What the Bill actually says — and that it isn't law yet
The figure comes from the Employment Services Amendment Bill [B16-2026]. Its explanatory summary was published in Government Gazette No. 54743 on 26 May 2026, and the Minister of Employment and Labour introduced it in the National Assembly on 29 May 2026. As of mid-2026 it is still at the introduction stage: it has to go through committee scrutiny, public comment, the National Council of Provinces and presidential assent before it can take effect — and even then it only comes into operation on a date the President fixes by proclamation. In short, it is a proposal moving through Parliament, not a fine anyone can be charged today. Treat the headlines as an early warning, not a bill that has landed.
What already applies today (this part is in force)
Long before this Bill, the Immigration Act 13 of 2002 already made it unlawful to employ a foreign national whose status doesn't allow them to work. Under section 38 you may not employ an illegal foreigner, and you must make a 'good faith effort' to check that anyone you employ is entitled to work. Under section 49(3), knowingly employing someone who isn't allowed to work is a criminal offence: on a first conviction a fine or imprisonment of up to 1 year, up to 2 years on a second, and up to 5 years without the option of a fine for a third or further conviction. If an illegal foreigner is found working for you, the Act presumes you knew unless you can show you made that good-faith effort. So the duty to check the right to work is not new — the Bill would add a civil fine on top of it.
Who it affects — including private households
The Bill speaks of 'a person' who employs, with no carve-out for households, so on its face it reaches every employer — including a family that employs a domestic worker, nanny or gardener. That mirrors how the rest of South African labour law already treats households: the rules don't exempt you just because you have one employee at home, so the same right-to-work duty applies. This isn't aimed at ordinary, compliant households — it targets employing people who aren't permitted to work — but households are clearly within its scope.
The penalty tiers — 'up to', civil, and decided by a court
If the Bill is enacted, the fine for employing someone without the right to work would be a civil penalty — not an automatic ticket, and not a criminal conviction. A labour inspector detects the contravention and the Director-General applies to the Labour Court, which can impose a fine not exceeding R100 000 where there is no previous failure; up to R200 000 if there was a prior failure in the previous three years; and the greater of R1 000 000 or 10% of turnover for a second or further prior failure. 'Not exceeding' means these are maximums a court may impose, not flat amounts. Some news coverage has described the fine as 'per undocumented worker' — that per-worker wording isn't in the penalty clause itself, so it is best read as media framing rather than a settled fact.
What to do: check the right to work
The single thing that addresses the headline is straightforward — make sure anyone you employ is legally allowed to work in South Africa, and keep proof. For a South African, an ID is enough. For a foreign national, you need their valid passport and the visa or permit that authorises that specific employment — a passport on its own isn't enough, because the immigration status itself has to permit the work. Our right-to-work guide walks through exactly what to check and keep on file.
The bigger picture: the everyday fines that are already real
The R100 000 headline is about the right to work, which most households never trip over. The compliance that actually catches ordinary employers out is the day-to-day kind, and it is in force right now: registering and paying UIF (1% from the worker and 1% from you, on earnings up to R17 712 a month, so at most R177.12 each — with penalties of up to 10% plus interest for not paying); registering for COIDA, which every household employer must do since the Constitutional Court's Mahlangu judgment; and paying at least the domestic-worker minimum wage of R30.23 an hour (2026), below which the Department of Employment and Labour can issue compliance orders. This is the compliance Dignita keeps you on top of — a proper contract, monthly payslips, UIF, COIDA and the right wage — so you're covered on the fines that are real today, not just the one in the news. Compliance tool, not legal advice.
Bill status (as of 10 June 2026)
This guide explains a proposed law that is still moving through Parliament. As of 10 June 2026 the Employment Services Amendment Bill was at the introduction stage in the National Assembly and was not yet in force. Parliamentary timelines change — check the current status of the Bill (Parliament's bill tracker and the Department of Employment and Labour) before relying on any specific figure or date, and speak to a professional about your own situation.