Business

Public Servants Association criticises R10,000 fine for hiring undocumented foreign nationals

Mthobisi Nozulela|Published

The Public Servants Association (PSA) has slammed the Department of Employment and Labour’s R10,000 fine for employers

Image: Durban Metro Police

The Public Servants Association (PSA) has slammed the Department of Employment and Labour’s R10,000 fine for employers found hiring undocumented foreign nationals.

This comes after reports that more than 100 undocumented foreign nationals were arrested during inspections at construction sites in Ekurhuleni, with employers facing a fine of R10,000 for each worker found in their employ.

Deputy Minister Jomo Sibiya last week also raised concern about the country’s high unemployment rate. He said the department would step up inspections and take tougher action against employers who violate labour laws.

In a statement released to the media on Monday, the PSA said the fine was “woefully inadequate” and unlikely to deter employers from exploiting undocumented workers.

"The Public Servants Association (PSA) expresses is extremely dissatisfaction with the Department of Employment and Labour’s (DEL) newly announced woefully inadequate penalty of R10 000 per undocumented foreign national found in the employ of non-compliant businesses," the union said.

The union added that the penalty fails to reflect the scale of the problem, saying that many employers benefit from cheap labour.

"This penalty, particularly in the context of South Africa’s severe unemployment crisis, is completely inadequate. The DEL itself acknowledged that the hiring and exploitation of undocumented foreign nationals is a contributing factor to local unemployment and the deterioration of labour conditions".

"A R10 000 fine per unlawfully employed worker is insultingly low and fails to send a clear message to employers who intentionally violate labour and immigration laws"

The PSA called on the department to introduce stronger enforcement measures, including fines proportionate to company turnover.

"If the DEL truly recognises the scale of the problem, it must introduce far harsher penalties, including substantial fines proportionate to company turnover, criminal charges for repeat offenders, confiscation of profits gained from illegal labour practices, and permanent blacklisting from public procurement opportunities".

IOL Business

mthobisi.nozulela@iol.co.za

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