News & Insights

Colleagues,

In this edition we look into the newly proposed amendment to the Employment Services Bill, Act 4 of 2014. The main purpose of this Act is aimed at improving access to employment, regulating employment services, and supporting job creation.

However due to an increased focus on workplace compliance specifically with a focus on foreign nationals and due to the expected increase of blitz inspections , the below amendments have been proposed placing a much bigger compliance requirement on employers, when it comes to the employment of foreign nationals.

Although not legislated as yet the proposed amendment bill was introduced to parliament on the 13th of August 2026. Lets look at the key proposed employer obligations,

1. Prove that no suitable South African is available
Before employing a foreign national, an employer would be required to satisfy itself, in a prescribed manner, that there are no suitably qualified South African citizens, permanent residents, refugees, or asylum seekers available to fill the vacancy.

The Practical impact:
Employers will likely need to demonstrate genuine recruitment efforts.
Recruitment records may need to show why local candidates were unsuitable.
This places the burden of proof on the employer.

2. Verify the foreign national's right to work
Employers would have a statutory obligation to:
Confirm that the foreign national is legally entitled to work in South Africa.
Confirm that the visa or permit specifically authorises the type of work being performed.

The Practical impact:
A passport alone will not be sufficient.
Employers must verify the validity and conditions of work visas and permits.
Ongoing monitoring of permit expiries will become essential.

3. Maintain detailed records
Employers would be required to retain copies of:
Visas and work authorisations.

Other prescribed documentation relating to the employment of foreign nationals.

The Practical impact:
Personnel files will need stronger compliance controls.
Employers should be prepared for labour inspections and audits.
Keep in mind that ONLY inspectors who can provide the relevant identification and certificate of appointment may access the workplace, as they are mandated in law to access your premises. No political party , ministerial task team , minister , member of parliament , media houses or similar may access the workplace.

4. Develop skills transfer plans
A major new requirement is the obligation to prepare a skills transfer plan for positions occupied by foreign nationals, unless exempted by regulation.

The Practical impact:
Employers may need to show how South African employees will acquire the skills held by foreign workers.
This is particularly relevant where foreign nationals are employed because of scarce or specialised skills.

5. Equal employment conditions
Employers would be prohibited from employing foreign nationals on employment terms that are inferior to those applicable to South Africans performing comparable work.

The Practical impact:
Foreign workers cannot be used as a low-cost labour alternative.
Wage rates, benefits, and employment conditions must be comparable.

6. Possible sectoral quotas
The Bill would empower the Minister to introduce regulations setting limits or quotas on the number or percentage of foreign nationals that may be employed in specific sectors, occupations, or regions.

The Practical impact:
Sectors such as construction, hospitality, agriculture, logistics, and other labour-intensive industries could face restrictions.
Workforce planning may need to account for sector-specific caps.

7. Increased inspections and enforcement

The amendments are intended to strengthen cooperation between:
The Department of Employment and Labour,
The Department of Home Affairs, and
Labour inspectors.
Employers can expect more inspections and greater scrutiny of immigration documents.

8. Significantly higher penalties

The Bill proposes substantial penalties for non-compliant employers. Reported proposals include:
Up to R100,000 for a first contravention,
Up to R200,000 for repeat offences,
In serious cases, fines of up to R1 million or 10% of annual turnover.
What employers should do now

Even though the amendments are not yet law, employers should consider:
Auditing all foreign employee files.
Verifying visas and work permits.
Tracking permit expiry dates.
Documenting recruitment efforts for South African candidates.
Reviewing remuneration practices to ensure parity.
Identifying positions that may require future skills-transfer plans.
Monitoring developments on sectoral quota regulations.
As always we are only a phone call away, contact us for expert guidance.