Residence, one has to work backwords and assess their suitability of a Critical Skills Work Visa. The lure of a Critical Skills Work Visa is the ability to almost instantaneously apply for Permanent Residence, which is to attract and retain industry professionals to fill the skills and knowledge gaps in the country. A graduate cannot be considered a professional as they would not have the necessary practical working experience to help fill the gaps that the South African government considers critical. They would still require the relevant training and accumulation of skills and knowledge – those that only a suitably qualified professional can transfer to them.

Furthermore, the statutory professional bodies in South Africa who regulate professionals in the relevant industries, without the necessary post-qualification experience, cannot grant a graduate a professional designation, further supporting the Department of Home Affairs vision of intendent recipients of Permanent Residence under the category of scare skills.

Change of career and life trajectory in South Africa

This is undeniably a shock to the system for foreign national graduates who had intended to use the Immigration Directive to their advantage to obtain Permanent Residence in South Africa. They now also may find that their intended occupation is no longer deemed critical or that they now have to comply with all the prescribed requirements for the intension of permanently residing in South Africa. This could potentially derail those wishing to obtain a Critical Skills Work Visa, or any other Work Visa, if the graduate does not have an offer of employment from a South African company. For most foreign national graduates, they have spent the majority of their lives in South Africa (living and formative schooling years) and have envisioned their lives and career growing with them in our country of opportunity.

Xpatweb’s experienced team of Expatriate Solution Specialists can provide assistance in navigating, what can be a tedious process, to help foreign national graduates attain their goal of Permanent Residence in South Africa.



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