Section 5(1) Where an employer is deemed to have displaced an employee as contemplated in subsection (2), that employer—
(a) must pay a penalty to the South African Revenue Service in an amount of R30 000 in respect of the employee that is displaced; and
(b) may be disqualified from receiving the employment tax incentive by the Minister of Finance by notice in the Gazette after taking into account—
(i) the number of employees that have been displaced by the employer; and
(ii) the effect that the disqualification may directly or indirectly have on the employees of the employer.

Both (a) and (b) can be imposed.