Employers face tougher penalties for non-compliance when hiring labour

6 min read

During the annual Agbiz Information Session held in Pretoria on 8 October, Thapelo Machaba, Agbiz agricultural economist and policy analyst, discussed the implications that the Employment Services Amendment Bill could have on employers in the agriculture sector.

Employers face tougher penalties for non-compliance when hiring labour
Speaking during the information session, Agbiz CEO Theo Boshoff said global policy and trade uncertainty remained two of the major threats to the local agriculture sector, while the sector’s competitiveness was one of its strengths. Image: Magda du Toit
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Machaba also pointed out that government is planning to recruit 10 000 additional labour inspectors at a cost of approximately R10 billion to police labour laws and regulations.

These plans are incorporated in the Employment Services Amendment Bill (B16-2026), which is currently before Parliament. The bill is open for public comment until 6 November 2026.

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B16-2026 seeks to amend the Employment Services Act (No. 4 of 2014) to introduce a comprehensive framework for regulating the employment of foreign nationals in South Africa. The aim is to modernise and strengthen South Africa’s labour and migration regulatory framework and clarify certain definitions, expand coverage, and align employment rules with the Immigration Act (No. 13 of 2002) and the Refugees Act (No. 130 of 1998).

“It is an effort to modernise and strengthen the country’s employment services framework in response to a changing labour market and evolving migration dynamics,” Machaba explained.

The bill also seeks to introduce substantially higher penalties for contravening South Africa’s immigration laws. The introduction of a tiered civil penalty regime of up to R100 000 for a first contravention, up to R200 000 for a repeat contravention within three years, and the greater of R1 million or 10% of annual turnover for employers with two or more prior contraventions.

The bill represents a significant shift towards stricter regulation of labour migration and enhanced compliance obligations for employers across South Africa. In addition, Machaba said the bill introduces rules and regulations on hiring foreign nationals.

She explained that for employers, the proposed changes are likely to bring a stronger emphasis on compliance and due diligence, particularly in relation to the recruitment and employment of foreign nationals.

“This may involve more detailed verification processes and closer attention to documentation throughout the employment life cycle.”

Machaba emphasised the following key proposed changes:

Regulation of foreign nationals

  • Employers must verify that foreign nationals hold valid visas authorising them to work in South Africa and perform the specific role or responsibility.
  • Employers must demonstrate that no suitable South African candidate is available before hiring a foreign national.
  • A skills‑transfer plan is required for every position filled by a foreign national, unless an exemption applies.
  • Employers must ensure that foreign nationals are employed on terms no less favourable than for South African citizens.
  • Copies of visa or permits must be retained.

Foreign worker quotas

  • The minister of employment and labour may set quotas for foreign workers by sector, occupation, or region.
  • Small-scale employers may be exempt from quota requirements.

The bill extends coverage to:

  • Foreign nationals
  • Private employment agencies not operating for gain
  • Supported Employment Enterprises
  • Additional worker categories

Machaba also referred to the White Paper on Citizenship, Immigration and Refugees which focuses on work visas and their implications for labour in the sector.

“The current skills visa and the general work visa are likely to be consolidated into the skilled worker visa. To qualify, applicants would need to meet a set number of criteria that will work according to a points-based system focusing on skills, experience, occupational relevance, and economic contribution,” she explained.

She added that although this visa would be renewable, the holder must be able to show that they have been continuously employed in South Africa.

“Applicants who have successfully renewed their visas may apply for permanent residence without their employers’ involvement.”

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Machaba pointed out that for seasonal and short-term jobs, the current corporate visa will be replaced by a sectoral visa that is meant to provide a legal recruitment framework tailored to each sector.

Policy environment

Advocating for a policy environment where agriculture can grow, Sakhile Vanqa, legal intelligence specialist at Agbiz, pointed out that water, petroleum, food labelling, and crop protection products were the four critical areas in the legal environment that Agbiz is focusing on.

Regarding water, Vanqa pointed out that agriculture accounts for 60% of water use in the country, and that although irrigation supports 25% to 30% of national agricultural production, it is responsible for 90% of high-value crops such as fruit, potatoes and other vegetables.

“These are the aspects we focus on when supplying input in policy matters. [Agbiz] aims to provide data and stress the importance of irrigation’s role in food security and rural jobs.”

Shifting attention to petroleum, Vanqa noted that agriculture depends on diesel for tractors, irrigation, generators, and transport.

“If farmers don’t have access to diesel, it becomes a crisis of national proportions. In our policy discussion inputs, however, we, focus on the entire agricultural value chain, as well as proposed cost-recovery mechanisms and protection for fuel retailers,” he said.

On food labelling, which Vanqa described as a complex issue in the legal and value chain environment, he said Agbiz was engaging with business, labour, communities, and government. The organisation was advocating for alignment with international standards to avoid trade barriers and unnecessary costs.

Vanqa also stressed that South Africa was at a critical juncture regarding crop protection products.

“[The Fertilizers, Farm Feeds, Agricultural Remedies and Stock Remedies] Act 36 [of 1947] is currently under review, and new legislation is being drafted,” he said.

Earlier in the year, the South African Human Rights Commission (SAHRC) issued subpoenas to several agricultural organisations, including Agbiz, Grain SA, and CropLife, as part of its investigation into the right to food.

“During [an SAHRC] hearing, it was clear that agriculture is operating in a hostile environment with little understanding for the sector and what food production entails,” Vanqa said.

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He added that Agbiz’s submissions to the hearing, as well as its contributions to discussions on policy issues affecting the broader agricultural value chain, were based on its members’ practical experience rather than theory alone.

Agricultural trade

Charmaine Ka Makhaya, Agbiz researcher focusing on trade, gave an overview on agricultural trade during the second quarter (Q2) of 2026.

She discussed factors affecting agricultural trade and highlighted Africa’s continued importance as a trading partner for the South Africa’s agriculture sector.

Ka Makhaya said South Africa’s top export products included maize, fresh apples, wine, and animal feed. Its biggest export partners being Zimbabwe, Namibia, and Mozambique, while exports to China increased by 47 percentage points during Q2 2026.

She added that South Africa maintained an agricultural trade surplus in Q2 of 2026, with exports reaching roughly US$4,1 billion (around R67,5 billion), up 10% year-on-year.

Ka Makhaya explained that South Africa’s agriculture export strategy included both retention of established markets and the development of new opportunities.

Looking at the trade outlook, she pointed out the following:

Southern African Customs Union–India (SACU–India) preferential trade agreement: “The terms of reference was signed in August 2026, and negotiations remain important for tariff reduction and product-specific access.”

African Growth and Opportunity Act: “Preferential access [to the US market] has been extended to 31 December 2028, but tariffs and eligibility conditions still need active monitoring.”

China: “The zero-tariff preference scheme runs until 30 April 2028 under the interim arrangement while SACU–China negotiations continue.”

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Magda du Toit
Magda du Toit is a freelance communication consultant and journalist. She has worked in the agriculture sector for more than 35 years. She obtained a BA in Communication (Hons), and also completed a Post-Graduate Diploma in Marketing Management. Throughout her career she has received recognition and various awards for individual and team contributions. She was also the chairperson of the northern branch of Agricultural Writers SA and still serves on both its executive bodies. Magda is also the South African representative at the International Federation of Agricultural Journalists, where she chairs one of the committees.