Cabinet announced on 28 May 2025 that it has approved both the National Labour Migration Policy (NLMP) 2025 White Paper and the Employment Services Amendment Bill, 2021 (ESAB). These will now proceed to implementation and submission to Parliament.
The NLMP and ESAB have been under consideration for several years. They introduce significant changes to the employment of foreigners in South Africa. These changes carry direct implications for employers across key economic sectors.
The new framework aims to balance the need for economic growth and skills development. At the same time, it prioritises employment opportunities for South African citizens, permanent residents and refugees.
Key provisions of the NLMP 2025 White Paper
The NLMP 2025 White Paper establishes a framework for the movement and employment of foreigners. This responds to (i) high domestic unemployment and (ii) public concerns about how foreign labour affects job opportunities for South Africans.
Noteworthy aspects of the NLMP are:
- The introduction of quotas on the number of foreign nationals who may be employed in major economic sectors such as agriculture, hospitality, tourism and construction;
- a restriction on the allocation of business visas for foreign nationals in certain sectors; and
- a limit on foreign nationals establishing small, medium and micro enterprises, and trading in certain sectors of the economy.
Regulating the employment of foreigners
The ESAB gives effect to the NLMP by regulating foreign labour. It also seeks to bring consistency between the Immigration Act 13 of 2002 and the Refugees Act 130 of 1998.
The ESAB introduces Chapter 3A to the Employment Services Amendment Act, 2021. Section 12B empowers the Minister of Employment and Labour (the Minister), after consulting the Employment Services Board and considering public comments, to set maximum quotas for the employment of foreign nationals. These quotas may apply by sector, occupation and/or geography.
Employers may exceed the quota only if critical skills are required or if the Minister grants an exemption.
Once the ESAB is implemented, employers who wish to employ foreign nationals must:
- determine if the foreign national is entitled to work in South Africa and to perform the specific work according to the conditions imposed on their work visa/permit;
- satisfy themselves that no other persons in South Africa (other than foreign nationals) possess the requisite skills to fill the vacancy before recruiting a foreign national;
- prepare a skills transfer plan for any position filled by a foreign national (unless exempted by the Minister);
- provide foreign nationals with terms and conditions of employment which are no less favourable than those provided to South African citizens or permanent residents; and
- retain copies of all documents proving the foreign national’s lawful entitlement to work in South Africa.
Under section 12BC, the Minister may make regulations regarding:
- measures employers must take to ensure that no suitable South African is available before recruiting a foreign national;
- requirements for using employment services to recruit South Africans;
- preparation of skills transfer plans; and
- criteria and procedures for applying for exemptions from quotas or other requirements.
Implications for employers
Employers operating in the identified sectors (such as agriculture, hospitality, tourism and construction) should begin preparing for the introduction of sectoral quotas on the employment of foreign nationals.
This includes:
- reviewing their current workforce composition and recruitment practices;
- ensuring or implementing a robust verification process to ascertain the legal status of foreign employees;
- developing and maintaining skills transfer plans in the recruitment of foreign nationals; and
- monitoring regulatory developments and participating in public consultations on quota determinations which impact their sectors.
Mechanisms to ensure compliance with the Immigration Act
The ESAB provides mechanisms to ensure compliance with the Act and the Immigration Act. These mechanisms include an agreement between the Minister and the Minister of Home Affairs. This agreement allows labour inspectors, designated under section 63 of the Basic Conditions of Employment Act 75 of 1997, to enforce the provisions of the Immigration Act.
Failure to comply may result in enforcement action. This includes fines of up to R100,000 and other penalties specified in the ESAB. Employers must also consider these proposed amendments alongside the Employment Equity Amendment Act 55 of 1998.
Although the ESAB has not yet been implemented, it will proceed to Parliament for consideration and enactment. In the meantime, employers are advised to monitor the legislative process. They should begin reviewing their employment policies and practices in anticipation of the new requirements for employing foreign nationals.
Operation New Broom
As part of the broader initiative and alongside these legislative developments, the Department of Home Affairs recently launched Operation New Broom to address the employment of foreigners. This technology-driven initiative aims to combat illegal immigration. It uses advanced biometric technology to verify individuals’ immigration status in South Africa, which reduces the risk of fraudulent documentation.
In its first phase, Operation New Broom has already led to the arrest of 25 suspects. These individuals had illegally occupied land in District 6, Cape Town.
| Imraan Mahomed | Director | Employment Law Practice | mail me | |  |
| Taryn York | Senior Associate | Employment Law Practice | mail me | |  |
| Sashin Naidoo | Associate | Employment Law Practice | mail me | |  |
| | Cliffe Dekker Hofmeyr (CDH) | | |
