Labour Union, the Public Servants Association (PSA) said it was extremely dissatisfied with the Department of Employment and Labour’s (DEL) newly announced woefully inadequate penalty of R10 000 per undocumented foreign national found in the employ of non-compliant businesses
Image: Leon Lestrade / Independent Newspapers
Similar to a slap on the wrist was how labour union the Public Servants Association (PSA) described the “inadequate” and "insulting" R10,000 fines handed to employers found to have undocumented foreign nationals on their books.
Given the country’s current unemployment crisis — with more than 31% of those eligible to work unemployed, equating to over 7.8 million people at the end of the last quarter of 2025 — the PSA believes the fines do not send a strong enough message to transgressors.
The union’s criticism follows reports that more than 100 undocumented foreign nationals were arrested during inspections at construction sites in Ekurhuleni. Employers face a fine of R10,000 for each undocumented worker found in their employ.
Deputy Minister Jomo Sibiya last week also raised concern about the country’s high unemployment rate, stating that the department would intensify inspections and take tougher action against employers who violate labour laws.
In a statement released to the media on Monday, the PSA described the penalty as “woefully inadequate” and unlikely to deter employers from exploiting undocumented workers.
“The Public Servants Association (PSA) expresses its extreme dissatisfaction with the Department of Employment and Labour’s (DEL) newly announced, woefully inadequate penalty of R10,000 per undocumented foreign national found in the employ of non-compliant businesses,” the union said.
The PSA added that the penalty fails to reflect the scale of the problem, arguing that some employers benefit from cheap labour.
“This penalty, particularly in the context of South Africa’s severe unemployment crisis, is completely inadequate. The DEL itself acknowledged that the hiring and exploitation of undocumented foreign nationals is a contributing factor to local unemployment and the deterioration of labour conditions.
“A R10,000 fine per unlawfully employed worker is insultingly low and fails to send a clear message to employers who intentionally violate labour and immigration laws.”
The PSA called on the department to introduce stronger enforcement measures, including fines proportionate to company turnover.
“If the DEL truly recognises the scale of the problem, it must introduce far harsher penalties, including substantial fines proportionate to company turnover, criminal charges for repeat offenders, confiscation of profits gained from illegal labour practices, and permanent blacklisting from public procurement opportunities,” the statement read.
DAILY NEWS