Employment Services Amendment Bill to Introduce R100,000 Fines for Non-Compliance

Posted 02 June 2026 Written by Acts Online
Category Labour

Brought to you by SAnews: The Department of Employment and Labour is accelerating the implementation of the National Labour Migration Policy and the Employment Services Amendment Bill to strengthen enforcement against the unlawful employment of foreign nationals and prioritise South African citizens for employment opportunities.

Under the proposed amendments to the Employment Services Act, No. 4 of 2014, the government intends to significantly increase the enforcement powers of labour inspectors and introduce harsher penalties for non-compliance. Employers found violating labour and immigration laws by employing undocumented foreign nationals will face fines of up to R100,000.

The Department of Employment and Labour has indicated that inspections are being intensified across high-risk sectors. Recent enforcement actions have targeted the following industries:

  • Construction: Joint operations have already identified significant compliance failures, including a single site in the Western Cape where 79 undocumented foreign nationals were found working.
  • Hospitality: Targeted inspections and sector engagements are underway to address unlawful employment practices.
  • Platform and Delivery Services: The department is collaborating with e-hailing and delivery companies to restructure recruitment processes in favour of local workers.

In terms of the draft National Labour Migration Policy, employers are expected to actively utilise the Employment Services South Africa (ESSA) database to recruit local candidates before seeking to employ foreign nationals. The policy framework seeks to balance the protection of domestic employment opportunities with the economy’s demand for critical and scarce skills, extending its regulatory reach to both the formal and informal sectors.

What this means for you, your business, or your clients

  • For yourself: No direct individual obligations; professional impact is channelled through advising employers on statutory compliance and risk mitigation.
  • For your business: Human resources and compliance departments must audit current employee rosters, verify the valid work visas of all foreign staff, and ensure recruitment processes align with the Employment Services South Africa (ESSA) database requirements to avoid potential fines of up to R100,000.
  • For your clients: Corporate clients, particularly in the construction, hospitality, and gig-economy sectors, must prepare for unannounced labour inspections by ensuring all employment contracts, identity documents, and work permits are fully compliant and readily accessible on-site.

Originally published at https://www.sanews.gov.za/south-africa/minister-meth-defends-push-prioritise-south-africans-jobs

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