Assisting a former colleague

Sayf777

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In the current climate a former colleague is finding it difficult finding a job after their contract came to an end.

I contacted a local volunteer organisation and asked if he can work there full time (they assist the community with food drives etc) and I would like to pay him from my personal account a monthly salary/remuneration/wage.

It falls under the amount that would attract a donation tax as well as under the taxable amount for him.

I'd like this to not attract any issues with sars/labour law so what would the best way forward be?

Ideally I'd like to tell him his working as a volunteer full time and that he would get a donation from me monthly.

In case anyone asks no, he won't want to get money for nothing hence the easiest is a volunteer organisation until he finds another job he would prefer more.
 
Anyway to make a legal agreement between me and him?
 
I can't see how the charity could legitimately take him on, let him pseudo-volunteer, and then accept your donation as being specifically for him.

Perhaps, instead, you could employ him yourself. Since the amount paid is relatively low, you could set the hourly rate as low as you can go, and make it an hourly contract. Specify that the number of hours is variable, by arrangement - so that you are not bound to spending any minimum. For the same reason, you could also make it a fixed, limited-duration contract.

If he worked for you part-time, on that basis. you could then send him out, as part of his employment duties with you, to volunteer (in your stead, as it were) at the charity.
 
In the current climate a former colleague is finding it difficult finding a job after their contract came to an end.

I contacted a local volunteer organisation and asked if he can work there full time (they assist the community with food drives etc) and I would like to pay him from my personal account a monthly salary/remuneration/wage.

It falls under the amount that would attract a donation tax as well as under the taxable amount for him.

I'd like this to not attract any issues with sars/labour law so what would the best way forward be?

Ideally I'd like to tell him his working as a volunteer full time and that he would get a donation from me monthly.

In case anyone asks no, he won't want to get money for nothing hence the easiest is a volunteer organisation until he finds another job he would prefer more.
It's a noble thing to do, keeps him focussed and hopefully sober. Idle hands, devil's playground.
Your tax guy may be able to assist with your specific questions, but from my side I would want to ask:
How employable is he?
What is he discovers that he truly loves the work, and plans on staying?
How long can you you sustain his wages for?
 
Don't give money. Full stop.
Groceries only.
If you stop paying you will be sued for not keeping it in the life style it became used to.
 
Don't listen to the naysayers, this very doable and a great gesture. Make sure you spell out the details in advance, including the timeline.

Tax wise there is nothing wrong with you donating towards a specific project and them employing him for that project. Depending on the amounts the NPO will have to deduct PAYE, uif etc. Other option is for them to employ him on a contract basis (i.e. not a permanent employee) but best advice is to speak to a tax guy/girl.
 
Don't listen to the naysayers, this very doable and a great gesture. Make sure you spell out the details in advance, including the timeline.

Tax wise there is nothing wrong with you donating towards a specific project and them employing him for that project. Depending on the amounts the NPO will have to deduct PAYE, uif etc. Other option is for them to employ him on a contract basis (i.e. not a permanent employee) but best advice is to speak to a tax guy/girl.
Pretty much this :thumbsup:
 
Thanks for the response guys, will probably ask him to work there for the remainder of this month and get a direct donation from me. If the npo and him are a good fit will maybe ask them to draw up a 6 month contract with me paying a donation to the npo to cover.

Again will only do what a tax consultant says is the best way forward so sars can get their piece of flesh where necessary.
 
The up skill comment is something I will look into but I don't know what would be useful for him..
 
I can't see how the charity could legitimately take him on, let him pseudo-volunteer, and then accept your donation as being specifically for him.

Perhaps, instead, you could employ him yourself. Since the amount paid is relatively low, you could set the hourly rate as low as you can go, and make it an hourly contract. Specify that the number of hours is variable, by arrangement - so that you are not bound to spending any minimum. For the same reason, you could also make it a fixed, limited-duration contract.

If he worked for you part-time, on that basis. you could then send him out, as part of his employment duties with you, to volunteer (in your stead, as it were) at the charity.
How about using this as a basis between me and him?


Title could be personal assistant and list of duties can be the duties of a volunteer at the npo?
 
It's a noble thing to do, keeps him focussed and hopefully sober. Idle hands, devil's playground.
Your tax guy may be able to assist with your specific questions, but from my side I would want to ask:
How employable is he?
What is he discovers that he truly loves the work, and plans on staying?
How long can you you sustain his wages for?

100%, no one is promised tomorrow hence I will definitely use this month as a trial and try to even gather extra funds to give a once off donation to the npo and ask them to sign him on for as a temp contact for the rest of the year.. if I don't use the contract above.

Hopefully this would give him time to find something that's more suited to if its not this.

But as you said if he truly loves the work, this will be something that will and can only be discussed further at a later point.
 
If the charity will employ him, so much the better. If they are allowed to just accept your donation, and use it for the purpose you designated, then you don't have any of the responsibilities of an employer. However, in that case he has to spend his working time doing what they tell him to, and that might not leave time for his developing other, more marketable skills.

If you decide to employ him, you could send him out to that charity, fair enough. But you'd also have the freedom - if you decide you are going to put in the effort to try to get him a real job - to send him elsewhere, for example for a day or a week to help any of your other contacts, (friends with businesses or organisations, or your clients or suppliers who trust you and would be willing to give him a chance) in whatever it is they do.

That standard contract form is a good basis, but you should make your own modifications, within the law.

  • I think you need to be very clear, in yourself, whether this is intended as ongoing support by you, over a sustained period of time, (for example if you are wealthy enough to afford to pay him a salary for a long time) or whether you are trying to offer him a temporary bridge so he can later no longer need you. If it is the latter, I recommend you make the contract of limited duration, over just one or two months, so that if it doesn't work out, you can just walk away and throw out the whole idea without having lost much. If the experiment works well, you can renew the contract. Be aware, though, that if you do that too many times in a row, it becomes regarded as a permanent contract, from which it is not so easy to exit. Therefore, it could be a wise idea to employe him for two months, fixed, then wait a month or two, and then - having "gathered extra funds", as you put it - you could then contact him again, and offer a next limited duration contract.

  • Also, I'd make an hourly wage and not a monthy salary, with the contract saying that the number of hours is flexible by mutual agreement. Specify a minimum and a maximum number of hours per week. The minumum will mean, in effect, the very least you will pay him and the least that he must turn up and do something. The maximum will limit your expenditure on this project, and may motivate him to want to prove to you that he can do the work as much as he can.

  • As far as leave is concerned, don't go with annual leave, but with leave accrued on the basis of the number of hours he worked. You can agree, with him, when you will pay out the leave pay, for example, at the end of each month or at the end of the limited duraction contract.
In terms of the Act, annual leave accrues to an employee. The leave accrues at the rate of one hour for every 17 hours worked, or one day for every 17 days worked, or 1,25 days per month, the total permitted minimum being 15 working days per annum on full pay in each annual leave cycle or in each of period of 12 months calculated with from the date of employment.
 
A verbal cash agreement with no documentation should cover you
 
If the charity will employ him, so much the better. If they are allowed to just accept your donation, and use it for the purpose you designated, then you don't have any of the responsibilities of an employer. However, in that case he has to spend his working time doing what they tell him to, and that might not leave time for his developing other, more marketable skills.

If you decide to employ him, you could send him out to that charity, fair enough. But you'd also have the freedom - if you decide you are going to put in the effort to try to get him a real job - to send him elsewhere, for example for a day or a week to help any of your other contacts, (friends with businesses or organisations, or your clients or suppliers who trust you and would be willing to give him a chance) in whatever it is they do.

That standard contract form is a good basis, but you should make your own modifications, within the law.

  • I think you need to be very clear, in yourself, whether this is intended as ongoing support by you, over a sustained period of time, (for example if you are wealthy enough to afford to pay him a salary for a long time) or whether you are trying to offer him a temporary bridge so he can later no longer need you. If it is the latter, I recommend you make the contract of limited duration, over just one or two months, so that if it doesn't work out, you can just walk away and throw out the whole idea without having lost much. If the experiment works well, you can renew the contract. Be aware, though, that if you do that too many times in a row, it becomes regarded as a permanent contract, from which it is not so easy to exit. Therefore, it could be a wise idea to employe him for two months, fixed, then wait a month or two, and then - having "gathered extra funds", as you put it - you could then contact him again, and offer a next limited duration contract.

  • Also, I'd make an hourly wage and not a monthy salary, with the contract saying that the number of hours is flexible by mutual agreement. Specify a minimum and a maximum number of hours per week. The minumum will mean, in effect, the very least you will pay him and the least that he must turn up and do something. The maximum will limit your expenditure on this project, and may motivate him to want to prove to you that he can do the work as much as he can.

  • As far as leave is concerned, don't go with annual leave, but with leave accrued on the basis of the number of hours he worked. You can agree, with him, when you will pay out the leave pay, for example, at the end of each month or at the end of the limited duraction contract.
In terms of the Act, annual leave accrues to an employee. The leave accrues at the rate of one hour for every 17 hours worked, or one day for every 17 days worked, or 1,25 days per month, the total permitted minimum being 15 working days per annum on full pay in each annual leave cycle or in each of period of 12 months calculated with from the date of employment.
Thanks for the detailed response. Appreciate it.
 
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