South Africa Plans Fines Up to $61,700 for Hiring Undocumented Workers While Allowing Legal Foreign Labour

South African authorities are preparing fines of up to 1 million rand ($61,700) for businesses that hire undocumented workers, Al Jazeera reported on 21 June 2026. The draft measure aims to reduce demand for illegal labour, Deputy Minister of Labour Jomo Sibiya said. “Cut off the demand, and you are going to see less and less people coming to work illegally,” he told Al Jazeera.

In central Johannesburg’s Fordsburg district, shop owner Junaid Mohammed said he employs only foreign nationals as store assistants and packers. His family business, started decades ago by his father as a general dealer, now survives on cheap imports and narrow margins. 87 per hour or $324 per month plus statutory contributions.

He said he hires staff only when business allows and can tell them they are not needed when trade is slow. “It was not a deliberate choice,” Mohammed said. ” South Africa’s unemployment rate stands at about 33 percent, with youth unemployment for ages 15-24 exceeding 60 percent.

Deputy Minister Sibiya said companies hire undocumented migrants because the labour is cheap. “The reason why you see a number of companies employing illegal foreign immigrants is because, for them, it’s cheap labour. It’s about exploitation.

It’s about making profit,” he stated. He added that injured undocumented workers often receive no hospital care or incident reports. ” Sibiya distinguished between legal and illegal foreign workers. ” Vigilante groups Operation Dudula and the March and March movement have conducted citizen raids on businesses accused of hiring foreign nationals, with some incidents turning violent.

President Cyril Ramaphosa condemned the vigilante actions and pledged to hire 10,000 labour inspectors. Migration scholar Loren Landau of the University of Oxford said employers gain advantages from hiring foreigners who fear deportation or non-payment.