Hiring foreigners in South Africa: Legal must-haves for employers

As South Africa’s economy becomes increasingly integrated with global markets, businesses are seeking foreign talent to fill critical roles. Hiring a foreigner in South Africa is not as straightforward as recruiting a local candidate, however. South African labour law imposes strict requirements that employers and foreign employees must meet to ensure compliance. Employers who fail to adhere to these regulations risk facing penalties, reputational damage or legal action . While the South African business landscape thrives on diversity, under the Immigration Act employers are prohibited from hiring a foreigner unless they possess a valid work visa. Additionally, the Employment Services Act mandates that employers must first ensure that no suitable South African citizen or permanent resident is available to fill the position before considering a foreign worker. These laws aim to balance South Africa’s need for skilled labour with the protection of local workers. When hiring a foreigner, employers should be diligent in gathering these crucial documents: Work Visa: A valid work visa is non-negotiable. The visa must correspond to the type of work the foreigner will be performing (for example general work visa, critical skills visa, intra-company transfer visa). Proof of Qualifications: Employers should verify that the foreign worker possesses the qualifications and skills claimed. In some cases, qualifications obtained abroad may need to be verified through the South African Qualifications Authority (SAQA). Passport: A valid passport with at least 30 days` validity after the intended departure date from South Africa. Proof of Residence: Foreign employees must provide evidence of legal residence in South Africa. This could be a residential lease or proof of accommodation. Employment Contract: A written employment contract outlining the terms and conditions of employment is essential. This contract must align with South Africa’s labour laws and regulations. Skills Transfer Plan: For certain positions, employers must prepare a skills transfer plan to ensure that skills are being transferred to South African employees. Tax Documentation: Employers must ensure the foreigner is registered with Sars and has the appropriate tax clearances in place. Employers who hire foreign nationals without valid work visas may face hefty fines or even imprisonment. Non-compliance with these regulations can result in severe penalties, including fines of up to R100,000. The department of home affairs conducts regular audits to ensure compliance, and businesses found in violation of immigration or labour laws could also be banned from employing foreigners in future. It is therefore crucial for employers to adhere strictly to these legal requirements to avoid legal repercussions and ensure a smooth hiring process. By understanding and complying with these legal requirements, South African businesses can successfully integrate foreign talent into their workforce, driving innovation and growth while staying within the bounds of the law. • Advocate Tertius Wessels is legal director at Strata-g Labour Solutions.


Home Affairs to bring 11 000 highly skilled employees to SA

Minister of Home Affairs Leon Schreiber stated that 11 000 highly educated individuals could boost the economy by 1.8%.
Home Affairs aims to attract highly skilled workers to South Africa.
Minister of Home Affairs Leon Schreiber believes importing more tertiary educated workers will boost South Africa’s economy.
Schreiber gave a speech at the Rand Merchant Bank Morgan Stanley Investor Conference on Monday, where he spoke about his department’s role in economic growth.
As well as administrative functions, he envisioned a Department of Home Affairs (DHA) that was a driver of investment, tourism and opportunity.
Skills needed for economic boost
Schreiber said National Treasury had earmarked the attraction of highly skilled individuals to South African shores as the second highest need on the list of economic growth factors.  
The number one stumbling block to economic growth – load shedding – is a fading memory, priming the DHA for a pivotal role.
“Bringing just 11 000 more highly skilled and experienced individuals to South Africa would triple the annual growth rate from the 0.6% the country experienced last year,” Schrieber told the conference, citing International Food Poverty Research Institute analysis.
Opening the door to such high-value individuals would be achieved through a new remote work visa that only forces a working visitor to register with Sars if they spend more than half the year in the country.
The economic upside, as per Schreiber, is that these working tourists spend their earnings in South African shops, restaurants and entertainment venues.
Only 16% of South Africans with tertiary qualifications
South African consumers are under pressure, with many having little disposable income. Even high-income earners can have up to 45% of their income taken by the South African Revenue Service (Sars).
Anyone earning more than R1 million is subject to a R250 000 flat tax fee plus 41% of their taxable income.
Additonally, a study released by the Department of Higher Education and Training in March showed 16.6% of the population had a tertiary qualification – that number dropping to 7.3% for bachelor’s degrees.
Figures for nations in Asia, Europe, and the Americas were significantly higher, with Singapore, Denmark, Australia, and the United States all recording bachelor’s degrees for more than 30% of their populations.
Across G20 nations, a combined 41.5% of the populations between the ages of 25 and 35 had obtained tertiary qualifications, as opposed to 13.1% of South Africans in that age bracket.
How to quality for a Digital Nomad visa
As of June, international remote workers only needed to meet three simple criteria to qualify for Digital Nomad visa according to Nomads Den.
Applicants need:
•    a valid passport
•    contracts or verified proof of remote work
•    an annual income of R1 million
The visas are valid for 12 months and come with a 36 month renewal option.


How the home affairs dept wants to overhaul the country`s immigration system

• The White Paper on Citizenship, Immigration and Refugee Protection proposes a raft of legislative reforms. • One is that the period a foreign national resides in the country won`t be the main considering factor for granting permanent residency. • The Department of Home Affairs is looking to introduce a points-based system for foreign nationals to apply for residency. As part of major policy reforms to overhaul the country`s immigration system, the number of years a foreign national resides in the country will no longer be a main determining factor for granting permanent residency. Periodic invitations for qualifying foreigners to apply for permanent residence will be introduced, together with a points-based system. These are among several reforms as part of the White Paper on Citizenship, Immigration and Refugee Protection, as approved by Cabinet in April, as a policy to guide the drafting of new legislation and implementation of a new immigration and citizenship system. On Tuesday, Home Affairs Minister Leon Schreiber, his deputy, Njabulo Nzuza, and department officials presented the reforms to address challenges in immigration to the Portfolio Committee on Home Affairs. Mavuso said the policy framework affirmed the use of the critical skills list to attract international migrants with skills and qualifications that were in demand. `The number of years that a foreigner has resided in the country will no longer be a main determining factor for granting permanent residency. Periodic invitations for qualifying foreigners to apply for permanent residence will be introduced, together with the points-based system. `Introduction of limited-duration permanent residence permits linked to minimum investment. The policy framework must provide for the establishment of the Immigration Advisory Board that will advise the minister on policy and legislative matters. The policy framework and legislative intervention are required to establish the Immigration Division, whose members are duly qualified to deal with the granting of various visas,` Mavuso said. He said policy framework and legislative intervention were required to establish Immigration Courts. On the other hand, the Border Management Authority Act was expected to be reviewed to align it with Immigration and Citizenship`s new policy framework. In July, Schreiber decided to extend the temporary concession for foreign nationals currently awaiting the outcome of visa, waiver and appeal applications. According to Schreiber, the extension safeguards applicants - including those who are contributing to South Africa`s economy through their scarce skills - from suffering adverse consequences or being erroneously declared undesirable while they await the outcome of applications submitted to the department. The committee was not happy with that decision - and several MPs raised concerns about capacity to ensure that undocumented individuals were deported. Regarding the protection of refugees, the new legislation must enable the department to refuse admission of persons for whom there were reasonable grounds for regarding them as a danger to the security of the country. This also includes the introduction of the `First Safe Country` principle as a precondition for admitting asylum seekers who have transited through safe countries. Mavuso said refugees and asylum seekers travel through safe countries, but still chose to come to South Africa. `Are we dealing with genuine asylum seekers? Or just economic migrants. Asylum seekers must show good cause for their unlawful entry or presence in the country. Refugee reception offices must be located at ports of entry in line with international practice,` he said. Furthermore, Mavuso said the department was currently developing a supplementary policy paper, which would be submitted to the minister for approval by 31 March 2025. The supplementary paper will take into consideration the legal opinion which has since been commissioned by the department. The MK Party`s Sihle Ngubane said the department`s presentation appeared good, but the situation in reality was worse. `Here we go again, we are good on paper, but we are bad at implementation. The situation on the ground is not the way it is being presented here. We are used to that now in South Africa. We have porous borders, people are walking over the border like going from the bathroom to the dining room,` he said. The Patriotic Alliance`s Stacey-Lee Gaby Khojane spoke on the issue of scarce skills. `Before you bring in foreign skills, you need to go and consult with the Department of Higher Education. We have students with skills that are not finding employment. How will someone from the outside be a better choice than someone on the inside,` she said. The DA`s Adrian Roos said the legislation would bring synergy between various legislation regarding immigration and citizenship.


Home Affairs urged to exhaust local skills before granting foreigners visas

 Joel Sihle Ngubane of the uMkhonto weSizwe (MK) party and a member of the portfolio committee on Home Affairs have called on the department to prioritise local skills before issuing critical skills visas to foreigners. The committee met on Tuesday and was briefed by Home Affairs Minister Leon Schreiber on the implementation of the Vulindlela recommendations related to the department. The recommendations aim to review the regulatory framework and processes that govern the issuing of critical skills, general work, business and intracompany transfer visas at the department. This includes the point-based system that is used to determine visa eligibility. The point-based system considers at least six criteria, including age, qualifications, language skills, work experience, offer of employment and the income being offered to the applicant. Visa system implementation While Ngubane praised the department’s presentation on the recommendations, he expressed concerns about implementation. “Here we are as Home Affairs trying to look good on paper, but bad in practice. This is a good presentation. This is where the country needs to be, but we’re not there at all when it comes to practice,” said Ngubane. “We’re used to these things in South Africa where we come here with excellent presentations and paperwork and policies, but when we go to implementation, it’s zero.” Point-based system for visas Ngubane further urged the department to exhaust all local options before seeking skills abroad. The department has approved 4,913 critical skills visas since 2020. “Before we embark on the points-based system, does it kick in after we have locked at local skills first? Before we move in, we need to look at the local skills, so that when we go out there, we know we failed to find local skills,” he said. ALSO READ: Home Affairs investigates sale of South African passports and visas in Dubai “I was shocked when they said they refreshed the skills list in 2014, but the higher education publishes their list every year. All these years, where were they sleeping and not looking at lists? “Let’s involve the Higher Education department too in this, not only the Labour department. The Higher Education is sitting with an influx of skills that are not hired by Home Affairs. There are a lot of kids that are unemployed and have qualifications, but we speak of looking elsewhere for skills.” ‘Is construction critical skill?’ “If you go to Midrand where the Chinese are constructing houses, there are Chinese who are just doing construction work and you ask yourself: is that a critical skill? There is a problem there.” The member of Parliament also called for a review of some labour laws that allow people to get away with too much in the workplace. He emphasised that he wasn’t advocating for the mistreatment of workers, but rather for tightening laws to ensure South Africans are seen as reliable employees. “Sometimes as Home Affairs we look at the wrong things and fail to fix the right things. We need to look at our labour laws too. They [foreigners] bring their own labourers because our labour laws are weak, and theirs are tight,” he said. “Zimbabweans are occupying all our restaurants and business owners have seen the loopholes, that these guys can’t strike, they have not joined any labour unions. These things must be fixed. I’m not saying we must change our labour laws to treat our people inhumanely. I’m saying, how do we prevent people looking at Zimbabwean foreigners to employ than South Africans.” ‘People come in like they’re going to the bathroom’ Ngubane also highlighted the need to secure the country’s borders. “We need to look at capacitating the BMA (Border Management Authority). We talk nicely at the visa regime but we have porous borders,” he said. “People come in like they’re going to the bathroom and go back as if they’re going to the bedroom. Borders are porous, we need to go back and look at the basics before we look at what is being presented here.”


'It's false' — Ocean Basket slams labour department claims that staff are underpaid at Menlyn franchise

Ocean Basket has slammed the employment and labour department for claims that its staff were owed more than R800,000 in unpaid wages, stating there was no evidence to back it up and instead, they were falsely lumped with the alleged unfair labour practices at the Babel restaurant in Menlyn, Pretoria.

The seafood restaurant was included in reports of unfair labour practices after the department conducted a raid at Babel on Monday after a tip-off and social media post by a former employee.

After inspecting the high-end restaurant, where two foreigners and the owner were arrested, the department went to the nearby Ocean Basket, where an undocumented Mr Delivery driver was arrested while collecting food.

The department said not only did Babel violate employment laws but so did the Ocean Basket franchise, which was said to not pay staff a minimum wage as they earned commission and tips instead.

“At Ocean Basket ... the amount the employer owes the employees is R813,969. The employers did not comply with the provision of the Compensation of Occupational Injuries and Diseases Act as ... Ocean Basket failed to submit the return of earnings for 2023 and owes the Compensation Fund R72,000,” ministry spokesperson Thobeka Magcai said.



However, this was false and there was no evidence to substantiate the claims as all staff earned the regulated minimum wage including tips and commission, CEO Grace Harding told TimesLIVE.

Since the news broke of the alleged unfair labour practices at Ocean Basket, its head office spent 24 hours investigating the Menlyn franchise through an independent labour lawyer, internal auditors and an accounting firm.

After hours of scrutiny, it was found no illegal foreigner was employed. This was confirmed by the home affairs department which visited the eatery on Sunday night, said Harding.

“All staff receive their monthly wages, tips and commission as per their employment contracts. No money is owed to any staff members. Staff have voluntarily supplied affidavits to this effect. Our practices comply with the South African labour legislation. No contact has been made or documentation supplied to us by the department as evidence of where they got the figures they released to the media or to ask for our co-operation in resolving this.

“We have been referred among personnel at the department but no-one has answered any questions or agreed to meet or supply the evidence supporting these figures,” Harding said.

They called on the department to join them in working together to understand what had occurred at the Menlyn franchise, review where they got their data from and understand their procedures.

“We are concerned that they issued a media release without discussing any findings with us. These actions have had a detrimental effect on our brand's credibility and reputation.

Instead, Harding said they do not believe such a tip-off of unfair labour practices and underpayment of staff came from their workers, but likely from Babel staff.

“Anyone who works at an Ocean Basket restaurant and who has a complaint can make an anonymous report to head office which then carries out an inspection and investigation into the claims,” Harding said.

While the national minimum wage is set at R27.58 per hour, since Ocean Basket trades in different provinces governed by different bargaining councils or basic conditions of employment, the company abides by the regulations in each province.



Commission is earned as a percentage of sales for each month, said Harding.

“In the event that commission earned falls below the minimum wage, in relation to the number of hours a person has worked, a top-up amount is provided to get them to the minimum wage per hour. Tips are over and above the commission earned. It is a separate payment made on top of the commission.

“We are in contact with the inspector at the department who conducts routine audits of restaurants to ensure they are adhering to the Basic Conditions of Employment Act who has assured us he is receiving the full co-operation of the business owner and this is a routine audit which is not yet complete,” Harding said.

Magcai had said the department discovered the Occupational Health and Safety Act was violated and Ocean Basket failed to ensure compliance with gas installation and the certificate of conformity. Therefore, the use of gas in the kitchens was prohibited, she said.

Harding said the inspector made valid points regarding health and safety.

“This [relates] to two main themes — the frequency of important checks such as gas safety valves and making sure there is someone on duty who is a trained health and safety officer. His comments are valuable and we have already gathered the gas paperwork and are working through the other findings.

“I want to say thank you for the collaborative tone and approach that we have experienced and the focus was on making sure people are safe.”