Government Moves To Tighten Rules on Hiring Foreign Workers With Tougher Penalties Planned

• Government has tabled a new law in Parliament to tighten rules on hiring foreign workers
• Employers must first show no suitable local candidates are available before hiring foreign nationals
• Plans include boosting labour inspections and increasing enforcement action against companies breaking employment laws

Government has tabled a new law in Parliament that could change how companies hire foreign workers in South Africa and tighten enforcement against illegal employment practices.

The Employment Services Amendment Bill aims to update the 2014 law and broaden its scope to include foreign nationals, workers, and some non-profit employment agencies. According to a June 10 report by the South African Government News Agency, it also brings South Africa’s labour migration rules in line with immigration and refugee laws.

A major focus of the Bill is stricter control over the hiring of foreign workers. Employers will first need to prove that no suitably qualified South Africans, permanent residents, refugees, or asylum seekers are available before bringing in a foreign worker. The Bill begins by stating:

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"To amend the Employment Services Act, 2014, so as to insert and amend certain definitions in order to clarify expressions in the Act and extend the scope of the Act to cover foreign nationals, private employment agencies not operating for gain, and workers..."

Companies that ignore the rules could face heavy penalties, with fines starting at R100 000 for a first offence, rising to R200 000 for repeat offences, and going up to R1 million or 10% of annual turnover for serious or repeated violations.

Government says the goal is to ensure foreign workers are only hired where there is a real skills shortage, while clamping down on illegal employment practices.

The Bill further proposes stronger inspections and enforcement powers, including the ability to act more firmly against non-compliant employers and agencies. Another part of the plan is the creation of Supported Employment Enterprises, which are meant to help create job opportunities for specific groups of workers.

The legislation is still being processed in Parliament and will go through committee discussions and public input before becoming law.

Ramaphosa signals tougher action on illegal employment

The move comes as government steps up efforts against employers hiring undocumented foreign nationals. President Cyril Ramaphosa has warned that such practices will face tougher consequences, saying they undermine job creation and labour protections for South Africans.

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He said some employers exploit undocumented workers because their legal status makes them less likely to challenge poor pay and bad working conditions.

Government also plans to hire 10 000 labour inspectors to boost enforcement capacity and bring a tougher approach to labour law enforcement.

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Source: Briefly News