South African employers who hire undocumented foreign nationals could face fines of up to R1 million (about $61,000) under proposed changes to the country’s employment laws as the government moves to curb illegal hiring and prioritise jobs for citizens.
The Employment Services Amendment Bill, which is open for public comment until 6 November, would introduce some of the toughest sanctions yet against businesses and individuals found employing foreign nationals without proper documentation.
Under the proposed law, first-time offenders would face fines of R100,000 per undocumented worker, rising to R200,000 for a second offence within three years.
Repeat offenders could be fined up to R1 million or 10 percent of annual turnover while labour inspectors would receive powers to conduct unannounced workplace inspections and audit compliance records.
The bill, introduced by Employment and Labour Minister Nomakhosazana Meth, would also allow the government to impose sector-specific quotas on foreign workers and require employers to prove they were unable to find suitable South African candidates before recruiting from abroad.
Businesses seeking to employ foreign nationals would furthermore have to develop skills-transfer programmes demonstrating how foreign workers will train and mentor South Africans.
The proposed reforms target a long-running problem in South Africa where authorities, labour unions and political parties have repeatedly accused some employers of hiring undocumented migrants to reduce labour costs and bypass employment regulations.
Undocumented foreign workers are often concentrated in sectors such as agriculture, construction, hospitality, domestic work and small-scale manufacturing where labour-intensive operations create demand for low-cost workers.
Employers have frequently been accused of preferring undocumented migrants because they are perceived as more willing to accept lower wages, longer hours and fewer workplace protections than local workers.
The issue has become increasingly sensitive against a backdrop of persistently high unemployment.
South Africa has one of the highest youth unemployment rates in the world, fuelling public concerns that illegal employment practices undermine job prospects for citizens and place downward pressure on wages.
The legislation would not apply to refugees, asylum seekers and permanent residents who are specifically excluded from the definition of ‘foreign nationals” under the bill and would retain employment protections under existing laws.
JN/APA