This is how much companies could be fined for hiring undocumented immigrants

The changes to the Employment Services Bill are made to put South Africans first.


Minister Nomakhosazana Meth has presented the Employment Services Amendment Bill (ESAB) to Parliament’s Portfolio Committee on Employment and Labour, citing that the changes are made to put South Africans first.

The move follows the department’s earlier publication of a notice of its intention to amend the Act to address South Africa’s high unemployment rate, protect migrant workers from exploitation and curb the employment of undocumented immigrants.

Employers who fail to comply with the proposed amendments could face stricter penalties from the department of Employment and Labour.

Putting South Africans first

“Illegal immigration must be handled through lawful state enforcement. Vigilantism must be rejected, but the concerns of South Africans must be acknowledged. The Employment Services Amendment Bill is contributing towards exactly that,” said Meth on Thursday.

Employers may only employ foreign nationals after meeting prescribed conditions, including showing they first attempted to recruit suitably qualified South Africans.

Obligations to employers include that they must verity that a foreign national is legally allowed to work in the country, and keep prescribed employment records.

Penalties for hiring undocumented foreign nationals

Employers who fail to comply with the amendments, especially repeat offenders, will face stricter penalties.

Proposed fines by the department are:

  • R100 000 for a first offence.
  • R200 000 for a second offence.
  • Up to R1 million or 10% of a company’s gross income for a third offence.

“These measures are intended to discourage unlawful employment practices and ensure that compliant employers are not placed at a competitive disadvantage,” said Meth.

Employment quotas for foreign nationals

Another amendment that employers have to be careful of is the employment quotas set by the minister. This will basically guide how many foreign nationals can be employed in a company.

“The Bill further empowers the minister of Employment and Labour, following consultation with the Employment Services Board, to determine maximum quotas for the employment of foreign nationals in specific economic sectors, occupational categories or geographical areas.

“These determinations will be guided by labour market conditions and published through a transparent Government Gazette process.”

Migrants still have rights

Meth said that foreign nationals who can legally work in the country would still have rights. The amendment of the act is to ensure that all workers are protected from unfair labour practices and exploitation.

“Under the proposed amendments, foreign nationals employed in contravention of the law will retain the right to enforce employment-related claims against employers,” she said.

“This provision seeks to prevent unscrupulous employers from taking advantage of workers’ immigration status by paying below-regulated wages or imposing conditions that fall short of South African labour standards and collective agreements.

“Labour inspectors and bargaining council agents will also be empowered to pursue claims on behalf of affected workers where necessary, further strengthening workplace protections and access to justice. Additionally, employers will be prohibited from assigning foreign nationals work that is not authorised under their visas, permits or relevant legislation.”