South Africa's Employment Services Amendment Bill, introduced to Parliament this week, proposes fines of up to R1 million or 10% of annual turnover for employers repeatedly found to have hired foreign nationals without first proving no suitably qualified South African citizen, permanent resident, refugee or asylum seeker was available for the role.

What does the Bill change?

The draft law amends the Employment Services Act of 2014 and extends its application to foreign nationals, workers, and private employment agencies that do not operate for profit. It also brings the Employment Services Act into closer alignment with the Immigration Act and the Refugees Act.

The Bill grants the Minister of Employment and Labour additional powers to issue regulations on labour migration and the employment of foreign workers. It expands the role of the Employment Services Board to strengthen policy oversight and implementation, and provides for the establishment and governance of Supported Employment Enterprises intended to create work for designated groups of workers.

The Minister may grant exemptions from certain requirements of the Act and issue further regulations where necessary.

How steep are the new penalties?

Employers who breach the new rules face escalating fines imposed by the Labour Court:

• First offence: up to R100,000
• Repeat offence within three years: up to R200,000
• Multiple contraventions: up to R1 million, or 10% of annual turnover, whichever applies

Who is affected?

Before recruiting a foreign worker, employers must satisfy themselves, in a manner set by future regulation, that no suitably qualified South African citizen, permanent resident, refugee or asylum seeker is available for the position. The change targets both employers and private employment agencies.

Government says the framework is meant to ensure that foreign recruitment happens only where genuine skills shortages exist, while creating stronger deterrents against unlawful employment of foreign nationals.

What enforcement is already underway?

The Bill lands alongside an existing enforcement push. President Cyril Ramaphosa, addressing the nation on Sunday, said authorities can no longer "allow employers found guilty of exploiting undocumented workers to simply pay fines and continue operating without consequence."

The Department of Employment and Labour has begun the phased recruitment of 10,000 labour inspectors during the current financial year. Inspections will run as joint operations involving the South African Police Service, the Department of Home Affairs, and the Department of Employment and Labour.

What has the President said?

Ramaphosa said illegal immigration "continues to undermine efforts to create decent jobs, protect labour standards and expand employment opportunities for South Africans." He added that some employers deliberately hire undocumented migrants because their vulnerable legal status makes it difficult for them to challenge unfair treatment in the workplace.

Investigations, he said, have uncovered workplaces where undocumented foreign nationals face poor conditions, low wages and excessive working hours without proper compensation. He warned that employers who knowingly hire undocumented workers are not only breaking the law but are also undermining fair competition and weakening labour protections for all workers.

What happens next?

The Bill sits before Parliament. It will go through committee scrutiny and opportunities for public participation before any amendment can be enacted into law. The Department of Employment and Labour has published the draft text on its website.

The new measures form part of government's Comprehensive Approach for Migration Management.