On 7 June 2026, President Cyril Ramaphosa ("the President") addressed the nation on matters relating to migration and illegal immigration. During his address, the President highlighted the challenges posed by illegal immigration and the employment of undocumented workers in South Africa.

The President further advised that the Employment Services Amendment Bill has been approved by Cabinet for introduction to Parliament. The Bill will empower the Minister to prescribe quotas for the employment of foreign nationals within specific economic sectors and occupational categories.

In addition, Government has finalised the National Labour Migration Policy, which proposes maximum quotas for the employment of documented foreign nationals and provides for stricter enforcement measures against employers who hire undocumented workers. The Department of Employment and Labour has increased the number of labour inspectors for the new financial year and has indicated its intention to impose harsher penalties, including possible imprisonment, for violations of the Immigration Act. Fines of up to R1 million may be imposed for non-compliance with the relevant legislation.

For further information, please refer to the following:
Presidency Address
News24 Article

Employer Obligations in Terms of the Immigration Act
In terms of the Immigration Act, 2002 (Act No. 13 of 2002), employers are prohibited from employing a foreign national who do not possess a valid work visa, critical skills visa, general work visa, business visa, permanent residence permit, or any other authorisation permitting employment in South Africa.

Employers must ensure that:

• Every foreign national employed possesses a valid permit or visa authorising employment in South Africa.

• Copies of all relevant immigration documentation are obtained and retained on the employee's personnel file.

• The validity of permits and visas is monitored, and renewals are obtained prior to expiry.

• Foreign nationals are employed only in positions and under conditions consistent with the authorisations granted by their visas or permits.

• Any changes in employment status are reviewed to ensure continued compliance with immigration legislation.
  

Consequences of Non-Compliance
Failure to comply with the Immigration Act may result in:

• Administrative penalties and fines imposed by the Department of Home Affairs.
  

• Criminal prosecution of the employer and responsible individuals.

• Reputational damage to the employer.

• Disruption to operations resulting from investigations or enforcement actions.

• The deportation of foreign nationals found to be working unlawfully.
  

Penalties
An employer who knowingly employs an illegal foreign national may be liable for substantial fines and, in serious cases, imprisonment, as prescribed by the Immigration Act and its regulations. Repeat offences may attract more severe penalties.

Recommendations
Employers must implement a formal process for verifying and monitoring immigration documentation for all foreign national employees and conduct periodic audits to ensure ongoing compliance with applicable legislation..

Strict adherence to South African immigration laws is essential to protect employers from legal, financial, and operational risks. Employers must take proactive steps to ensure that all foreign nationals employed are legally authorised to work in South Africa at all times.

Zimbabwean Exemption Permit Holders
Employees currently benefiting from the Zimbabwean exemption arrangements valid until 28 May 2027 are also required to provide supporting documentation outlining their intended course of action regarding the renewal or regularisation of their work authorisation status to the employers.

For further information, please refer to the following:
Extension of Validity of Exemptions granted in terms of Section 31(2)(b) of the Immigration Act, 2002 (Act NO. 13 of 2002)

In conclusion, it is vital to understand the implications of the above if foreign nationals are in the employ of your scheme.

Please feel free to contact us if you have any queries in this regard.

By Kelly Fillis, Certified Payroll Practitioner