R100,000 fine per undocumented worker for employers, says govt

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Ronald Ralinala

June 9, 2026

Employers who hire illegal migrants could son face fines of up to R100,000 per undocumented worker, according to the Deputy Minister of Employment and Labour, Jomo Sibiya, who confirmed that the department is preparing a sweeping crackdown on businesses that profit from exploiting undocumented workers. The proposal forms part of a broader government push to tighten enforcement of South Africa’s labour and immigration laws.

Sibiya, speaking in a televised interview, said the department also plans to recruit 10,000 labour inspectors to bolster enforcement capacity. He described the scale of the recruitment as unprecedented, noting it is the first such drive of its kind since 1994.

The announcements follow President Cyril Ramaphosa’s address to the nation on Sunday, in which he committed to harsher penalties, including imprisonment, for employers who breach the Immigration Act by hiring foreign nationals without papers.

Ramaphosa’s intervention came against a backdrop of rising tension over illegal immigration. Recent protests targeting foreign nationals, alongside calls for a nationwide shutdown on 30 June demanding that undocumented migrants leave the country, have placed immense political pressure on the state to act.

In his address, the president set out five priority measures aimed at reshaping how the country manages migration and enforces its laws.

MeasureWhat it involves
EnforcementIntensifying arrests, inspections, prosecutions and deportations, plus tougher penalties for employers
Border controlBetter technology, infrastructure and personnel, and relocating refugee reception centres closer to border posts
Anti-corruptionBiometric digital ID, phasing out green ID books and tighter identity verification
Legal reformOverhauling immigration and labour laws, introducing quotas for foreign workers, regulating informal traders
Regional cooperationWorking with African states to tackle root causes such as poverty, conflict and weak economies

The thread running through all five measures is clear: government wants to close gaps that have widened over decades, while shifting some of the responsibility onto the employers who create demand for cheap, undocumented labour.

Sibiya pushed back firmly against the idea that the new measures signal a government that has failed on immigration. “I don’t think it would be correct to say we have failed. Yes, there have been challenges,” he said, framing the moment instead as an honest acknowledgement of gaps that need closing.

He argued that many of the country’s labour laws were drafted for a different era. “Some of the challenges we face today did not exist when many of our labour laws were originally developed,” he said, pointing to the National Labour Migration Policy and the Employment Services Amendment Bill as the reforms that will change the game.

Why R100,000 fines for hiring undocumented workers could shift employer behaviour

The deputy minister was blunt about why current penalties have failed to deter non-compliance. “Some employers budget for non-compliance because current fines are not high enough,” he said. The proposed amendments would introduce both steeper fines and criminal charges.

The maths behind the R100,000-per-worker figure is what gives the plan its bite. “If an employer has 500 undocumented workers, the penalty could be substantial,” Sibiya noted. At that scale, a single non-compliant business could face tens of millions of rand in fines.

For Sibiya, targeting employers is the most effective way to choke off demand. He accused many businesses of exploiting undocumented workers by paying low wages, denying leave and forcing long hours, all in pursuit of higher profits.

The inspector shortage is at the heart of the enforcement problem. South Africa currently has just 2,300 labour inspectors nationwide, a number Sibiya says is nowhere near enough to police the country’s workplaces effectively.

IndicatorCurrentPlaned
Labour inspectors2,30010,000
Fine per undocumented workerBelow deterrent levelUp to R100,000
Scale of recruitmentNone since 1994Largest drive in 30 years

The figures show how far the department wants to stretch its reach. Quadrupling inspector numbers and raising fines dramatically are meant to make enforcement felt in workplaces that have long operated with little fear of being caught.

Sibiya was careful to define the limits of his department’s mandate. Identifying undocumented workers is the labour department’s job, he said, but deportations remain with the Department of Home Affairs and the South African Police Service. “Our responsibility starts and ends in the workplace.”

He also distinguished today’s situation from the documented labour migration of the past. “Before 1994, workers from countries such as Mozambique and Malawi were recruited through formal agrements and were documented,” he said. “What we are seeing now is different.”

On timing, the deputy minister was realistic. “This is not a one-day event,” he said, explaining that inspectors are skilled professionals who require proper training. Recruitment, he confirmed, is already in motion.

He added that enforcement operations are running daily, having recently overseen inspections in the Western Cape and KwaZulu-Natal, with another major operation planned in a province on Wednesday. His message to non-compliant businesses was pointed: even employers who assume they will never be found should expect a knock at the door.

Whether the R100,000 fine and the expanded inspectorate will translate into real change depends heavily on execution and on coordination between Labour, Home Affairs and SAPS. For now, government has set out an ambitious marker, and the businesses that have built their margins on exploiting undocumented workers are firmly in its sights.