New job hiring laws planned for South Africa – what you should know

President Cyril Ramaphosa’s cabinet has approved the draft national labour migration policy and the draft Employment Services Amendment Bill (ESAB) for public comment.

The policy forms part of the planned clampdown on the hiring of foreign workers, with the government identifying several business sectors that it feels gives preference to foreign workers over local hires.

“The draft national labour migration policy provides a framework and the legal basis to regulate the extent to which employers can employ foreign nationals in their establishments while protecting the rights of migrants. The policy provides the basis for the proposed Employment Services Amendment Bill,” cabinet said.

“Cabinet has approved that the Department of Employment and Labour can commence with public consultation on the policy, which will afford citizens and relevant stakeholders the opportunity to make inputs into the policy of the country.”

About three million of South Africa’s 60 million residents are migrants, according to the national statistics agency, with many attracted by the prospect of finding work in the continent’s most-industrialized economy.

But jobs remain in short supply for the unskilled, with the unemployment rate currently standing at a record 35%, and the presence of foreigners has stoked resentment among some locals who see them as competitors for opportunities, housing and other services.

“If you are a South African business person who opens a restaurant or a factory, there is no law that tells you what to do, you can bring 100% foreign nationals or 100% South Africans,” Home Affairs Minister Aaron Motsoaledi said in an interview with Bloomberg. “We are saying there is an issue with unemployment and the absence of those quotas.”

Based on previous comments by the minister, the sectors which are likely to be directed impacted by the labour migration policy include:

• The hospitality sector;
• Restaurants;
• Security;
• Farming and agriculture.

The Department of Employment and Labour (DEL) has noted that the South African population has ‘expectations’ regarding access to work for local citizens, given worsening unemployment and perception or views that foreign nationals, especially undocumented, are distorting labour market access.

This practice is promoted by some employers who do not comply with existing labour legislation and continue to undermine existing minimum standards, it said in a January statement.

“The Employment and Labour National Labour Migration Policy will introduce maximum quotas on the total number of documented foreign nationals with work visas that can be employed in major economic sectors such as Agriculture, Hospitality and Tourism, Construction just to name a few.”

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