Big changes to employment of foreign nationals on the horison

The South African Cabinet has officially approved the National Labour Migration Policy (NLMP) 2025 White Paper and the Employment Services Amendment Bill, 2021 (ESAB) for implementation and submission to Parliament, marking a significant evolution in the nation’s approach to labour migration. These reforms introduce substantial changes to the employment of foreign nationals in South Africa, with far-reaching implications for employers across key economic sectors.

The NLMP 2025 White Paper outlines a comprehensive framework governing the movement and employment of foreign nationals in South Africa. Its vision is to ensure robust government leadership, in partnership with social partners and key stakeholders, to facilitate safe, orderly, and regular labour migration. It encompasses provisions for highly skilled, semi-skilled, and low-skilled workers, aligning migration management with South Africa’s broader socio-economic priorities. The ESAB establishes the legal mechanisms necessary for enforcing the new policy, including setting and monitoring sectoral quotas, and harmonising the Immigration Act and Refugees Act with the NLMP’s objectives.

The NLMP identifies four key areas of intervention:

• Labour Migration Governance and Management: Introduction of clear regulatory and oversight mechanisms to ensure compliance and interdepartmental coordination.

• Protection of Migrant Workers’ Rights: Commitment to equal treatment and robust protection of all workers, regardless of nationality.

• Labour Market Integration: Policies to ensure both South Africans and foreign nationals can contribute to and benefit from economic opportunities in a balanced manner.

•International Cooperation: Alignment of South Africa’s labour migration policies with international standards and regional agreements.

It also introduces several substantive measures to enhance the management of labour migration:

• Sectoral Quotas: Explicit quotas are set for the employment of foreign nationals in key economic sectors such as agriculture, hospitality, tourism, and construction. These quotas aim to safeguard job opportunities for South Africans while permitting recruitment of essential skills from abroad.

• Business Visa Restrictions: New restrictions on issuing business visas in certain sectors aim to prevent market oversaturation and protect local entrepreneurship.

• Limits on Foreign-Owned Enterprises: Restrictions on foreign nationals establishing small, medium, and micro enterprises (SMMEs) and trading in designated sectors align with amendments to the National Small Enterprise Act.

• Quota Exemptions: Employers may exceed sectoral quotas only when critical skills are required or when an exemption is granted by the Minister of Employment and Labour.

A central theme of the NLMP is balancing economic growth and skills development with prioritising employment for South African citizens, permanent residents, and refugees. The policy is designed to attract highly skilled workers—addressing the need for “brain gain”—while implementing measures to mitigate the outflow of local talent.

This policy represents South Africa’s first comprehensive national labour migration framework. It complements the Department of Home Affairs’ White Paper on International Migration (2017) and related legislative reforms, providing clearer rules, more predictable outcomes, and a stronger focus on aligning migration with the country’s economic and social objectives.

The next steps following Cabinet’s approval on 28 May 2025, is that the Employment Services Amendment Bill (ESAB) will be submitted to Parliament for debate and adoption, which is required before full legal implementation can occur. Meanwhile, the National Labour Migration Policy (NLMP) 2025 White Paper is approved for immediate implementation as government policy to regulate foreign employment through quotas and sector restrictions.

Employers should begin preparing now, as the Minister of Employment and Labour will soon have the authority to set and enforce limits on the number of foreign nationals employed in key sectors such as agriculture, hospitality, tourism, and construction. The exact timing for when these quotas and restrictions become enforceable depends on Parliament passing the ESAB and the subsequent promulgation of related regulations.

Through these reforms, the South African government aims to manage labour migration in a way that supports national development, protects the rights of all workers, and responds effectively to the evolving needs of the domestic labour market.

Image credit: Freepik