South Africa Proposes New Rules on Employment of Foreign Workers

Key Point  

• South Africa introduced proposed legislation to regulate the employment of foreign nationals, including potential quotas, stricter employer requirements and enhanced enforcement. 

New Rules on Employment of Foreign Workers 

The South African government introduced the Employment Services Amendment Bill, 2026, which seeks to strengthen the regulation of employment services and establish a more structured framework for hiring foreign workers.  

New Employer Requirements 

Under the proposed changes, employers hiring foreign nationals would be required to: 

• Verify that the individual has valid authorization to work in South Africa 
• Confirm that no suitably qualified local candidates are available before hiring foreign workers 
• Develop skills transfer plans to support knowledge sharing with local employees 
• Ensure foreign workers receive terms and conditions no less favorable than those of local workers 

Introduction of Quotas 

The Bill empowers the Minister to: 

• Set maximum quotas for the employment of foreign nationals 
• Apply quotas by sector, occupation or region 
• Require employers to comply within defined timeframes 
• Small employers (generally those with fewer than 10 employees) may be excluded from quota requirements.  

Expanded Regulatory Authority 

The legislation would give the government broader powers to: 

• Issue detailed regulations on hiring foreign nationals 
• Require use of public or private employment services to recruit locally 
• Mandate record-keeping and compliance procedures 

Stronger Enforcement and Penalties 

The Bill introduces increased penalties for non-compliance, including: 

• Fines up to R100,000 for first violations 
• Escalating penalties for repeated offenses, potentially up to R1 million or 10% of turnover 

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