South African households employing undocumented foreign domestic workers could face hefty fines under proposed amendments to employment legislation, while still being legally required to honour workers’ wage and employment claims.
The proposed Employment Services Amendment Bill, tabled in Parliament, seeks to strengthen enforcement against the unlawful employment of foreign nationals and introduce penalties for employers who breach immigration and labour laws.
The proposed changes could have significant implications for private households that employ foreign domestic workers, particularly those who believe a worker’s immigration status means they can pay below the legal minimum wage or disregard other employment obligations.
Penalties
Under the proposed framework, employers could face a R100 000 fine for a first offence, with penalties potentially increasing to R1 million or resulting in imprisonment for further violations.
The Bill remains under consideration, and its proposed provisions should not be confused with legislation already in force.
Domestic workers could still claim minimum wage
Section 12D of the proposed Bill provides that workers unlawfully employed in South Africa would retain the right to pursue employment-related claims against their employers.
These could include claims involving unpaid wages, minimum-wage violations and other breaches of applicable labour legislation or collective agreements.
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”.
Labour inspectors and bargaining council agents could also pursue claims on behalf of workers who are unable to enforce their rights themselves.
The proposed amendments aim to close loopholes that allow employers to avoid their obligations by exploiting a worker’s undocumented status.
These obligations can include paying the prescribed minimum wage and meeting applicable registration requirements for the Unemployment Insurance Fund (UIF) and Compensation Fund.
The proposed penalties for unlawful employment would apply to employers across the country, including private households.
Minimum wage stands at R30.23 an hour
The developments come as South Africa’s national minimum wage stands at R30.23 an hour, effective from 1 March 2026.
The rate increased from R28.79 an hour and applies to domestic workers, farm workers and other employees covered by the national minimum wage provisions.
For a domestic worker completing a typical 160-hour working month, the minimum-wage equivalent is approximately R4 837 before deductions.
However, actual monthly earnings depend on the hours worked, and employers must comply with the applicable rules governing working hours, overtime and other employment conditions.
Compliance remains a concern in the domestic-work sector.
Statistics South Africa data cited in reporting on domestic-worker pay put the median monthly salary at R2 350 – substantially below the minimum-wage equivalent for a 160-hour month.
The gap highlights the challenges facing workers whose wages fall below the legal minimum, as well as the potential consequences for employers who fail to comply.
What employers need to know
The proposed amendments reinforce the distinction between immigration compliance and employment rights.
Employers may be prohibited from employing foreign nationals who do not have the required authorisation to work in South Africa. However, that does not automatically remove the worker’s ability to pursue employment-related claims.
In practical terms, employers cannot assume that hiring an undocumented foreign national allows them to avoid paying wages owed or complying with applicable labour protections.
The Bill also seeks to establish a legislative framework for labour migration and introduce sector-specific quotas for the employment of foreign nationals.
Public comment deadline is 6 November
The Employment Services Amendment Bill was approved by Cabinet for introduction to Parliament before being referred to the Portfolio Committee on Employment and Labour for consideration.
The public-comment period runs until 6 November 2026, giving interested parties an opportunity to submit their views on the proposed changes.
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.