A sweeping multi-agency compliance operation at a busy Cape Town CBD construction site has exposed the scale of regulatory non-compliance gripping the building industry, and signaled the start of tougher crackdown on labour, immigration and regulatory violations.

On 20 May, enforcement officials descended on a Lower Long Street building site in a coordinated operation involving the Building Industry Bargaining Council (BIBC), the Department of Employment and Labour, (DoEL) the Department of Home Affairs (DHA) Immigration Services, the South African Police Service, metro police and the traffic department.

Of approximately 200 employees found on site, 79 were confirmed as undocumented foreign nationals, triggering arrests, a temporary work suspension, and signalling a decisive shift in how authorities are approaching compliance within the construction sector.

The inspection, coordinated by Luthando Nkuzo, principal inspector of DoEL, formed part of a broader multi-disciplinary inspection and enforcement operation, focusing on labour laws, health and safety and wider regulatory compliance within the construction sector.

Deputy Minister addresses workers

Deputy Minister of DoEL, Jomo Sibiya, explained to the workers who had been instructed to gather at designated evacuation points, that the inspection formed part of broader labour compliance enforcement efforts.

For the BIBC, the operation reflects a significant shift toward coordinated enforcement across the Western Cape building industry.

“These inspections are about far more than undocumented workers,” says Danie Hattingh, spokesperson for business at the BIBC. “They are about strengthening accountability in an industry increasingly challenged by subcontracting abuses and regulatory non-compliance.”

Hattingh says sites involving multiple subcontractors and labour brokers pose significant compliance and safety risks where oversight is weak.

“Large projects often involve multiple layers of contractors, creating opportunities to bypass labour obligations and registration requirements,” he explains. “Integrated operations enable regulators and enforcement agencies to respond far more effectively.”

Employers paying the price for industry lawbreaking

As the recognised bargaining council for the Greater Cape Peninsula building sector, the BIBC exercised its mandate by verifying contractor and subcontractor registration and compliance with collective agreements governing wages, working conditions, benefit contributions and employer registration obligations. Failure to comply often results in labour exploitation and unfair competition within the sector.

“Non-compliance does not only affect workers,” says Hattingh. “It also undermines compliant employers who are forced to compete against companies cutting costs by operating outside the law.”

Authorities have increasingly identified the construction sector, of which the building industry is a significant part, as high risk for labour exploitation, undocumented employment and regulatory avoidance, particularly on large developments with extensive subcontracted and foreign-national workforces.

Compliance with labour legislation, bargaining council agreements, immigration requirements and occupational health and safety standards is no longer optional.

The Lower Long Street inspection follows two similar multi-agency operations conducted in Table View in November 2025, coordinated by Vincent Domingo, principal inspector at DoEL, targeting undocumented labour and employment law violations.

In the first instance, 28 employees were verified by the DHA as being undocumented foreign nationals. On the other, a lifestyle estate complex, the volume of foreign nationals on site was so excessive that the operation could not be completed on the same day.

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“The message to contractors and developers is becoming increasingly clear,” Hattingh says. “Compliance with labour legislation, bargaining council agreements, immigration requirements and occupational health and safety standards is no longer optional.”

Operations set to increase throughout 2026

According to the BIBC, joint enforcement operations are expected to increase throughout 2026 as cooperation between regulators deepens, strengthening accountability and protecting lawful employment practices.

Industry stakeholders increasingly recognise that non-compliance fuels wage suppression, worker exploitation, unfair competition and reduced industry sustainability. Against this backdrop, Hattingh says employment documentation, worker registration and compliance verification have become critical risk areas for contractors and developers.

“We are seeing a much stronger enforcement environment emerging,” he says. “Contractors that fail to comply with labour and regulatory obligations should expect increasing levels of monitoring and enforcement action.”

Hattingh believes the increased enforcement focus will ultimately strengthen the industry. “These operations are about protecting the integrity and sustainability of the building sector. A stronger culture of compliance benefits workers, responsible employers and the entire industry.”