SA Business Integrator Volume 12 I Issue 4 | Page 69

LABOUR AND MIGRATION
The law already applies Imran Mahomed and Taryn York of Cliffe Dekker Hofmeyr say intensified enforcement has not changed the underlying obligations imposed by the Immigration Act.
Employers must not employ an undocumented foreign national, someone whose status does not authorise employment, or a person on terms that conflict with the conditions of a visa.
“ What has changed is the intensity of enforcement,” they say. Coordinated inspections and prosecutions increase the likelihood that a documentation failure will interrupt ordinary operations.
Government has announced the phased recruitment of 10 000 labour inspectors and indicated that workplace operations will involve Employment and Labour, Home Affairs and the police. Compliance is therefore no longer simply an HR filing exercise. A failure can affect staffing, production, contracts and reputation.
Employers should also examine labour brokers, contractors and outsourced providers. The people involved may not appear on the company payroll, but non-compliance uncovered on its premises can still cause operational and reputational damage.
What the Bill would change The Employment Services Amendment Bill was introduced in Parliament on 29 May 2026. It has not become law, and no general quotas currently restrict the number of foreign nationals an employer may hire.
If enacted in its present form, the Bill would allow the Minister of Employment and Labour to set quotas by sector, occupation or geographical area. Before recruiting a foreign worker, an employer would also have to satisfy itself, in a prescribed manner, that no suitably qualified South African citizen, permanent resident, refugee or asylum seeker is available.
One arm of the state is making it easier to bring in needed expertise while another prepares stronger controls over foreign employment.”
The proposed civil penalties escalate sharply. The Labour Court could impose up to R100 000 for a first contravention, R200 000 for a repeat contravention within three years, and up to R1 million or 10 % of annual turnover for multiple contraventions. These should be distinguished from possible criminal exposure under existing immigration law.
Much of the effect will depend on regulations that do not yet exist. Quota levels, covered occupations, exemptions and the evidence required before recruiting abroad will determine whether the system targets exploitation accurately or merely adds friction to legitimate hiring.
Mahomed and York recommend that employers audit their workforces, model the effect of possible quotas and participate in public consultation. Preparing for a possible law does not mean applying restrictions that are not yet in force.
The scarce-skills contradiction South Africa also wants investment and skills that cannot always be found locally. Home Affairs has introduced a points-based approach to work visas and expanded the Trusted Employer Scheme to make corporate immigration more predictable for qualifying employers.
One arm of the state is making it easier to bring in needed expertise while another prepares stronger controls over foreign employment. The objectives need not conflict. A system can act against exploitation while facilitating scarce skills. The difficulty lies in making that distinction quickly and consistently.
A multinational choosing a regional base needs predictable visa decisions. Mines, technology companies and engineering projects may need expertise that cannot be assembled locally within project deadlines. Farms, restaurants, construction firms and smaller businesses may rely on migrant workers in occupations unlikely to appear on a critical-skills list.
Quotas could affect these employers very differently. Poorly designed restrictions might also push employment further into the informal economy without addressing the demand for labour or creating workable routes to regularisation. sabusinessintegrator. co. za 67