Cabinet Approves Employment Services Bill to Regulate Foreign Labour Use

In a landmark decision that aims to transform South Africa’s labour market governance, the Cabinet has approved the Employment Services Amendment Bill for submission to Parliament. The approval, granted at a Cabinet meeting held in Cape Town, marks a significant step toward regulating the employment of foreign nationals in a way that prioritizes national security, labour protection, and economic inclusion.

The Bill, tabled as part of the government’s broader labour reform agenda, was presented to the media by Minister in the Presidency Khumbudzo Ntshavheni, who highlighted its dual objectives: safeguarding local job opportunities and preventing the exploitation of vulnerable foreign workers.

A Legal Framework to Manage Foreign Labour and National Interests

According to Minister Ntshavheni, the Employment Services Amendment Bill creates a comprehensive legal and policy framework to regulate the employment of foreign nationals, aligning national employment practices with both the Immigration Act (Act 13 of 2002) and the Refugees Act (Act 130 of 1998).

The Bill addresses several urgent concerns, including the unregulated use of undocumented foreign labour, which has been linked to worker exploitation and wage suppression in several sectors. Labour brokers, in particular, have been singled out for using cheap, undocumented workers, thereby undermining labour standards and displacing South African workers.

“The purpose of the Bill is to propose the regulation of labour brokers to prevent worker exploitation, such as the provision of cheap labour through undocumented foreign nationals,” Minister Ntshavheni explained.

Empowering the Labour Minister to Set Quotas

A key feature of the proposed legislation is the provision for the Minister of Employment and Labour to establish quotas on the employment of foreign nationals. These quotas are not arbitrary; they are to be determined based on:

• Sectoral needs (e.g., agriculture, hospitality, mining)

• Occupational categories (e.g., artisans, skilled professionals)

• Geographic zones (e.g., high-unemployment regions or industrial hubs)

The Minister will consult the Employment Services Board, assess labour market data, and invite public comment before setting any quotas.

This quota system is designed to be flexible and responsive, enabling the government to tailor foreign labour participation in accordance with local employment goals, economic realities, and demographic trends.

Protecting Local Jobs Through Skills Mapping and Development

To ensure that foreign labour is used only in areas where local capacity is lacking, Cabinet has directed the Minister of Employment and Labour to urgently finalise a national mapping of scarce and critical skills. This skills audit will help:

• Identify gaps in the domestic workforce

• Guide education and training initiatives

• Develop a pipeline of employable South African citizens in key economic sectors

“Cabinet directed the Minister to speedily finalise the mapping of what constitutes scarce and critical skills in order to develop a domestic skills base to improve absorption of more unemployed South Africans,” said Minister Ntshavheni.

This move ties into South Africa’s wider efforts to tackle structural unemployment, particularly among youth and marginalized communities.

Towards Coherent and Transparent Labour Migration Policy

Cabinet’s approval of the Employment Services Amendment Bill also underscores the urgent need for a harmonized labour migration framework. To this end, Cabinet has reaffirmed its commitment to fast-tracking the finalisation of the White Paper on Immigration, which will serve as the cornerstone policy document for administering and managing labour migration effectively.

The revised White Paper is expected to provide:

• A clear national vision on immigration and economic development

• Guidelines for integrating skilled migrants into priority sectors

• Mechanisms for border management and enforcement

• Safeguards against xenophobia and discrimination

A Balancing Act Between Inclusivity and Control

While the Bill aims to protect the local labour market, the government has stressed that the approach is not exclusionary. Instead, it is designed to balance the interests of South African citizens with the need to maintain a globally competitive workforce.

The law acknowledges the reality that foreign workers contribute significantly in areas such as health, construction, and agriculture, particularly where local labour shortages persist. As such, the new framework provides room for controlled, legal, and purposeful employment of foreign nationals while creating stronger monitoring, enforcement, and compliance mechanisms.

Next Steps: Parliamentary Review and Public Participation

With Cabinet’s green light secured, the Bill will now be submitted to Parliament, where it will undergo further scrutiny, debate, and potential amendments. The public will have the opportunity to submit feedback, ensuring that the final version of the law reflects a broad consensus across labour, business, and civil society.

The Employment Services Amendment Bill, together with the anticipated White Paper on Immigration, is poised to form the backbone of South Africa’s labour and migration reform strategy for the next decade.