SA: R100,000 Fines For Employing Foreigners Not Yet in Effect – Labour Expert

There is currently no new law in South Africa imposing fines of up to R100,000 or imprisonment for employing undocumented foreigners, despite recent reports suggesting such legislation came into effect on 30 June 2026.

This was said by Osborne Molatudi, Labour Law Expert and Managing Director of Molatudi Attorneys, during an interview on Newzroom Afrika over the weekend.

Mulatudi said confusion has arisen from proposals put forward by the Department of Employment and Labour to amend the Employment Services Act.

“What is currently applicable is the law as it stands,” he said. “What has caused confusion is that the government has put in place proposals to amend the Employment Services Act, which will then be the Employment Services Amendment Bill, and, once promulgated into law, it will then introduce new fines.”

Under the proposals, fines would increase significantly — ranging from R100,000 for a first offence to R200,000 for a second offence, and up to R1 million for repeat offenders. Criminal prosecution could also apply.

At present, the fine for employing an undocumented foreign national remains R10,000.

“There’s a proposal that perhaps these fines are not an impediment enough. They do not discourage employers from employing undocumented foreign nationals,” Mulatudi said. “Perhaps this is the time to really consider increasing those fines.”

Until any amendment is passed, employers must still comply with existing immigration laws.

“They must make sure that whoever they intend to employ has the necessary documents and give that person the legal right to work in this country,” Mulatudi explained. “That obligation extends to the foreign national as well.”

He noted that foreign nationals may only be employed for work deemed a “much-needed labour” or a “scarce skill” in South Africa. Those requirements remain in place.

The employment of undocumented domestic workers has become “a thorny issue” and a policy concern, Mulatudi said.

While domestic work is not explicitly listed as a scarce skill, it could potentially fall under “needed labour”.

However, he added, “The outcry is that there are South Africans, unemployed South Africans who can do the same job that is done by those domestic workers who happen to be foreign nationals.”

The government is expected to engage stakeholders further on the issue.

Mulatudi said labour inspectors can arrive at private homes to check on employees, without prior announcement.

“We are told that the government has employed an additional 10,000 labour inspectors to conduct this inspection,” he said.

He urged homeowners to ensure domestic workers, a category that includes cooks, gardeners and nannies, have the necessary documentation.

“It’s very important that they make sure that they do have those necessary papers to avoid being caught out by the labour inspectors.”

Non-compliance could result in a compliance notice, followed by fines for household owners. Domestic workers found to be undocumented may face detention, fines or even imprisonment, depending on the extent of the contravention.