10-06-2026 12:00:53 (GMT +02:00) Pretoria / Cape Town, South Africa

Businesses to be fined if 60% of staff are not from SA
06. Feb. 2017 - IOL

Minister of Home Affairs Malusi Gigaba File picture: Oupa
Mokoena/Independent Media
Cape Town - The Department of Home Affairs has promised a crackdown on
businesses not complying with legislation that at least 60% of its
staff complement comprise South African citizens.


Widespread noncompliance appeared to be prevalent in the hospitality,
construction, agriculture and mining sectors, Minister Malusi Gigaba
said, adding that the department’s intervention comes amid “grave
concerns” from citizens, communities and government departments.


Last week Gigaba met role players in the hospitality industry,
including hotel and restaurant owners and managers, to address “the
high rates of immigrant employment in the country”.


“It was an open and frank meeting from which I expect measurable
benefits for the country and citizens,” Gigaba said.
“The requirement to employ 60% citizens came out strongly, with all
acknowledging its importance. There was consensus on dire consequences
of failure to respond and the impact on communities, as well as on
balancing international migration with security needs of the
state.”


Gigaba said department officials would be conducting surprise
inspections.


Businesses found to be on the wrong side of the law would be fined
heavily and have their licences reviewed, while managers and owners
could be jailed for up to two years if legal action was taken by the
department.


“The crux of the matter, as observed, is that many businesses do not
hire South African



 

workers, preferring migrants,” Gigaba said.
Such employment practices were to blame for some of the incidents of
attacks on foreign nationals.


“It is a matter we cannot put aside, thus its prioritisation going
forward. And so we have resolved this year to pay serious attention to
this matter, even to contain possible threats that may arise from
mismanagement of the situation.”


Gigaba said the meeting with the hospitality industry representatives
was fruitful.


“They were honest to concede that the problems were concerns that had
been raised with them before, especially in hospitality, construction
and mining. Among other things, they agreed to raise awareness on the
dangers and consequences of employing undocumented people, including
the risk on their part of jeopardising their licences.


“The sector welcomed the initiative we took and agreed to do all in
their power to ensure its objectives are met,” Gigaba said.


Provincial Economic Opportunities MEC Alan Winde said he was aware of
the department’s intervention.


“Cape Town and the Western Cape is positioning itself as a global
region which welcomes foreign businesses and employees. This talent
contributes to our economy."


“As with all businesses, local and foreign, the laws of the country
should be adhered to,” Winde said.


Gigaba said his department would next engage the construction and
agriculture V.1886

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