Why are foreign sole proprietors using work permits and not Business VISA's

Ashlyn Nundlall sent a message to Leon Amos Schreiber.

To
Leon Amos Schreiber
From
Ashlyn Nundlall
Subject
Why are foreign sole proprietors using work permits and not Business VISA's
Date
Sept. 6, 2025, 5:33 p.m.
Gooday Dr. Leon Shreiber

The issue I am asking you about effects society at large. There are numerous listed companies (The Shoprite Group, Pick and Pay, Spar, Woolworths, etc.) that engage the services of foreign nationals as independent contractors. Legally, though, if they are operating as independent contractors, it implies they are self-employed and not employees. Given that they are self employed it then implies that they are deemed to be foreign sole proprietorships working in South Africa. This means that legally they require BUSINESS VISA's and not Work permits. These listed companies have been challenged many times in CCMA and Labour court over the status of their contractors. With many ex-contractors claiming protection under Section 200A of the Labour Relations Act. The companies have indeed had the validity of their contracts upheld. So my question why can their contractors use "Work Permits for their day to day operations when they are sole proprietorships instead of having to meet the requirements for obtaining a business VISA's which are far more onerous. It is unfair that they can switch their status out of convenience between using work permits day to day which are the appropriate documentation for foreign employees not foreign contractors (which they are) operating in South Africa. Them being able to switch their status between being an employee for day to day running and contactors in legal cases as a matter of convenience affects the economy and reduces the value of local labour. We want you to apply the law concerning business VISA's on these contractors. They need to meet the requirements as they stand.

Kind regards
Concerned Citizen

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