Increased Global Hiring And Talent Shortages Bode Poorly For SA Critical Skills

Increased Global Hiring and Talent Shortages Bode Poorly For SA Critical Skills

“This means more international competition for South African employers desperate to attract critical skills from abroad,” says Marisa Jacobs, Managing Director of visa and expatriate services firm Xpatweb.

The survey indicates that South Africa exhibits the second strongest hiring intention (38%) among European, Middle Eastern and African (EMEA) countries, after Ireland (42%). However, 78% of local employers reported talent shortages resulting in difficulties filling positions.

The global labour gap also creates greater opportunities for skilled South Africans to emigrate to greener pastures, further eroding the country’s talent base.

There is no doubt that South African employers will have to work harder to acquire the critical skills they need.

Less red tape

Companies who identify foreign talent must act quickly to hook them and cannot afford to be held up by bureaucratic immigration processes that delay entry into the country.

So, it is more important than ever that employers actively involve themselves in the development of legislation around critical skills to prevent the build-up of unnecessary red tape.

Regulations should be fair to South Africans but also pragmatic about the availability of specialised professionals locally. New bills, like the Employment Services Amendment Bill 2022, seek to regulate the hiring of foreign nationals more closely while acknowledging the need to accommodate foreign critical skills.

This is only possible when the needs of critical skills employers are well known to policymakers. “By making their voices heard, employers can be instrumental in a more meaningful and streamlined process for importing foreign talent,” says Jacobs.

One way to achieve this is by participating in Xpatweb’s currently running Critical Skills Survey 2022.

An authoritative reference

Xpatweb has run its Critical Skills Survey annually since it was first launched in 2017. Over time, its survey data has become recognised as an authoritative reference among policymakers.

The firm was asked to present its 2020/21 findings to the Department of Higher Education and Training (DHET) and other participants involved in developing the Occupations in High Demand (OIHD) list. Its data was also referenced both directly and indirectly in compiling the national Critical Skills List, published in February 2022, and amending the final version, published in August 2022.

“As the only private sector organisation invited to participate in these milestone events, we were able to convey the voice of industry to the government’s ear through our survey and interpretation of its data,” says Jacobs. She notes that the firm’s input was well received and carefully considered by the stakeholders.

Her team was also invited to contribute its insights to the development of the aforementioned Employment Services Amendment Bill 2022.

Jacobs says the firm is committed to helping businesses benefit from future legislation by continuing to engage government on open access to critical skills. “The more companies participate in the survey, the more readily their views will be received by policymakers,” she says.

Xpatweb’s survey gives employers the opportunity to be heard by legislators and its data allows them to participate indirectly in shaping immigration legislation.

Invitation

Jacobs invites critical skills employers to ensure their needs are recognised by taking part now.

As the global pool of special talents shrinks, South African employers will need every advantage at their disposal, including efficient legislation that works in their favour. Any delays could force prospective hires to seek employment in countries that are more accommodating.

“With sufficient data of the quality our survey provides, lawmakers can consider a better balance in their approach to critical skills regulation,” says Jacobs.

SARS Ups The Ante On Expatriates Trying To Cease Their Tax Residency

Employers Have a Window of Opportunity on their Zimbabwean Staff

Impact on employers of ZEP holders

The battle to retain already trained and effective staff remains a priority for most employers and the announcement by DHA will no doubt create anxiety for any employer of individuals on the existing ZEP dispensation. Any prudent business owner understands the benefit of retaining quality staff as well as the frustration, time and money it takes to recruit new staff.

We have seen active moves by employers to start the process to retain their Zimbabwe employees. With the various Department of Labour audits now happening, employers have effectively one of two choices – start to immediately address the retention of ZEP staff with or have a contingency plan in place for these resources which will soon become unemployable.

Visa options available

During a recent interview on Radio 702, Marisa Jacobs, Managing Director at Xpatweb, SA’s largest independent immigration practice, explained the various visa options available in terms of the Immigration Act that ZEP holders could explore. This includes:

  1. Spousal / Life Partner Visa with Work Authorisation (if married or in a permanent relationship with a South African Citizen / Permanent Resident, subject to conditions).
  2. Relative’s Visa (if related to a South African Citizen / Permanent Resident who is either a spouse, parent or child).
  3. Critical Skills Work Visa (if holder of critical skills as set out in the Gazetted Critical Skills List issued by DHA).
  4. General Work Visa (if offered South African employment and approved by Department of Labour, subject to assessment).
  5. Study Visa (if enrolled /accepted to take up studies at a registered educational institute in South Africa).
  6. Business Visa (where you have your own business and meet the investment and labour requirements).
  7. Retired Person Visa (where the applicant has income exceeding R37,500 per month from a pension, irrevocable annuity, or other income source).

After applying for a mainstream category, eventually a Permanent Residence Permit can be secured.

Next steps

With the countdown until 30 June 2022 underway, employers are encouraged to support their ZEP holder staff by submitting their application as soon as possible heading the call by the Minister.

The process to apply for any of the above visa categories can be administratively burdensome and costly where you get it wrong. This is where proper planning and experience of the visa process, along with a solid relationship with DHA is worth its weight in gold, as it will greatly improve the probability of a successful application.

Marisa Jacobs and minister of DHA
VFS Submission

VFS Submissions

Xpatweb adds value to the services we provide to our clients. We are pleased to share that on certain days, any individual can now submit their visa applications without hassle at our offices in Bryanston.

Why travel to Pretoria CBD when you can meet an immigration consultant and experience a seamless visa application process closer to home?

We’d like to extend to you a special invitation to come to our offices and submit your visa application without any hassle whilst saving you travelling time and avoiding the queues.

Subscribe to our newsletter below to receive updates on dates when officials from the Visa Facilitation Services Centre (“VFS”) will be visiting the Xpatweb offices.

There are limited slots available during these visits so booking are essential. Contact your specialist today to secure your slot or email us at contact@xpatweb.com

Submission has never been quicker, more convenient, and secure. Book your visa application today!

Updated Process For Applications For Id’s And Naturalisation Via Permanent Residency

Updated Process For Applications For ID’s And Naturalisation Via Permanent Residency

Prior to this directive, all individuals who wanted to apply for ID’s and Citizenship, would first need to apply for and obtain Proof of Permanent Residency. This application was done via VFS and adjudicated at Head Office. This caused a delay in obtaining the document, as some applicants waited up to a year to receive same.

Home Affairs have now confirmed that this will no longer be a requirement when applying for ID’s. Additionally, those who wish to apply for Citizenship by Naturalisation, will no longer be required to apply for proof of PR. Instead, they will need to email a copy of their PR certificate to the verifications department and will then be provided with the verification within 10 – 30 days from the date of submitting the request.

The Directive does confirm that the Proof of PR process will need to be followed by those who do not have their original Permanent Residence permit.

What-South-Africans-Lose-When-Adopting-Foreign

What South Africans Lose When Adopting Foreign Citizenship

This condition is stipulated in Chapter 3: Loss of South African Citizenship, Section 6(1) of the South African Citizenship Act of 1995. It does not include someone who gains foreign citizenship through marriage, and the section also does not apply to children minors.

Relinquishing your status as a citizen does not have any tax benefits for those seeking to cease their tax residency. Also, you will be alienated from certain rights you may consider your heritage and not worth sacrificing.

So, when developing your roadmap towards full financial emigration, whether this is just financially moving your money or also the physical move of a family, it is critical that you consider deeply what South African citizenship means to you. You must also be well informed of the options available to you, as these decisions impact the rest of your life as well as generations to come.

Residence vs citizenship

Foreign citizenship must not be confused with permanent residence abroad.

Many South Africans emigrate under a host country’s permanent residence programme, requiring them to hold an appropriate visa throughout. They cannot apply for that jurisdiction’s passport, and may typically be excluded from rights reserved for full citizens, like voting. Just moving to another country does not result in the loss of your South African citizenship. A good example is Mauritius, where a retirement visa can be relatively easily obtained and with no property investment. However, this does not qualify you to eventually take up Mauritius citizenship.

Where you formally accept citizenship in another country, you can be issued with its passport and enjoy all the benefits of being a citizen. But you will relinquish your South African citizenship by that act alone. Although the Act provides for the resumption of your citizenship, this is not possible as long as you remain a foreign national.

Yet, there is a way to avoid this situation, but you must act quickly.

Dual citizenship

Section 6(2) of the Citizenship Act allows you to apply to the Minister of Home Affairs to retain your South African citizenship. This is provided you do so prior to losing it for accepting foreign citizenship. Because once it is lost, it is lost for good or a process which no-one will voluntarily undertake.

If the Minister deems it fit, they will order the retention of your citizenship, as shown in the example certificate of exemption below.

What-South-Africans-Lose-When-Adopting-Foreign-Citizenship

Making this application a priority will allow you to enjoy the best of both nationalities.

Tax residency

It may be tempting to suppose that relinquishing your citizenship is sufficient grounds to cease tax residency in South Africa. Or that becoming a foreign national absolves one of any outstanding tax or legal obligations.

This is not true and not worth sacrificing your citizenship for.

Section 12 of the Act provides that a person is not freed “from any obligation, duty or liability in respect of any act done or committed before he or she ceased to be a South African citizen”.

This includes your tax obligations to SARS, which remain even after you become a foreign citizen, until they are settled.

Planning ahead

There are significant benefits to having a second passport, often referred to as a “Plan B”, for those not physically leaving South Africa; but just keeping their wealth outside South Africa or being on a roadmap to migrate their family internationally. The costs involved depends very much on your goals with another passport and which country’s status you want to access.

As a practice which specialises in international employees, business owners with international interests and high net worth families, we see a second passport strategy as an important part of the roadmap. Also, we often assist South African’s who emigrate to keep their South African passport, as one never knows what the future holds and there is no tax benefit in giving up your South African citizenship.