South Africa's labour department said it had filed court papers against telecom equipment group Huawei Technologies' local business over alleged employment rule breaches.
China's Huawei employed approximately 90% foreign nationals against 40% as permitted by regulations, the South African department said in a statement on Friday.
The spokesperson for Huawei's South Africa business said the company would respond soon.
The labour department said that Huawei was granted a permit in accordance with the provisions of the Immigration Regulations that required the company to employ 60% South Africans and 40% foreign nationals, but it had been employing far above that number and had plans to further increase it.
"The Department has determined that its cause of action is clear and that all transgressions have been committed," it said.
The move is the first time the South African government has made a legal challenge against the Chinese tech giant.
However, the labour department had previously cracked down on a smaller Chinese firm over charges of poor working conditions and human trafficking at its factory in Johannesburg. That case was still in court.