SA Moves to Tighten Rules for Employers of Undocumented Foreign Workers, Including Domestic Workers
- South Africa's Employment Services Amendment Bill introduces steep fines for employers who hire undocumented foreign workers
- Employers who underpay or skip UIF and Compensation Fund registration could face penalties of up to R1 million or jail time
- Domestic workers employed illegally will still be entitled to claim the national minimum wage under the proposed law
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South Africans who employ domestic workers need to take note of sweeping changes coming to the country's labour laws. A new bill has been tabled in Parliament that could affect private households across the country, not just large businesses.
The Employment Services Amendment Bill proposes significant penalties for anyone found to be employing undocumented foreign nationals. A first offence carries a fine of R100,000. Repeat violations could result in fines of up to R1 million, or 10% of a business's annual turnover, and even a prison sentence.
What the bill means for private households
Many private households have historically employed undocumented foreign workers under the assumption that doing so placed them outside the reach of South Africa's labour legislation. The new bill directly addresses this loophole.
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Under Section 12D of the bill, an illegally employed worker retains the right to claim any benefit owed under South African labour law. This includes entitlement to the national minimum wage, UIF contributions, and Compensation Fund registration. Labour inspectors are empowered to pursue these claims on behalf of workers who are unable to do so themselves.
The Department of Employment and Labour said the provision:
"seeks to prevent unscrupulous employers from employing foreign nationals on terms and conditions of employment that are inferior to those provided for by labour legislation and collective agreements."
This means employers could face a double liability: fines for hiring an undocumented worker in the first place, and additional claims for failing to meet legal employment standards during that person's time of employment.
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When the bill becomes law
The bill received Cabinet approval and was gazetted in late May 2026. It was handed to the Portfolio Committee on Employment and Labour in August, and public comment opened in September.
Stakeholders have until 6 November 2026 to submit their views. Written submissions should be addressed to the Portfolio Committee on Employment and Labour, for the attention of Mr Zolani Sakasa, at employmentservicesbill@parliament.gov.za.
The bill also proposes sector-specific quotas for the employment of foreign nationals, aiming to protect jobs for South African citizens while establishing a clearer legislative framework for labour migration.
Read the full article here.
More Briefly News stories on domestic workers
- Pretoria-based Lindiwe Shibambo went from working as a domestic worker to building Maid4U, a R50 million business bringing structure and dignity to the sector.
- The National Minimum Wage Commission's consultation may boost South Africa's domestic workers' hourly wage above R31.56 for 2027 amid rising inflation.
- A domestic worker wins R1.8 million death benefit after a pension fund dispute, as the Pension Funds Adjudicator rules in her favour against the executor's challenge.
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Source: Briefly News
