South African employers may need to rethink how they recruit and manage foreign nationals if the proposed Employment Services Amendment Bill becomes law.

The Employment Services Amendment Bill [B16–2026] was introduced in Parliament on 29 May 2026 and is currently going through the parliamentary process. Public comments are now open, with submissions due by 16:00 on Friday, 6 November 2026.

Importantly, the Bill is not yet law. If passed, it would only come into operation on a date proclaimed by the President.

So, what could it mean for employers?


New responsibilities when employing foreign nationals

The proposed changes introduce a new framework specifically dealing with the employment of foreign nationals.

Under the Bill, employers would need to:

  • Confirm that a foreign national is legally permitted to work in South Africa.
  • Confirm that the person is authorised to perform the specific work they are being employed to do.
  • Establish, in the prescribed manner, whether people in South Africa with the necessary skills are available before recruiting a foreign national.
  • Prepare a skills transfer plan for positions occupied by foreign nationals, unless an applicable exemption is made.
  • Provide employment conditions that are not less favourable than those offered to South African citizens.
  • Keep copies of relevant visas, permits and other documents proving the person's right to work.

This means employers may need stronger documentation around their recruitment decisions—not simply the employee's work permit or visa.


Foreign worker quotas could be introduced

Another significant proposal is the introduction of quotas for foreign nationals.

The Minister of Employment and Labour could, after consulting the Employment Services Board, set maximum quotas for foreign nationals in particular:

  • Sectors
  • Occupational categories
  • Regions or geographical areas
  • Workforces or occupational categories within an employer

Before a quota is introduced, a draft notice must be published and interested parties must have at least 30 days to comment.

The Bill also provides for employers to apply for an exemption from an applicable quota, subject to prescribed requirements and supporting documentation.

Employers should therefore keep an eye on future regulations and quota notices rather than waiting until a specific quota affects their workforce.


What about small businesses?

The Bill states that quota notices must exclude small employers. Unless a future notice provides otherwise, this means a private-sector employer with fewer than 10 employees, subject to conditions relating to its business structure.

This should not be confused with a blanket exemption from the Bill. Other proposed requirements, such as verifying the right to work and retaining supporting documents, would still need to be considered.


Skills transfer could become part of workforce planning

One of the proposals employers should pay particular attention to is the skills transfer plan.

Where a foreign national is employed, the employer would generally need to prepare a plan for transferring relevant skills, unless the Minister determines that the requirement does not apply to a particular category of employer, employee or worker.

For employers, this could mean looking beyond simply filling a skills gap and considering how knowledge and expertise can be developed within the existing workforce.


Foreign workers would still have employment rights

The Bill also makes it clear that a worker's employment rights do not simply disappear because their employment may have been in contravention of the proposed requirements.

A worker could still enforce claims arising from employment legislation, a collective agreement or their contract.

Employers should therefore avoid treating immigration compliance and labour-law compliance as separate issues. Both need to be managed as part of the employment relationship.


Penalties could increase significantly

The proposed amendments also introduce stronger penalties for certain contraventions.

For breaches relating to the proposed foreign-national employment requirements, quotas or unauthorised work, the Labour Court could impose fines of up to:

First contravention: R100 000
Previous contravention within three years: R200 000
Two or more previous contraventions: The greater of R1 million or 10% of the employer's turnover in the previous financial year.

The Bill also proposes increasing the general maximum fine for certain listed contraventions from R50 000 to R100 000.

These are proposed penalties, not penalties currently imposed under a law that has already commenced.


What should employers do now?

There is no need to panic—but there is value in preparing.

Employers can start by reviewing:

1. Your foreign-national employee records
Check that relevant visas, permits and supporting documents are current and properly retained.

2. Job responsibilities
Make sure the work being performed matches the employee's authorisation to work.

3. Recruitment records
Keep a clear record of how vacancies were advertised, who applied and why candidates were selected or not selected.

4. Skills gaps
Identify positions where specialist or scarce skills are currently being sourced internationally.

5. Workforce planning
Consider how your organisation could develop local skills and transfer knowledge where foreign nationals occupy specialist roles.

6. HR and compliance processes
Make sure HR, recruitment and management teams understand the proposed changes and know where employee documentation is stored.


The bottom line for employers

The Employment Services Amendment Bill is still moving through the legislative process, and important details are expected to be shaped through regulations and future notices.

For now, employers should stay informed, review their current processes and make sure their employment records are in order.

The Portfolio Committee on Employment and Labour is currently inviting public input. Written submissions must be sent to employmentservicesbill@parliament.gov.za by 16:00 on Friday, 6 November 2026.


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