Deputy Minister of Labour Jomo Sibiya stated that employers who systematically hire foreign nationals without documentation could face fines of up to one million rand for each such worker under proposed changes to South Africa's labour legislation.
In an interview with Newzroom Afrika, Sibiya reported that the proposed amendments to the Employment Services Act will introduce stricter sanctions for those who employ unregistered foreigners. He specified that the fine amount will increase: from 100,000 rand for the first offense, to 200,000 rand for the second, and up to 1 million rand for the third.
These changes are being promoted by the Department of Employment and Labour amid increased inspections, as Sibiya said non-compliance with labour standards is a widespread phenomenon. Sibiya noted: 'The hiring of illegal foreign immigrants in our country is widespread. We cannot deny this. We have evidence.'
Labour violations under close scrutiny
His statements came after a joint inspection in a Johannesburg centre, which revealed serious labour, health, and safety violations. Among the discovered problems were instances where workers were allegedly paid less than the minimum wage or worked without proper protective equipment.
Inspectors also found unsafe food handling and electrical hazards at a butcher shop, prompting the city to immediately close the establishment. Sibiya emphasized that the department has intensified its control measures to combat employers who ignore labour laws.
He added that 'this is now a matter of the day. We have been doing it practically before, but we have raised the level and increased the work we are doing to try to stop this non-compliance by employers in our country.' Sibiya also stated that 'the level of non-compliance in our country is very high.'
The department inspected over 300,000 businesses during the 2025/26 financial year, but its capacity is limited by the number of inspectors. Sibiya reported that 'we only have about 2300 inspectors who are supposed to check over two million businesses in our country.' Due to this, the government is recruiting 10,000 inspectors to increase its enforcement capabilities.
Priority sectors identified include hospitality, manufacturing, agriculture, and retail, although inspections were conducted across all sectors. Sibiya also noted the strengthening of control operations through collaboration with the Department of Home Affairs, the South African Police Service, and municipalities.
He stressed that 'our level of interaction has improved, as has our flexibility, speed, and efficiency that we have brought to our work, and the cooperation with the Department of Home Affairs and SAPS has made our work tangible.'
Sibiya mentioned that during last Friday's operations, inspectors discovered two unregistered citizens from Benin and four from Zimbabwe. Additionally, he mentioned an operation in Cape Town where 71 unregistered citizens were detained at one facility.
Employers are responsible for verifying the documents of foreign nationals through the Department of Home Affairs before hiring them. Sibiya stated: 'Employers are obliged to ensure that every time you hire non-South Africans, you must check their documents at the Department of Home Affairs.'
Currently, in Johannesburg, employers face a fine of 10,000 rand for each unregistered foreigner hired. Non-compliant businesses are not necessarily closed permanently. Sibiya explained: 'We close the business; we prohibit them from operating until they fix everything we told them they need to fix.'
According to Sibiya, the department must balance law enforcement with job protection so that businesses can continue to operate legally. He stated that 'we want to protect workers; workers must work in safe conditions, receive proper pay, and their labour rights must be protected,' but warned that companies failing to rectify violations may face permanent closure.