South African employers who repeatedly hire undocumented foreign workers could soon face fines reaching R1 million per employee under proposed ces to employment legislation. Deputy Labour Minister Jomo Sibiya announced the escalating penalty structure in a recent interview, signaling a major shift in how the government plans to tackle widespread non-compliance.
The numbers tell a troubling story. During the 2025/26 financial year, inspectors examined more than 300,000 businesses across the country. What they found wasn’t pretty. Workers earning below minimum wage, hazardous conditions, missing safety equipment, and employees without proper documentation turned up again and again.
How steep are the penalties? A first offence would cost R100,000, doubling to R200,000 for a second violation. Third-time offenders face the maximum million-rand penalty per undocumented worker. Currently, Johannesburg employers pay just R10,000 per violation.
The department’s 2,300 inspectors can’t possibly cover two million businesses effectively. Recognizing this gap, government plans to recruit 10,000 additional inspectors. Hospitality, manufacturing, agriculture and retail sectors will face the closest scrutiny, though enforcement efforts won’t stop there. Employers can’t claim ignorance anymore, they’re required to verify foreign nationals’ documents with Home Affairs before hiring.
You May Like
Leave a comment