The Employment Services Amendment Bill and Revised Draft Business Licensing Bill raise concerns for the hospitality sector.
Two significant pieces of legislation have emerged in May 2026 that could affect how you hire staff and, in some cases, how your business is structured. We know that keeping up with the volume of regulatory change in South Africa is exhausting, so here is a plain-English summary of what these Bills say, what they could mean for hospitality, and what FEDHASA is doing on your behalf.
FEDHASA is deeply concerned about both Bills and will not be supporting them in their current form. The hospitality industry has, for years, called on government to reduce regulatory burden to make it easier to operate, to hire, to invest. These Bills move in the opposite direction.
Our National Chairperson Brett Tungay has commented: “This is definite government overreach. We are a country in dire need of employment. We should be creating conditions for both local and international business to thrive and create jobs, not legislating people out of the picture.”
That is the position we are taking into every formal submission and parliamentary engagement.
The Short Version
Both Bills are, at their core, aimed at restricting the role of foreign nationals in the South African economy, whether as employees or as business owners. Neither has been finalised, and both are still subject to public comment and parliamentary process. FEDHASA has already submitted formal commentary on both, and we will continue to engage at every opportunity.
Bill 1: The Employment Services Amendment Bill
This Bill was tabled in Parliament in May 2026. It gives the Minister of Employment and Labour the authority to set quotas on the employment of foreign nationals per sector of the economy, per occupational category, or per geographic area. Quotas would be determined after consultation with the Employment Services Board and a public comment process.
The Bill is framed as a measure to protect workers from exploitation and to align our labour law with the Immigration Act and the Refugees Act. In practice, however, it could place meaningful restrictions on who you are legally permitted to employ.
For the hospitality sector, which relies on a wide and varied labour pool, particularly in kitchen, housekeeping, and skilled trade roles, this is worth watching carefully. We do not yet know what sectors or roles might be targeted by a quota, or how strictly those quotas might be applied.
The Helen Suzman Foundation commented on an earlier version of this Bill, describing it as “unworkable and, in all likelihood, an unlawful interference in South African labour markets and in the lives of foreign nationals lawfully residing in South Africa and who have been granted the right to work here.” That critique remains relevant to the current version.
The Bill is expected to be published for formal public comment in the coming months. FEDHASA will participate in that process, and we will keep you updated.
Bill 2: The Revised Draft Business Licensing Bill
This one arrived with less fanfare, and that is part of what concerns us.
The Department of Small Business Development quietly updated the Business Licensing Bill on its website in May 2026, adding a new Clause 17: Reservation of Certain Business Activities and Sectors. This clause gives the Minister the power to designate certain business activities or entire sectors as reserved, meaning they could be restricted to South African citizens, or to entities majority-owned and controlled by South African citizens.
The amendment was not formally gazetted, was not published by the Government Printer, and no public comment period has been offered. FEDHASA’s legal advisors have flagged this as procedurally irregular.
The implications for hospitality are significant. International hotel groups, foreign-owned franchise brands, and cross-border investors all contribute meaningfully to South Africa’s hospitality economy, creating jobs and driving tourism. A blanket reservation of certain sectors for South African-owned entities could deter exactly the kind of inward investment our industry needs.
FEDHASA has made a formal submission on this Bill. We are also monitoring whether and when it will be published for comment through the proper legislative channels.
What This Means for You Right Now
There is no immediate action required. Neither Bill is yet law, and the public comment and parliamentary processes take time. Here is where things stand:
- The Employment Services Amendment Bill will be published for public comment in the coming months.
- The Business Licensing Bill amendment has not yet been formally gazetted; its comment process is unclear.
- FEDHASA has already submitted formal commentary on both and will continue to engage throughout the legislative process.
We will send updates as these Bills progress. If you have specific concerns about how either Bill might affect your business, reach out to us directly – your experience on the ground is exactly the kind of evidence that strengthens our submissions.
You can access FEDHASA’s full formal submissions on both Bills via the links below:
FEDHASA’s submission on the Employment Services Bill
FEDHASA’s submission on the revised Draft Business Licensing Bill
