Business Report

R100,000 fines? How the Employment Services Amendment Bill could affect South African households

Yasmine Jacobs|Published
This is everything you need to know about the Employment Services Amendment Bill.

This is everything you need to know about the Employment Services Amendment Bill.

Image: File

The Employment Services Amendment Bill has been dominating the headlines and South Africans who employ domestic workers, gardeners, caregivers, drivers and other household staff are paying attention.

Why? Reports emerged of fines of up to R100,000 linked to the newly introduced Employment Services Amendment Bill, 2026, which is leaving more questions than answers. 

But what exactly is the Bill, and does it mean ordinary households could be penalised?

What is the Employment Services Amendment Bill?

The Employment Services Amendment Bill (B16-2026) was introduced in Parliament by the Minister of Employment and Labour in late May 2026.

The proposed law seeks to amend the Employment Services Act of 2014 and forms part of government's efforts to regulate labour migration, strengthen employment services and crack down on the illegal employment of foreign nationals.

It is also looking to regulate the employment of foreign nationals in South Africa, strengthening labour inspections and enforcement powers, allowing the Minister of Employment and Labour to introduce sector-specific or geographic limits on the employment of foreign nationals, expanding the role of public employment services to help employers recruit South African citizens and permanent residents first and increasing penalties for employers who violate labour and immigration laws.

The Bill is currently before Parliament and has not yet become law.

Why are domestic employers paying attention?

Much of the public concern comes from provisions that could impose fines on employers who hire foreign nationals who are not legally permitted to work in South Africa.

Under the proposed amendments, employers found to have unlawfully employed foreign nationals could face fines of up to R100,000 for a first offence, with higher penalties for repeat violations.

Because the legislation applies broadly to employers, the biggest concern is that it could potentially include private households that employ domestic workers, gardeners, nannies or caregivers.

Does this mean you cannot employ a foreign domestic worker?

No. It's worth noting that the Bill does not ban the employment of foreign nationals.

What it targets is the employment of people who do not have the legal right to work in South Africa. A foreign domestic worker who has the appropriate documentation and work authorisation would not automatically be affected.

The proposed law is aimed at employers who knowingly, or negligently, employ individuals who are undocumented or whose immigration status does not permit them to work.

What documents should households check?

If the Bill becomes law, households employing foreign nationals may need to be more diligent in verifying documentation.

Employers are advised to keep copies of South African ID documents for citizens, permanent residence permits, valid work visas, refugee or asylum documentation where applicable, employment contracts, proof of address and contact details and UIF registration records where required.

Employers should also ensure documents are still valid and have not expired.

What if your domestic worker has been with you for years?

Many households employ workers who have been with them for decades and may never have formally checked immigration documents.

The proposed legislation has raised concerns that employers may need to conduct fresh compliance checks on existing employees to ensure all paperwork remains valid. Labour law experts have advised employers to review employee records rather than wait for an inspection.

 Is the R100,000 fine automatic?

No. The Bill proposes a maximum fine that could be imposed by the Labour Court. It is not an automatic penalty issued on the spot.

Legal commentators have noted that courts would likely consider the circumstances of each case, including whether an employer made reasonable efforts to verify a worker's legal status.

What happens next?

The Employment Services Amendment Bill must still go through Parliament's legislative process before it can become law. This includes committee scrutiny, debates and voting by lawmakers before it can be signed by President Cyril Ramaphosa.

For now, households should not panic but should use the time to ensure that all employment records are in order and that any foreign nationals they employ are legally authorised to work in South Africa.

IOL