Corporate Immigration 2024

Last Updated June 25, 2024

South Africa

Law and Practice

Author



Chris Watters Attorneys was established in 1989. The firm is located in Bedfordview, Johannesburg, South Africa. The firm has been involved in immigration (including citizenship and refugee) law for over 30 years. For the last 20 years, the firm has focused exclusively on immigration law. Over the last 15 years, the firm’s client base has become primarily corporate. The primary sources of work include client referrals and other law firms. To support its client base around the country, it has close working relationships with immigration law firms in Pretoria, Cape Town, Durban and Port Elizabeth. Since the advent of South Africa’s constitutional democracy in 1994 and the establishment of a Constitutional Court as the apex court, the firm has had five matters in that Court which established precedents and expanded the rights of foreign nationals in South Africa.

The key drivers of South Africa’s immigration policy are as follows.

  • The South African economy is slowly recovering from pandemic-driven shocks and, as a result, the country has been battling high levels of unemployment especially amongst the youth.
  • There is little substantive research about immigration into South Africa. Therefore, there is little accurate information to inform immigration policy. The characteristics of economic migration to the Republic of South Africa are also misunderstood. 
  • The perception that foreign nationals, whether documented or undocumented, whether blue or white collar, deprive South Africans of work – however skilled or unskilled – and business opportunities, is a major political consideration.
  • South African immigration is managed by the Immigration Act, 13 of 2002.

The Department of Home Affairs in South Africa, which oversees immigration matters in South Africa, is trying to manage widespread criticism by business that a combination of its officials and red tape actively hinders the importation of needed skills and workers. 

This has led to various positive measures in the last six months, such as:

  • the Trusted Employer Scheme; 
  • the ongoing roll-out of an e-visa system; 
  • a soon-to-be announced introduction of a remote working visa; and
  • simplifying the visa and permit adjudication processes. 

However, in April 2024, the Minister of Home Affairs published a White Paper on South Africa’s immigration policy – with the term “immigration” being used in its widest sense. This policy paper promises: 

  • a widespread crack down on the country’s supposedly porous borders; 
  • a tightening up of work visa requirements by way of the introduction a points-based system; and
  • to make it more difficult for temporary residents to obtain permanent residence permits and to naturalise as South African citizens in the Republic of South Africa.

These policy goals are to be achieved by way of a complete overhaul of South Africa’s immigration and related legislation into single omnibus Act. The Minister of Home Affairs has announced that draft legislation will be tabled in Parliament as a matter of urgency. Realistically, that will likely only happen in 2025 at the earliest.

Short-Term Visas (For Periods up to Six Months)

Section 11(2) of the Immigration Act authorises a visa to be issued to allow an expat to be deployed in order to work “at” a company in the Republic of South Africa but not “for” that South African company. This visa is issued for three months and can be extended for a further three months.

Section 11(1) authorises a visa to be issued for up to three months to allow an expat to travel to the country in order to attend board meetings, trade exhibitions, explore business opportunities or to give training. It too can be extended for a further three months.

Long-Term (Sponsored) Work Visas

  • The Intra-Company Work Visa provides for the situation where the expat is deployed to work at a company in the Republic of South Africa for a period of up to four years but will remain employed by the company which sends the expat to South Africa for the duration of the visa.
  • The Critical Skills Work Visa is to be applied for where the expat will be employed by the South African company for a period of up to five years, in a field that is defined to be a critical skill.
  • The General Work Visa can be issued for up to five years. It is to be applied for where the expat will be employed by a South African company but does not have a critical skill. The South African employer will have to first satisfy the Department of Employment and Labour that it was unable to find a similarly skilled South African citizen (which term includes permanent resident) to fill the post.
  • The Corporate Work Permit is to be applied for by the employer where it needs to employ large numbers of expats (such as in mining and agriculture) and satisfies the Department of Employment and Labour as well as the Department of Home Affairs that it was unable to find South African citizens to fill the posts. If approved, the employer will then be able to recruit expats located outside South Africa.

There are a number of different types of unsponsored work visas, as set out below.

Long-Term Visitor Visa

Long-Term Visitor Visas are available for the following work-related activities:

  • an academic sabbatical;
  • voluntary or charitable activities;
  • research;
  • teaching at an international school;
  • in respect of films and advertisements produced in South Africa, including, but not limited to, an actor, cameraman, hairstylist, make-up artist or lighting and sound engineer;
  • a foreign journalist seconded to the Republic by a foreign news agency;
  • a visiting professor or lecturer or an academic researcher;
  • an artist who wishes to write, paint or sculpt (provided that the individual submits a portfolio of their previous work);
  • a person involved in the entertainment industry, travelling through the Republic to perform; and
  • a tour leader or host of such a tour.

Spousal Visas

A Spousal Visa is available to the spouse of a South African citizen where the couple have been cohabiting for at least two years or are married and the expat spouse wishes to work or be self-employed. There is no skills or Department of Labour checking for these cases.

Relatives Visa

A Relatives Visa grants permission to work without a skills requirement or checking by the Department of Employment and Labour. This is available where the expat is responsible for the support and upkeep of a child in the Republic of South Africa and does not qualify for the spousal visa.

Study Visa

With a Study Visa, a student registered at a tertiary institution is allowed to work on a part-time basis for up to 20 hours a week without needing the prior authority of the Department of Home Affairs.

Exchange Visa

With an Exchange Visa, an expat under 25 years of age can get permission to work for up to 12 months on condition a local employer undertakes responsibility for the maintenance and upkeep of the young expat. There is no skills requirement or checking by the Department of Employment and Labour.

Business Visa

In respect of an investment into South Africa, the only applicable visa is the business visa.

Where the expat is establishing a new company or buying a controlling stake in an existing company in the Republic of South Africa, the expat must obtain a Business Visa. This is usually issued for up to four years and is renewable. Business Visas are not issued for enterprises which are in sectors that are deemed to be undesirable. The Department of Home Affairs maintains a schedule of undesirable business activities. The Department of Trade, Industry and Competition must also first give its approval for the business visa application.

The key requirement is that the visa applicant must demonstrate that they have in excess of ZAR5 million available offshore to invest in the South African company. Alternatively, it will be sufficient for the applicant to show that some or all of the funds have been brought into the Republic of South Africa. The investment can also be in a mix of cash and capital.

If approved, the business visa will be issued on the condition that the visa holder submits proof within two years that the funds have been brought into the country and are still reflected in the company books.

All visas are endorsed with the activity that the expat has been authorised to undertake whilst in the Republic of South Africa whether this is to run a business, to be employed, to study, etc. In terms of South Africa’s Bill of Rights, visas cannot restrict or otherwise manage any other activity on the part of the expat other than that described in the visa. 

There are other activities which expats may not undertake or which are subject to conditions. These restrictions are contained in legislation managed by other government departments and are not overseen by the Department of Home Affairs.

On 20 May 2024, the Department of Home Affairs gazetted the introduction of a remote working visa. A key feature of this visa category is that the applicant can either be employed by an offshore company or be an independent contractor working for an offshore company. The applicant’s income must be “foreign-sourced”. If the applicant seeks a remote working visa that is valid for more than six months in a 36-month period, the applicant must register with the South African Revenue Service. If the applicant seeks a remote working visa for a period that is less than six months in a 36-month period, the applicant may apply for an exemption from taxpayer registration from the South African Revenue Service. The Department of Home Affairs has as yet not gazetted the specific requirements that will be required for an application for a remote working visa.

There are no prescribed language requirements in order to apply for a visa of any kind. 

However, all documents forming part of a visa application must be in English and the applicant must submit the application in person to a South African Embassy where they may be asked about their application. That process may therefore indirectly impose an English-language requirement.

All persons applying for a visa for a period in excess of six months must submit a medical certificate.

Radiological reports are no longer required.

A person who has travelled to or transited a yellow-fever country must produce a copy of their WHO yellow fever vaccination card.

The COVID-19 vaccine is no longer a requirement.

Intra-Company Transfer Work Visas

The key features/requirements of the Intra-Company Transfer Work Visa are as follows.

  • The employee has to have been employed by the foreign company for at least six months before the Intra-Company Transfer Work Visa application is submitted.
  • The employee must remain employed by the offshore company for the duration of the Intra-Company Transfer Work Visa.
  • The Intra-Company Transfer Work Visa cannot be changed whilst it is still valid and the person remains in South Africa – other than through a company buyout.
  • The company in South Africa to which the person is being deployed must be a branch, subsidiary or affiliate of the foreign company sending the individual to South Africa.
  • The company in South Africa must already be conducting operations.
  • The Intra-Company Transfer Work Visa is issued for periods between six months and four years. The period is dictated by the deployment contract and the term left on the applicant’s passport. This Visa cannot be extended beyond the four years.
  • A skills transfer plan will be required as part of this visa application. As a matter of practice, the plan must set out which skills the individual will transfer – how and when – to South African employees at the South African company.
  • If after the individual’s visa has expired and they have gone home but thereafter need to return to South Africa after their visa has expired in order to complete tasks etc, then a second Intra-Company Transfer Work Visa must be applied for.
  • Whilst there is no formal law on the matter, policy is that the person being sent out should be a senior or other key executive being sent out to fill a key post, but there is some flexibility on this. The applicant should be in a senior position within the offshore company. Similarly, a low salary will imply that that the applicant is not in a senior post, irrespective of their job title.
  • Other than as stated above, there are no prescribed minimum qualifications or thresholds to be met by an applicant for an Intra-Company Transfer Work Visa in order to work at a company in South Africa.

Critical Skills Work Visas

There are approximately 150 professions or skills that are deemed by the Department of Home Affairs to be “critical”. The schedule of such professions/skills stipulates the minimum academic or other requirements the applicant must already have in order to qualify for a Critical Skills Work Visa. The Department of Home Affairs aims to update the schedule of critical skills on an annual basis. Whilst there is no prescribed minimum salary and benefits package, informally the fact that an applicant such as a chemical engineer will be paid a token salary package will warrant close scrutiny.

  • If the expat who is looking to be employed in South Africa by a South African company satisfies the Department of Home Affairs that the individual has one of those skills/qualifications, they will be issued with a Critical Skills Work Visa.
  • To show that they have the required skill or qualification for the Critical Skills Work Visa, the visa applicant must obtain and supply confirmation of this from the appropriate professional body in South Africa which has regulatory oversight in respect of that profession.
  • If the person has secured employment in South Africa, the visa will be issued for five years. Alternatively, if the applicant submits proof that they have applied for the necessary professional requirement which application is still pending, it can be granted for up to 12 months to allow the person to submit confirmation of that membership.

General Work Visas

There is no prescribed minimum salary or similar threshold in order to qualify for a General Work Visa. However, and as with the Critical Skills Work Visa, whilst there is no prescribed minimum salary and benefits package, informally the fact that an applicant for a senior position (such as a company’s chief executive) will be paid a token salary package will similarly warrant close scrutiny.

Because the General Work Visa applicant does not have a critical skill, the intended employer must first submit proof to the Department of Employment and Labour that it properly advertised the vacancy in the national media and was thereafter unable to find a similarly skilled South African citizen or permanent resident to fill the post and that the expat is the best candidate for the position. In such cases, it is not uncommon for the Department of Employment and Labour to furnish the South African company with a list of South African citizens which it has on its databases and to require the company to interview and assess those persons. If after screening those candidates, the South African company still cannot find a suitable South African candidate to fill the position and the Department of Employment and Labour is not persuaded that the South African company has conducted a proper search, it will issue the Department of Home Affairs with a “negative recommendation”. The visa applicant is not told of the contents of that report and is told merely to proceed with their application. In reality that negative recommendation will result in the subsequent General Work Visa application being declined.

The process of applying to the Department of Employment and Labour and getting its report will usually take anything between two and nine months. 

The visa applicant can instead first apply to the Minister of Home Affairs to waive the whole Department of Employment and Labour-scrutiny process as being a requirement for the General Work Visa application. The applicant has to satisfy the Minister that they have very good reasons to justify such a waiver. Currently, the waiver process is taking considerably longer than the advertisement route. 

All employment-based work visas are limited to a specific employer. That South African employer will be named in the visa. 

There is no prescribed or guaranteed visa processing time provided for in South Africa’s immigration laws. There is also no procedure for seeking an expedited outcome.

Short-Term Visas

South African embassies strive to process Short-Term Visas in approximately ten working days. It is, however, not unknown for some embassies to take considerably longer, especially if there are problems with the application paperwork.

Visa applications submitted inside the Republic of South Africa are likely to confront the ongoing massive visa adjudication backlog. It is not unknown for a Short-Term Visa application to take a year or more.

Long-Term Visas

South African embassies strive to process Long-Term Visas in approximately 35-40 working days. It is, however, again not unknown for some embassies to take considerably longer, whether due to work volumes or problems with the application paperwork.

In-country work-related visa applications are benefitting from the government’s undertaking to expedite such applications. Results are now being obtained in as little as two weeks.

Non-work-related visa applications submitted inside the Republic of South Africa will join the ongoing massive visa adjudication backlog. It is not unknown for non-work-related long-term visa application to take years to be processed.

The Trusted Employer Scheme

The Trusted Employer Scheme is a pilot project at present managed by the Department of Home Affairs. After assessing how the pilot scheme has worked, that Department will decide whether to announce a second round of applications.

The primary benefit of Trusted Employer Scheme status is that much-improved timeframes for deciding long-term work visas (and visas for accompanying families, etc) are promised whether in-country or at embassies. The Department of Home Affairs has announced that this turnaround time will be approximately two weeks. The Department is keeping to these timeframes at present.

There are also some concessions about visa requirements. 

The essence of the Trusted Employer Scheme is that qualifying employers will be allowed or “trusted” to prepare and submit visa applications to the Department of Home Affairs or to a South African embassy having jurisdiction, the paperwork will be accepted in good faith and the visa(s) will be issued without the Embassy or Department screening the actual paperwork. This will help reduce irrational decisions and the timeframes. The intended employee would still have to meet the requirements for the specific work visa being applied for.

In October 2023, the Department of Home Affairs provided final details of the scheme, how a company qualifies, along with the application form and documents to support such an application. 

The minimum qualifying criteria for the Trusted Employer Scheme pilot project are:

  • the South African company must have a minimum of 100 employees; and
  • the company must either have pledged an investment into South Africa of over ZAR100 million, proven investment since 2018 or historical fixed capital investment (but not operational expenditure) in excess of ZAR100 million.

There was also a sectoral qualification requirement. The broad sectors into which the South African company must fall are:

  • manufacturing;
  • advanced manufacturing;
  • services;
  • resource-based industries;
  • energy; and
  • infrastructure.

Whether a company fits into one of these sectors requires that the company obtain formal certification by the Department of Trade, Industry and Competition – which certification must be included in the application.

Where the South African host company is a member of the Trusted Employer Scheme, the Department of Home Affairs is processing those applications in about two weeks. 

This also applies to Trusted Employer Scheme-sourced applications which are submitted at a South African embassy. In other words, where the person will be taking up employment for or at a South African company, the visa application must include a copy of that company’s membership of the Scheme, and the application will be processed on the basis of the terms of the Scheme.

One of the requirements for a visa application submitted at a South African Embassy is that, as a matter of practice, the applicant’s passport must accompany the application. It will be retained by the South African Embassy until the application has been adjudicated.

If the applicant advises the South African Embassy that they need to retain their passport, more often than not the South African Embassy will return the passport and the application to the individual and instruct them to re-submit the application once they are in a position to also submit their passport.

Some Embassies will accept the visa application without the passport; this occurs where the applicant is not a citizen of the country in which the South African Embassy is located.

There is no mechanism whereby visa processing times at South African Embassies or in-country can be expedited.

Once a visa has been granted and the visa-holder has entered the Republic of South Africa as allowed by the visa, the individual must comply with the conditions of their visa. 

Critical amongst these conditions is that if the individual exits the country with an expired visa, they will be banned from returning to the country for a period that is determined by the duration of the overstay. 

A copy of the visa and passport must be supplied to the host South African employer.

The filing fees for a short-term work-related visa range from ZAR450 to ZAR2,500.

The fees for a long-term work-related visa range from ZAR1,520 to ZAR3,600.

These fees exclude the costs of disbursements such as for the authentication of documents or the verification of an applicant’s skills.

Some embassies require that the visa fees must be paid in advance whether electronically or by credit card to the South African embassy. In this case, the fees may be paid by the employer.

Where that is not provided for, the applicant must pay the visa fees upon submission of the application; in this event, the applicant needs to make that payment.

In accordance with Section 48 of the Immigration Act (the “Act”), all visitors to the Republic of South Africa bear the duty of ensuring that they are in South Africa on the correct visa.

The individual cannot “hide behind” an error that might have been made by the embassy ‒ even if the South African embassy makes the mistake and the visa-applicant had no part in that mistake.

Section 49 of the Act makes it a criminal offence for a foreign national to either:

  • not have a valid visa; or 
  • to have the incorrect visa, having regard to what the individual is coming to do in the Republic of South Africa. As a minimum, a court may impose a fine or a custodial sentence of up to two years. 

Anecdotally, if convicted, court practice for a first offence appears to be a custodial sentence of six months whereafter the person will be deported. 

A person who has been deported is automatically deemed to be a “prohibited person”. 

This sanction carries a lifetime ban from qualifying for a South African visa. One can approach the Department of Home Affairs to have this prohibition lifted. However, a person who has been deported cannot make such application until they have been absent from the country for at least four years.

Due to its non-extra-territorial nature, the Act does not make provision for sanctions in respect of errors committed by the offshore company as part of the application. However, embassy officials have been known to “flag” serially errant offshore companies which would subject future visa applications which they have sponsored to extra-rigorous assessment.

Section 38 of the Act imposes a duty on all employers in the Republic of South Africa to “make a good faith effort” to ensure that all persons working at their facilities are properly authorised or permitted to undertake that work. The term “good faith effort” is not defined. 

Section 49 also makes a contravention of Section 38 a criminal offence for the South African company and/or the human resources person responsible for engaging the expat(s). 

The custodial sentence can be for up to five years or longer for repeat-offender employers.

Section 38 of the Immigration Act imposes a duty on all employers in the Republic of South Africa to “make a good faith effort” to ensure that all persons working at their facilities are properly authorised or permitted to undertake that work.   

The Department of Home Affairs deploys inspectors to conduct workplace inspections. These inspectors have sweeping powers, but due to capacity limitations, the inspections tend to focus on “high-risk” sectors such as fast-food and hospitality.

Family members who will be accompanying an individual who has been granted a Long-Term Visa to work in South Africa qualify to apply for a Section 11(1)(b)(iv) visitor visa as read with Regulation 11(4)(a) to the Act:

  • this visa can be applied for the spouse or dependent child of the holder of a long-term visa; and
  • a spouse includes anyone who is married.

The term “spouse” also includes an unmarried person who has been in a long-term spousal relationship for a period in excess of two years. The term excludes the accompanying spouse who is in a pre-existing spousal relationship – for example, they are in a marriage which has not been terminated. 

The term “dependant child” is not confined to children who are minors.

This visa can be issued for up to three years and is extendable from within the Republic of South Africa.

The Section 11(1)(b)(iv) visa does not give the accompanying spouse permission to work in the Republic of South Africa – it expressly excludes permission to work, whether paid or unpaid.

If the accompanying spouse wishes to work in the Republic of South Africa, the individual must meet all the requirements of whichever type of work-related visa they qualify to apply for.

Chris Watters Attorneys

10 Penhurst Avenue
Essexwold
Bedfordview 2007
Johannesburg
South Africa

+27 11 454 3309

+27 11 454 1318

mail@chriswatters.co.za www.chriswatters.co.za
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Trends and Developments


Author



Chris Watters Attorneys was established in 1989. The firm is located in Bedfordview, Johannesburg, South Africa. The firm has been involved in immigration (including citizenship and refugee) law for over 30 years. For the last 20 years, the firm has focused exclusively on immigration law. Over the last 15 years, the firm’s client base has become primarily corporate. The primary sources of work include client referrals and other law firms. To support its client base around the country, it has close working relationships with immigration law firms in Pretoria, Cape Town, Durban and Port Elizabeth. Since the advent of South Africa’s constitutional democracy in 1994 and the establishment of a Constitutional Court as the apex court, the firm has had five matters in that Court which established precedents and expanded the rights of foreign nationals in South Africa.

The Transfer of Skills by Foreign Workers to South African Citizens

The background

It is a political and strategic necessity for the Republic of South Africa to reduce the ticking time bomb that is posed by the current high unemployment rates, especially amongst the country’s youth. And, even if only as a minimum step, the Republic needs to be seen to be trying to reduce un- or underemployment. 

South Africa’s immigration legislation obviously has a very important role to play in that process especially in ensuring that, however it might best be done, expats working in South Africa share their skills with South African workers. 

There is a widespread assumption within government circles that this skills-sharing practice is not only not generating the desired outcomes but that the business sector is actually reluctant to play its part. On the other hand, and whereas employers actively support the government’s overall objective in this regard, there is equally a widespread concern within organised business that the government’s current measures are costly and are determined without a proper understanding of the reality of how businesses operate in the real world, and that consequently, the present measures do not generate the desired outcomes. 

The current requirements need, in consultation with organised business, to be finessed if they are to succeed. But as indicated below, the issue is significantly more complicated than might appear at first blush.

The applicable legislation

Immigration law in the Republic of South Africa is currently managed by the Immigration Act, 13 of 2002. The purpose of the Immigration Act is stated very broadly, and in summary, to be:

“To provide for the regulation of admission of persons to, their residence in, and their departure from the Republic; and for matters connected therewith.”

This Act has an extended Preamble which sets out a collection of broad immigration policy statements for the Republic of South Africa.

The following principles contained in the Preamble to the Immigration Act, are of relevance here.

“In providing for the regulation of admission of foreigners to, their residence in, and their departure from the Republic and for matters connected therewith, the Immigration Act aims at setting in place a new system of immigration control which ensures that ‒

[...]

(e) economic growth is promoted through the employment of needed foreign labour, foreign investment is facilitated, the entry of exceptionally skilled or qualified people is enabled, skilled human resources are increased, academic exchanges within the Southern African Development Community are facilitated and tourism is promoted.

[...]

(h) the South African economy may have access at all times to the full measure of needed contributions by foreigners.

[...]

(j) a policy connection is maintained between foreigners working in South Africa and the training of our citizens.”

When it comes to sourcing needed skills offshore, an increasingly important theme of South Africa’s immigration law is the requirement that an expat in South Africa on a long-term work visa, “should” transfer some or all of their skills to one or more South Africans citizens (or permanent residents) employed in the company at which the expat is or will be working. 

In this regard, Regulation 18(9)(c) to the Immigration Act, states that:

“[...] the relevant employer shall ensure that –

(c) a plan is developed for the transfer of skills to a South African citizen or permanent resident.”

The skills transfer plan debate

At this time and in terms of the requirements of the Department of Home Affairs – which oversees all visa applications – the skills transfer plan needs only to be prepared and submitted with a visa application documentation where the individual is applying for an Intra-Company Transfer Work Visa.

By way of a caveat, what is stated here is correct as at the date of this opinion. However, the Minister of Home Affairs announced in April 2024 that South Africa’s Immigration Act, 13 of 2002, will be the subject of a massive overhaul with a view to creating omnibus legislation that absorbs other related legislation. Whilst the Minister has indicated that this should happen as a matter of urgency, the draft legislation will likely only be tabled in Parliament next year. So, it may be that whereas the skills transfer plan requirement is currently policy-based, it will likely be incorporated into the new legislation.

In any event, the writing appears to be on the wall that a skills transfer plan will become a requirement, irrespective of the visa being applied for, wherever an expat will be working in South Africa. 

Based on the logic underpinning the need for these plans, it makes little sense from the perspective of both the Department of Home Affairs and the Department of Employment and Labour not to extend the skills transfer requirement to wherever an expat is engaged in the South African economy.

As the centrality of this requirement filters through immigration law, policy and practice, employers will have to factor this into both their strategic thinking and budgets.

However, this is a lot easier said than done.

Both the Department of Home Affairs and the Department of Employment and Labour in South Africa are the drivers of this requirement at present. 

This multi-departmental feature is however problematic. When viewed together with related political developments in the last couple of years, this dual oversight points to the possibility of there being either an ongoing or looming “turf war” between the two Departments as to which is responsible for setting the standards and for oversight of expats in the workplace. This can never be good for employers – or their employees.

An example of this looming “tension” is evident from a scrutiny of the provisions of the Employment Services Act, 4 of 2014, which is legislation administered by the Department of Employment and Labour.

Section 2(1)(h)(iii) of this Act records that one of the objects of the Act is to:

“(h) facilitate the employment of foreign nationals in the South African economy, where their contribution is needed in a manner –

[...]

(iii) that promotes the training of South African citizens and permanent residents.”

Continuing this theme, Section 5(1) of the Employment Services Act provides that:

“[t]he Department must provide the following public employment services free of charge to members of the public in a manner that is open and accessible:

[...]

(i) facilitating the employment of foreign nationals in a manner that is consistent with the object of this Act and the Immigration Act; [...]”.

In terms of Section 8 of the Employment Services Act:

“(1) An employer may not employ a foreign national within the territory of the Republic of South Africa prior to such foreign national producing an applicable and valid work permit, issued in terms of the Immigration Act.

(2) The Minister may, after consulting the Board, make regulations to facilitate the employment of foreign nationals, which regulations may include the following measures:

[...]

(c) preparation of a skills transfer plan by employers in respect of any position in which a foreign national is employed.”

As can be seen from the above, Section 8(2)(c) of the Employment Services Act provides for the Minister of Employment and Labour to make regulations on the content of skills transfer plans for foreign employees. The Department of Home Affairs does not have any such legislation or regulations. 

A further issue of concern is that Section 8(2)(c) contemplates requiring that there be a skills transfer plan in place “in respect of any position in which a foreign national is employed”. Whereas skills transfer plans are currently only required for a person in the county on an Intra-Company Transfer Work Visa, this would extend considerably the skills transfer regime requirement for employers to being needed in respect of any post which is occupied by a foreign national.

The Department of Home Affairs has had skills transfers as a policy-based requirement for many years. Initially the requirement was that the host employer had to give an undertaking, as part of an Intra-Company Transfer Work Visa application, that it would see to a transfer of skills. This has evolved over the years to the present requirement. Currently Intra-Company Transfer Work Visa applications must include a formal skills transfer plan which lays out what skills are to be transferred by whom, when and how, to whom. The plan must identify by name those employees who are the intended beneficiaries of the plan. The plan must include copies of the employee’s employment contracts and certified copies of their South African identity documents.

The fault lines

There are some fundamental weaknesses in the current policy that requires skills transfer plans especially if these plans are, or will be, required wherever an expat is in employment in South Africa.

A fact of economic life is that of labour mobility. So, an employer can dedicate significant resources to a skills transfer programme seeking to empower employees only to have one or more of those employees move on to a position in another company. Employees cannot be obliged to stay in their posts. And equally employers have no control at all over the timing of an employee’s departure. How should that affect the skills transfer plan? 

Another flaw in the current thinking underpinning skills transfer plans is the assumption that one or all of an expat’s skills can be acquired by the nominated South African employees over the course of four to five years, or even less. These plans have to take into account and the Departments have to allow for the possibility that the expat may be a poor trainer or that the employees are not disposed to being trained by the trainer or anyone for whatever reason.

A related flawed assumption of these plans is that an expat can in effect produce a clone of themselves over the course of the expat’s deployment to, or employment in, South Africa. This is also known as the “Messi syndrome”, which suggests that were a South African football team able to secure the services of Lionel Messi for a four-year period with a skills transfer plan in place, after some four or five years of meticulous implementation of the plan, that team will have one or more persons in the team with the same footballing skills as Lionel Messi. That just does not happen in reality.

And mindful of the intended expansion of the skills transfer plan requirements as contemplated in Section 8(2)(c) of the Employment Services Act – referenced above ‒ the Immigration Act makes provision for a number of visa types where the holder is allowed to work in South Africa but with that work being a secondary activity for the purposes of that visa. 

One of the most common examples of a visa that allows employment as a secondary activity is the spousal visa, issued in terms of Section 11(6) of the Immigration Act. This visa can be granted to the qualifying spouse of a South African citizen. The Section 11(6) spousal visa allows the foreign national to accompany their South African citizen spouse as their primary activity whilst in South Africa and to undertake employment in South Africa. 

But critically there is expressly no requirement for this visa type that the employer must first meet the requirements for an ordinary work visa or that the employer must first get the approval of the Department of Employment and Labour before appointing the expat. The foreign spouse can be authorised to work in any lesser skilled post such as in the kitchen of a fast-food outlet or to wash cars. These persons are not being employed with the intention that in four or five years’ time they will leave the country. 

Consequently, requiring the employer to have a skills transfer plan in place would be quite inappropriate.

It has to be assumed that the next evolutionary stage with these skills transfer plans, if not as soon as part of either the new Act or the Employment Services Act, is that the employer will be required to demonstrate that their plan is sustainable and that the employer will also be required to give feedback to either or both of the Departments engaged with this matter on whether or not the company’s skills Transfer Plan delivered on its intended objectives – and if not, why not. 

Some of the inherent weaknesses in a skills transfer plan in terms of what the Department of Home Affairs looks for in these plans have been flagged above. 

Given the increasing importance of these skills transfer plans in addressing the need for South Africans to become (more) employable and to have their current skills upgraded, employers should approach the crafting of these plans with an eye to reasonably foreseeable future trends given that most transfer visas are issued for a four-year period.

As stated above, Regulation 18(9)(c) to the Immigration Act requires that the employer shall develop a plan “for the transfer of skills to a South African citizen or permanent resident”. The Regulation does not stipulate, contrary to what is often heard and as discussed above, that a person on an Intra-Company Transfer Visa must, over the course of the term of their visa, train a South African to be their replacement. The Regulation requires only that there be a “transfer of skills”. 

In other words, the foreign employee on a transfer visa is only required to transfer one or more of their compendium of skills to South Africans. 

There is no stipulation in the legislation as to which of their skills the expat should endeavour to transfer. Logic dictates that the expat should perhaps focus the skills transfer training on which skill(s) they are more comfortable with when it comes to training or what skills might best be needed by unemployed persons in order to secure employment.

Employers should also be mindful that one of the objects certainly of the Employment Services Act – which could also be read into the Immigration Act ‒ is the reduction of unemployment. As such, there is no reason why the skills transfer plan should not also provide for community outreach support which targets unemployed persons followed, hopefully, by the offer of an internship or the like at the company.

Another “variable” in these plans that needs to be addressed is what provision should be made if the expat/trainer has challenges such as being neurodivergent or other learning difficulties. Should a company not be allowed to get its new, head-hunted chief executive into the country on a transfer visa just because that individual has leaning difficulties and would be hard put to train others? Regulation 18(9)(c) does not require that it is the expat who gives the training.

At this point there is no reason why a company, in light of factors such as its operating circumstances and personnel changes, cannot also revise the initial skills transfer plan and to submit that to the compliance section of the Department of Home Affairs. Mindful that the employee’s transfer visa has been issued on the basis of, amongst other things, that original skills transfer plans, care should be taken in any update of the plan, to not water down the commitments set out in the original plan. Of course, if the changed circumstances at the company are, for example, in business rescue, and reduced commitments are necessary, this fact should be drawn to the attention of the Department.

It can also be safely predicted that, in the event there is a need for an expat who has been to South Africa and had obligations in terms of a skills transfer plan and needs to return to South Africa, as does happen, the visa application documentation will need to address the question – as part of a new skills transfer plan ‒ why this is necessary. This will be so especially where the host employer had committed to have the expat train up their successor over the term of the Intra-Company Transfer Work Visa. Consequently, it is to be expected that the host employer will have to present a new skills transfer plan which identifies what the shortcomings were in the first plan, if any, and addresses how the new plan will seek to address those challenges.

For that reason, it should also be expected that underdelivery on these plans will attract appropriate administrative fines in order to “encourage” due compliance by employers.

There have also been incidents of Home Affairs’ inspectors arriving at the workplace in order to check with the intended beneficiaries whether they are aware that they are named in the plan. Home Affairs tends to take the view that, if the employees have not been consulted, the Plan is an exercise in tokenism, which can lead to the work visa application being declined. This adds a further layer of complexity to drawing up these plans because there will need to be prior consultation even if only with the affected employees in drawing up those plans.

Conclusion

As will be seen from the above, there are many issues in respect of skills transfer plans, whether existing or looming, that need to be addressed by all the stakeholders in order to achieve the entirely legitimate objects of the Immigration Act and the Employment Services Act. 

Hopefully, organised business and other stakeholders in South Africa will have an opportunity to engage with the Department of Home Affairs, the Department of Employment and Labour and lawmakers about the realities of managing human resources in the South African workplace in an era of global competition and labour mobility in order to formulate viable and sustainable formulas that will address the primary “mischief”.

Chris Watters Attorneys

10 Penhurst Avenue
Essexwold
Bedfordview 2007
Johannesburg
South Africa

+27 11 454 3309

+27 11 454 1318

mail@chriswatters.co.za www.chriswatters.co.za
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Law and Practice

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Chris Watters Attorneys was established in 1989. The firm is located in Bedfordview, Johannesburg, South Africa. The firm has been involved in immigration (including citizenship and refugee) law for over 30 years. For the last 20 years, the firm has focused exclusively on immigration law. Over the last 15 years, the firm’s client base has become primarily corporate. The primary sources of work include client referrals and other law firms. To support its client base around the country, it has close working relationships with immigration law firms in Pretoria, Cape Town, Durban and Port Elizabeth. Since the advent of South Africa’s constitutional democracy in 1994 and the establishment of a Constitutional Court as the apex court, the firm has had five matters in that Court which established precedents and expanded the rights of foreign nationals in South Africa.

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Chris Watters Attorneys was established in 1989. The firm is located in Bedfordview, Johannesburg, South Africa. The firm has been involved in immigration (including citizenship and refugee) law for over 30 years. For the last 20 years, the firm has focused exclusively on immigration law. Over the last 15 years, the firm’s client base has become primarily corporate. The primary sources of work include client referrals and other law firms. To support its client base around the country, it has close working relationships with immigration law firms in Pretoria, Cape Town, Durban and Port Elizabeth. Since the advent of South Africa’s constitutional democracy in 1994 and the establishment of a Constitutional Court as the apex court, the firm has had five matters in that Court which established precedents and expanded the rights of foreign nationals in South Africa.

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