South Africa employment and Labour Minister, Thulasi Nxesi has revealed that the government is working on harsh penalties for companies that employ illegal foreigners.

Nxesi said illegal foreigners are distorting the labor market and are a threat to national security.

Nxesi said companies continue to employ illegal foreigners because the penalties for it are very small.

Nxesi was speaking at the 27th annual summit of the National Economic Development and Labor Council (NEDLAC), which was held at Gallagher Convention Centre in Midrand.

Nxesi gazzetted the Draft National Labour Migration Policy and Employment Services Amendment Blll for comment in February.

The bill seeks to place quotas on the number of foreign employees in South Africa to less than 30%.