labour department

The South African government is under increasing pressure to fast-track the Employment Services Amendment Bill and the Draft National Labour Migration Policy. This legislative push comes as public protests intensify over allegations that foreign nationals, both documented and undocumented, are displacing local workers in the labour market.

Employment and Labour Minister Nomakhosazana Meth officially tabled the Bill in the National Assembly this past Friday. The proposed legislation seeks to tighten the regulation of foreign labour, granting the minister authority to set specific quotas by sector, occupation, or region.

Did You Know? President Cyril Ramaphosa has previously pledged to deploy 10,000 additional labour inspectors to enforce compliance with the nation’s labour and immigration laws.

Legislative Intent and Business Impact

The Bill, which amends the Employment Services Act of 2014, mandates that employers prioritize South African citizens and permanent residents. Companies seeking to hire foreign nationals would be required to verify that no local skills are available and implement mandatory skills transfer plans for local staff. Exemptions are currently outlined for tiny businesses, critical skill categories, and instances involving ministerial waivers.

Complementing these measures, the Draft National Labour Migration Policy targets sectors such as hospitality, retail, logistics, and construction. It also proposes amendments to the Small Business Act of 1996 to restrict foreign nationals from establishing small-to-medium enterprises or trading in designated areas, a move intended to address concerns regarding municipal outsourcing contracts in fields like security and cleaning.

Expert Insight: The Complexity of Enforcement

Expert Insight: The proposed transition to a quota-based system introduces significant operational questions. As employment expert Henry Rossouw noted, the uncertainty surrounding whether these quotas will apply retroactively to current employees or only to future hires creates a complex environment for both employers and foreign workers, potentially complicating implementation once the legislation is enacted.

Political and Social Context

The migration issue has emerged as a focal point ahead of the 4 November local government elections. Political sentiment remains divided: while the ANC and EFF have condemned civil society-led removal campaigns, parties including ActionSA, the Umkhonto weSizwe Party, the African Transformation Movement, and the United Democratic Movement have expressed explicit opposition to undocumented migration.

Tensions are further exacerbated by the civil society group “March and March,” which has issued a 30 June deadline for undocumented migrants to leave the country. While some nations, such as Ghana, have begun the process of repatriating their citizens, and Nigeria has announced similar intentions, the response from Southern African Development Community (SADC) neighbors—who represent the largest source of undocumented migrants in the country—remains silent.

As the debate continues, the government may face further challenges in managing international relations, particularly as some Nigerian officials have threatened potential retaliation in response to forced removals.

Frequently Asked Questions

What does the Employment Services Amendment Bill propose for employers?
The Bill requires employers to prioritize South African citizens and permanent residents. If a foreign national is hired, the employer must ensure no local skills are available and implement a skills transfer plan for local employees.

How does the new policy affect foreign-owned businesses?
The policy intends to amend the Small Business Act to limit the ability of foreign nationals to establish small, medium, and micro-sized enterprises or trade in designated areas.

What is the status of the 30 June deadline?
The civil society group “March and March” has set this date for undocumented migrants to leave the country voluntarily, threatening forced removal if the deadline is not met.

How do you believe the proposed quota system will impact the current labour landscape in your local community?