R100,000 fine for hiring a foreign worker? What the new Bill proposes as public comment opens - IOL
Employment and Labour Minister Nomakhosazana Meth Employment and Labour Minister Nomakhosazana Meth says the government is moving to tighten the rules around the hiring of migrant workers.
South Africans have until 6 November to weigh in on a bill that would put households on the hook for potential fines of up to R100,000 if they employ undocumented migrants.
The Portfolio Committee on Employment and Labour opened public comments on 18 September 2026 on the Employment Services Amendment Bill [B16-2026], an intervention proposed to sharply raise the proposed fines for anyone who employs a foreign national without the legal right to work, including families who hire domestic workers, gardeners or nannies.
The bill does not ban employing foreign nationals. It targets those unauthorised to work in South Africa.
Under the proposed tiered regime, the Labour Court could impose a fine of up to R100,000 per undocumented worker for a first contravention, R200,000 if there was a previous failure in the preceding three years, and the greater of R1 million or 10% of annual turnover for further repeats. The same rules would apply to private households as to companies.
Employing an undocumented foreign national is already a criminal offence under section 38 of the Immigration Act. The existing penalty is a fine or imprisonment of up to one year for a first offence, rising for subsequent convictions.
Government officials have argued that many employers simply pay the current relatively modest fines and continue the practice. The amendment is intended to close that gap by adding substantial civil penalties through the labour courts and giving labour inspectors stronger powers to check documentation.
Deputy Minister of Employment and Labour Jomo Sibiya previously defended the approach, saying the law does not distinguish between a factory floor and a private home: “Once you are an employer, you must abide by and comply with the laws of the Republic.”
President Cyril Ramaphosa has framed the package as part of a wider effort to prioritise South African jobseekers and tighten enforcement against illegal immigration.
Written submissions must be emailed to [email protected] (for the attention of Zolani Sakasa) by Friday, 6 November 2026 at 16:00. Submitters who want to make an oral presentation to the committee should say so in their written comments. The bill text is available on the Parliament website.
The committee has described public input as a “critical step” in shaping South Africa’s labour-migration framework. The bill would also allow the minister, after consultation, to set sector-specific quotas for foreign workers and require employers to verify that no suitable South African candidate is available before hiring a foreign national.
Employer sanctions for hiring people without work authorisation are common internationally, though the amounts and enforcement style vary.
South Africa’s proposed R100,000 first-offence figure sits toward the higher end of these ranges when converted, especially for a private household rather than a large firm. Whether that level is proportionate, enforceable in informal domestic settings, or likely to push work further underground is precisely the kind of question the public-comment process is meant to test.
The bill still has to pass both houses of Parliament and receive presidential assent. Until then, the R100,000 penalty remains a proposal, not current law. Households that already employ foreign nationals are being advised to keep copies of passports and work authorisations (including exemption permits, refugee documents or asylum papers that confer the right to work) and to treat verification as a standing duty rather than a future one.
Submissions close on 6 November 2026. Thereafter, the committee will consider the comments, hold public hearings and decide whether to amend the bill before it proceeds.
