South Africa Opens Public Comment on Employment Services Amendment Bill: Fines Up to R1 Million for Hiring Foreign Workers Unlawfully
Updated: 3 hours ago
CAPE TOWN, September 23, 2026 — South Africa's Portfolio Committee on Employment and Labour has officially opened public comment on the Employment Services Amendment Bill [B16-2026], a sweeping legislative overhaul that would impose stricter obligations on employers hiring foreign nationals and introduce penalties of up to R1 million for non-compliance .
Written submissions must be received by 6 November 2026 at 16:00. The Bill remains subject to the parliamentary process and has not yet been enacted .
What the Bill Proposes
The Bill amends the Employment Services Act of 2014 to introduce a comprehensive framework for regulating the employment of foreign nationals, aligning with the Immigration Act and the Refugees Act .
Key Employer Obligations
Before hiring a foreign national, employers would be required to:
Requirement | Details |
Verify Legal Status | Confirm the foreign national is legally entitled to work in South Africa |
Labour Market Test | Demonstrate that no suitably qualified South African citizen or permanent resident is available for the role |
Skills Transfer Plan | Prepare a written plan setting out how the foreign employee's expertise will be transferred to South Africans |
Equal Terms | Offer terms no less favourable than those applicable to comparable South African employees |
Record Retention | Maintain prescribed employment records for a specified period |
The Minister may exempt certain categories of employers where skills transfer plans are deemed impractical .
Tiered Penalty Regime
The Bill introduces substantially tougher penalties for employers found in contravention of provisions relating to the employment of foreign nationals :
Offence | Maximum Fine |
First Contravention | R100,000 |
Repeat Offence (within 3 years) | R200,000 |
Multiple Contraventions | R1 million or 10% of yearly revenue (whichever amount is larger) |
The Bill also proposes increasing the existing maximum fine under Schedule 3 of the Employment Services Act from R50,000 to R100,000 .
Critically, the proposed requirements and penalties would apply to both corporate employers and private households that employ foreign nationals, including families hiring domestic workers, gardeners, or nannies .
Quotas for Foreign Nationals
The Bill grants the Minister of Employment and Labour the authority, after consulting with the Employment Services Board, to set maximum quotas for hiring foreign nationals in particular economic sectors, occupational categories, or geographical regions.
An employer could exceed an applicable quota only if:
The post demands critical or scarce skills; or
The employer secures a formal exemption from the Minister
Cabinet has flagged agriculture, hospitality, tourism, and construction as sectors with particularly high levels of foreign employment .
Worker Protections
An important aspect of the Bill is that foreign nationals working in violation of the law would still have the right to pursue employment-related claims against their employers.
This measure aims to stop dishonest employers from taking advantage of workers' immigration status by offering wages below the legal minimum or enforcing inadequate working conditions. Labor inspectors and bargaining council agents would also have the authority to file claims on behalf of affected workers.
Government Position
The Department of Employment and Labour has described the Bill as a balanced approach that focuses on prioritizing South African job seekers while safeguarding migrant workers from exploitation.
"The Bill does not intend to strip migrant workers of their rights but to ensure that all workers are shielded from unfair labour practices and exploitation."
Minister of Employment and Labour Nomakhosazana Meth stated:
"It is crucial for employers to intentionally use ESSA [Employment Services South Africa] to hire South Africans and comply with the law by prioritizing South Africans and employing those legally residing in South Africa from other countries."
Key Dates
Milestone | Date |
Bill Introduced to Parliament | May 2026 |
Public Comment Opened | 18 September 2026 |
Submission Deadline | 6 November 2026 at 16:00 |
Submissions should be emailed to employmentservicesbill@parliament.gov.za (attention: Zolani Sakasa). Submitters wishing to make an oral presentation should indicate this in their written comments .
Quick Reference Summary
Aspect | Details |
Bill Name | Employment Services Amendment Bill [B16-2026] |
Purpose | Regulate employment of foreign nationals |
First Offence Fine | Up to R100,000 |
Repeat Offence Fine | Up to R200,000 |
Multiple Offences | Up to R1 million or 10% of turnover |
Applies To | Corporate employers and private households |
Comment Deadline | 6 November 2026 |
Status | Before Parliament; not yet enacted |
Official Resources
Resource | Link |
Parliament of South Africa – Bill Page | |
Portfolio Committee Call for Comments | |
Department of Employment and Labour |
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