South Africa: New Law Would Increase Locals in Labor Market

The South African Deputy Minister of Employment and Labour has proposed new amendments to the Employment Services Act, which will be presented to Parliament for consideration. If enacted, the proposed amendments would introduce several new measures relating to the employment of foreign nationals, including a mandatory requirement for employers to implement skills transfer plans for positions occupied by foreign nationals, although the Minister may exempt certain categories of employers where such plans are deemed impractical. The amendments would also empower the Minister to establish sector-, occupation- and location-specific quotas for the employment of foreign nationals. In addition, the proposed legislation would introduce new penalties for employers found to be in contravention of provisions relating to the employment of foreign nationals, including fines of ZAR 100,000 for a first offense, ZAR 200,000 for a second offense within three years of the first offence, and an amount more than ZAR 1 million or 10% of the employer's annual turnover for the previous financial year for repeated offences thereafter. Accordingly, employers that hire foreign nationals should ensure their workforce and immigration compliance processes are in order if these changes are implemented. 

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen.