Domestic workers minimum wage rules South Africa Employment Services Amendment Bill UIF fines

South Africa's Employment Services Amendment Bill introduces steep fines for employers who hire undocumented foreign workers
Employers who underpay or skip UIF and Compensation Fund registration could face penalties of up to R1 million or jail time
Domestic workers employed illegally will still be entitled to claim the national minimum wage under the proposed law

Employers of domestic workers warned as new bill proposes R1 million fines — Employers hiring undocumented workers can be fined. Image: Menka belgal
Source: Getty Images

South Africans who employ domestic workers need to take note of sweeping changes coming to the country's labour laws. A new bill has been tabled in Parliament that could affect private households across the country, not just large businesses.

The Employment Services Amendment Bill proposes significant penalties for anyone found to be employing undocumented foreign nationals. A first offence carries a fine of R100,000. Repeat violations could result in fines of up to R1 million, or 10% of a business's annual turnover, and even a prison sentence.

What the bill means for private households

Many private households have historically employed undocumented foreign workers under the assumption that doing so placed them outside the reach of South Africa's labour legislation. The new bill directly addresses this loophole.

Under Section 12D of the bill, an illegally employed worker retains the right to claim any benefit owed under South African labour law. This includes entitlement to the national minimum wage, UIF contributions, and Compensation Fund registration. Labour inspectors are empowered to pursue these claims on behalf of workers who are unable to do so themselves.

The Department of Employment and Labour said the provision:

"seeks to prevent unscrupulous employers from employing foreign nationals on terms and conditions of employment that are inferior to those provided for by labour legislation and collective agreements."

This means employers could face a double liability: fines for hiring an undocumented worker in the first place, and additional claims for failing to meet legal employment standards during that person's time of employment.

When the bill becomes law

The bill received Cabinet approval and was gazetted in late May 2026. It was handed to the Portfolio Committee on Employment and Labour in August, and public comment opened in September.

Stakeholders have until 6 November 2026 to submit their views. Written submissions should be addressed to the Portfolio Committee on Employment and Labour, for the attention of Mr Zolani Sakasa, at employmentservicesbill@parliament.gov.za.

The bill also proposes sector-specific quotas for the employment of foreign nationals, aiming to protect jobs for South African citizens while establishing a clearer legislative framework for labour migration.

Read the full article here.

Domestic workers minimum wage rules South Africa Employment Services Amendment Bill UIF fines

What the bill means for private households

When the bill becomes law

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