The South African government has implemented one of its most significant changes in its labour and migration policy framework in recent years. The persistently alarming unemployment levels and growing public concerns over the use of skilled and unskilled foreign labour contributed to the government responding with a robust legislative and policy overhaul. On the 28th of May 2025, the Cabinet approved the National Labour Migration Policy (‘NLMP’) and the Employment Services Amendment Bill (‘ESAB’). Together, these frameworks aim to address rising economic inequality, regulate the employment of foreign nationals, and encourage the retention of critical skills within the country.
The NLPM marks South Africa’s first comprehensive policy specifically addressing labour migration. It offers a framework to balance the rights of South African and foreign workers, focusing on fair employment practices while acknowledging the importance of attracting critical skills. Central to the policy are sectoral employment quotas that limit the number of foreign nationals who may work in specific industries such as agriculture, hospitality, tourism, and construction. The policy also restricts business ownership and trading activities by foreign nationals in certain sectors, particularly in the informal sector, this being in line with the National Small Enterprise Act amendments.
There are exemptions for individuals listed under South Africa’s critical skills list, indicative of a balanced approach that allows flexibility in sectors that rely on specialised expertise. Additionally, the policy further aims to strengthen oversight mechanisms to prevent the exploitation of migrants while improving interdepartmental coordination. The Minister in the Presidency, Khumbudzo Ntshavheni, remarked during the cabinet’s announcement that “the policy is designed to address mounting public concern about job scarcity”. The Cabinet’s missions can be regarded as an effort to balance between protecting local employment opportunities and ensuring that South Africa remains an attractive destination for expert skilled labour.
The introduction of ESAB’s legal framework brings authoritative regulations to support the NLMP. The Bill is before Parliament for public consultation and final approval, but once promulgated, it will empower the Minister of Employment and Labour to set foreign hiring quotas per sector, region, or occupation. Notably, employers will be required to prove that no suitably qualified South African is available before hiring a foreign national. The Bill also aims to introduce mandatory skills transfer plans, requiring businesses employing foreign nationals to present structured plans demonstrating how knowledge and skills from foreign employees will be transferred to empower local workers. Labour brokers and temporary employment service providers will face increased scrutiny, and employers could be fined up to one hundred thousand (R100 000.00) for non-compliance. The main objective is to prioritise South African workers in hiring practices, while still allowing room for skilled foreign labour where necessary.
As these changes take effect, businesses must act proactively. First, they should conduct an internal audit to identify all foreign employees, verify their permits, and ensure all documents are up to date, with systems in place to monitor expiry dates. Employers must also confirm that foreign workers meet essential skills criteria and keep clear records for each appointment. Where necessary, skills transfer plans should be developed to outline how expertise will be shared with local staff. Recruitment policies must include labour market testing, and all hiring processes should be thoroughly documented to demonstrate compliance. Finally, companies must ensure that foreign workers receive the same conditions as local employees and prepare for tighter inspections from the Department of Employment and Labour as enforcement becomes more rigorous.
South Africa’s new labour migration framework marks a significant shift in the country’s approach to employment and immigration. The NLMP and ESAB collectively push for a more controlled and equitable labour market that prioritises South African workers to combat high unemployment rates, while recognising the need and value of foreign workers possessing critical skills to bolster market growth. Employers who take stock of these imminent changes by proactively aligning their operations to comply stand to not only avoid penalties but also contribute to a more inclusive and resilient workforce. The significant takeaway is that the NLMP and ESAB will barricade our workforce vulnerabilities against the continued exploitation of the undocumented foreign workers through practices of “cheap labour”, which has been one of the main catalysts for our rapid unemployment rate.
Article by Joléze Roux
Dispute Resolution Official at Consolidated Employers Organisation (CEO SA)