Employers Warned As SA Plans Tough New Foreign Worker Employment Rules
South African employers could face fines of up to R1 million for repeatedly employing foreign nationals who do not have the legal right to work under a proposed new employment law. The Employment Services Amendment Bill introduces escalating penalties and could force businesses to keep a much closer watch on foreign workers’ visas, permits and passports.
BusinessTech reported on 6 July 2026 that the proposed law would shift more responsibility onto employers to ensure foreign workers remain compliant throughout their employment.
R1 Million Fine Proposed For Repeat Offenders
Lee Masuku, Senior Associate in Employment Law Practice at Cliffe Dekker Hofmeyr, said penalties would increase depending on previous contraventions.
A first contravention could attract a fine of up to R100,000. A second contravention within three years could cost an employer up to R200,000.
Masuku said repeat offenders could face far steeper penalties.
“R1 million or 10% of an employer’s turnover should there be two or more previous contraventions.”
However, she said the proposed fines were only part of the wider changes facing employers.
“The key issue is really not so much the size of the proposed penalties, but rather the bigger shift of employers no longer treating foreign national employment as a once-off immigration check.”
Employers Could Face Ongoing Foreign Worker Checks
Masuku explained that businesses would need to continuously monitor whether foreign employees have the legal right to work in South Africa and in their specific jobs.
Visas, permits and passports can expire. Employers may therefore need systems to track expiry dates and ensure documents are renewed.
Masuku said:
“The obligation already exists under the Immigration Act. Employers already face potential criminal liability if they fail to ensure foreign employees have the legal right to work.”
The proposed bill would add civil penalties to existing obligations.
Masuku said employers who could show a “good faith effort” to verify documents and keep records would be in a stronger position.
Foreign Worker Quotas Could Also Affect Employers
Agriculture, hospitality and platform-based mobility and delivery services could be among the sectors most affected if the bill becomes law.
The proposed legislation also gives the minister powers to introduce foreign worker quotas in certain sectors.
Masuku said employers should conduct skills audits and examine their workforce composition. Businesses should also keep detailed visa verification records and be able to show why certain skills cannot readily be sourced from South African workers.
The proposed changes mean employers may have to treat foreign worker compliance as an ongoing workplace responsibility rather than a single check made when an employee is hired.