Employment Services Amendment Bill: the documents employers must start checking now

A proposed change to South Africa’s employment rules is pushing employers to tighten hiring checks, especially for foreign nationals. The Employment Services Amendment Bill, introduced in Parliament in late May, would increase enforcement powers for labour inspectors and introduce tougher penalties for non-compliance.

What the Bill would do

The Bill is part of a broader government effort to crack down on illegal employment and undocumented workers. It would expand the powers of labour inspectors and increase enforcement across sectors that frequently employ migrant labour, including hospitality, construction, agriculture, retail and delivery services.

Fines and tighter hiring rules

Under the proposed amendments, employers who knowingly employ undocumented foreign nationals or fail to comply with labour migration rules could face fines of up to R100,000. The Bill also proposes stronger regulation of foreign national hiring, including possible sector-specific quotas and stricter recruitment processes to prioritise South African citizens and permanent residents. The Bill has not yet become law.

Documents employers should check and keep on file

Employers are expected to verify that employees, particularly foreign nationals, are legally allowed to work in South Africa. The article lists documents businesses should request and retain:

• South African ID documents or smart ID cards for citizens
• Permanent residence permits
• Valid passports
• Work visas or critical skills visas
• Asylum seeker permits
• Refugee status documents
• Proof that visa conditions allow employment
• Employment contracts and payroll records

The proposed amendments emphasise that employers should keep proper records and be able to present them during inspections.

Practical checks employers should make

Employers are warned against accepting a passport alone as proof of a legal right to work. The source advises checking the following:

• Whether the visa is still valid
• Whether the visa specifically permits employment
• Expiry dates on permits
• Whether the worker is employed in the same role listed on the visa
• Whether documents appear altered or fraudulent

Businesses are encouraged to re-check documents regularly rather than only at hiring. The government has suggested that labour inspections will intensify in industries that frequently employ migrant labour.

Existing obligations and record retention

Under the existing Immigration Act, employers already have a legal obligation to make a “good faith effort” to ensure a foreign national is legally allowed to work in South Africa. The source also notes it is advisable to keep employment records for at least two years after employment ends.

Steps companies are advised to take

While the Bill is still pending, companies are advised to:

• Audit all employee records
• Ensure copies of permits and visas are stored securely
• Train HR staff to identify invalid documentation
• Track visa expiry dates
• Prepare for unannounced labour inspections

This article is based on reporting from IOL.