Employers who hire undocumented foreign nationals could face much heavier penalties if the Employment Services Amendment Bill becomes law, with proposed fines rising from R10,000 to as much as R1 million per worker.
The Department of Employment and Labour is proposing fines of R100,000 per undocumented foreign national for a first offence, R200,000 for a second offence and up to R1 million or 10% of gross income for a third offence.
The Bill is still before Parliament.
However, the proposed changes come as the government increases workplace inspections and strengthens cooperation between Employment and Labour, Home Affairs and SAPS.
Immigration lawyer Aadil Wadee of Xpatweb said employers should not wait for the Bill to be passed before checking their compliance.
“The scary part for a lot of employers out there at the moment is regarding the fines going anywhere from R100 000 to R1 million,” Wadee said.
Wadee urged employers to check their compliance because existing immigration laws can also result in fines or imprisonment.
“The fact of the matter is you were supposed to follow the route which is laid out in the Immigration Act itself,” he said.
Bigger penalties, bigger risk
The proposed increase could put additional financial pressure on businesses, especially those operating with tight margins.
Deputy Labour Minister Jomo Sibiya said employers in Johannesburg currently face a R10,000 fine per undocumented foreign national. A business employing 10 undocumented workers could therefore face R100,000 in fines under the current system.
Under the proposed changes, a first offence could result in a R100,000 fine per undocumented worker.
A third offence could carry a fine of up to R1 million per undocumented worker or 10% of the company’s gross income, together with a criminal case.
“We have taken up the fines to one hundred thousand per illegal foreign immigrant in each and every employer. If you have employed 10, it’s going to cost you a million rand,” Sibiya said.
A large fine could also mean less money available for stock, wages, rent or business expansion.
Employers must check documents
The proposed changes will place greater responsibility on employers to make sure foreign workers are legally registered to work in South Africa.
The department says employers would need to verify that foreign nationals have the correct documentation, show that efforts were made to recruit suitably qualified South Africans and keep prescribed employment records.
Wadee said simply seeing a visa or permit is not enough.
“Just because they have a visa doesn’t mean they’re here legally,” he said.
Employers should check whether the document is genuine and whether its conditions allow the person to perform the job they have been hired to do.
Employers can request formal verification through Home Affairs or use professional services to check documents.
Sibiya said businesses that need foreign workers because of a skills shortage must follow the correct process and apply to the Department of Employment and Labour.
Inspections are increasing
The proposed penalties come as the government steps up workplace inspections across the country.
More than 300,000 businesses were inspected during the 2025/26 financial year, according to the Department of Employment and Labour.
Sibiya said the department has about 2,300 inspectors covering more than two million businesses and is recruiting 10,000 additional inspectors to strengthen enforcement.
Recent inspections have involved Employment and Labour, Home Affairs, SAPS and municipalities. Inspectors are also finding other workplace violations, including workers being paid below the minimum wage and unsafe working conditions.
Businesses found to be non-compliant can be stopped from operating until they correct the problems.
