DoEL: Employment Services Amendment Bill

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DoEL: Employment Services Amendment Bill

• 15 June 2026
• Law
• South African Accounting Academy

Summary:

The Department of Employment and Labour (DoEL) has introduced the Employment Services Amendment Bill (B16–2026), which legalises frameworks from the National Labour Migration Policy (NLMP) to modernise the labour market, combat rising unemployment, and tightly regulate the employment of foreign nationals.

Article:

The draft Bill was approved by the Cabinet a year ago, and has been promised by the DoEL as a way to modernise the regulation of South Africa’s labour market.

Broadly, the laws aim to regulate the employment of foreign nationals and enhance job opportunities for South African citizens.

The Bill amends the Employment Services Act 4 of 2014 to address rising unemployment and the high representation of foreign nationals in specific, lower-skilled sectors.

Notably, the bill will work hand in hand with the National Labour Migration Policy (NLMP), which provides a framework for managing foreign labour. The bill, meanwhile, provides policy legal force.

Key Regulatory Changes

• Ministerial Quotas on Foreign Labour: The Minister of Employment and Labour can set maximum percentage quotas for employing documented foreign nationals. These restrictions can be specific to economic sectors, occupational categories, or geographic regions.
• Gig Economy Regulations: It formally defines and introduces statutory obligations for Digital Labour Platforms (DLPs). Digital entities that coordinate short-term gig work (such as e-hailing or delivery apps) face strict regulatory requirements.
• Expanded Scope of "Workers": The legal scope of the parent Act expands to include all individuals classified as workers under the National Minimum Wage Act. It also covers non-profit private employment agencies.
• Enforcement Coordination: The Bill harmonises workplace regulations with the Immigration Act and the Refugees Act. It establishes joint operational agreements allowing labour inspectors to enforce immigration law directly during workplace audits.
• Harsher Non-Compliance Penalties: Maximum fines for statutory violations double from R50,000 to R100,000. The changes target employers who exploit undocumented workers to bypass minimum wage laws.

Refer to https://www.sanews.gov.za/south-africa/bill-proposes-foreign-worker-quotas-tougher-employer-penalties for the latest news published by government in this regard.

The Bill sits with the National Assembly under parliamentary review, following structural delays from its initial Cabinet approval. The next structural phase involves public participation hearings managed by Parliament's Portfolio Committee.

Click here to download the 16-page document:

https://www.labour.gov.za/DocumentCenter/Bills/Employment%20Services%20Amendment%20Bill.pdf 

Relevance to Auditors, Independent Reviewers & Accountants:

• The labour laws are pieces of legislation that your clients must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
• As an employer, you also need to comply with the relevant labour laws in your workplace.
• You should also be aware of and keep up-to-date with proposed amendments to relevant labour laws.

Relevance to Your clients:

• An entity (company or close corporation) has a duty to comply with all laws, otherwise they could be held liable.
• An employer has a duty to comply with all the relevant labour laws.
• Employers should also be aware of court and keep up-to-date with proposed amendments to relevant labour laws.

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