Proposed Quotas on Foreign Nationals: a poor reaction to high unemployment rates

Amidst rising unemployment rates, exacerbated by the long-term effects of COVID-19, a perception has grown that foreign nationals are frustrating South African’s access to employment, or ‘stealing our jobs’.  

In what may be interpreted as a xenophobic reaction to a multi-faceted issue, the State announced its intention earlier this month to introduce new employment quotas on foreign workers, as well as limiting foreigners from starting small and medium businesses in certain sectors, which could have drastic effects for those having come to South Africa from countries such as Zimbabwe, Mozambique and Lesotho in search of a better future.

In what the Minister of Labour termed ‘the rapid expansion of international migration flows’, in which employers were exploiting desperate foreign nationals and ‘distorting the labour market’ he said the government’s response needs to be an effective labour migration policy akin to those implemented internationally.

The Employment Services Amendment Bill, together with the National Labour Migration Policy, intends to implement quotas that would apply not only to those who fall under the traditional definition of an employee, but also independent contractors and gig workers, for example, Uber drivers.

Some of those opposed to the Bill have commented that the number of foreign workers has declined in recent years, representing only 4% of the population and 7% of the work force, and those remaining are largely ‘legacy foreigners’, namely persons who have been in the country for many years prior.

In terms of the proposed legislation, companies which do not adhere to the quotas may be liable to a fine of up to R100 000.00, unless the company is able to show that no South Africans with the skill set required for the job could be readily employed. The policy further empowers the Minister to authorise a labour inspector to monitor and ensure enforcement of the provisions of the Act. 

At least off the face of it, this seems to implement further red tape and stringent regulations with which South African businesses must comply, over and above those in terms of the Broad-Based Black Economic Empowerment Act.

The proposed legislation and policy will be available for comment for 90 days, after which it will be referred back to Cabinet to be finalised.

For more information kindly email us on info@hjw.co.za.

Written by Dyllon Nicholls.

This article is provided for informational purposes only and should not be substituted for legal advice on any specific matter. Any opinions expressed herein are subject to the law as at the time of writing and will change in accordance with any change in the law. We recommend that you contact HJW ATTORNEYS at info@hjw.co.za directly for advice applicable to your specific matter.