South Africa's informal economy is a significant sector in terms of employment and economic activity, despite its often precarious nature. An ethnographic approach was employed to understand the lived experiences of informal workers and their interactions with labour laws. Informal workers in Cape Town reported facing significant challenges in accessing formal employment opportunities, with approximately 40% experiencing wage theft and irregular hours. The findings highlight the tension between formal legal frameworks and the realities of working conditions within the informal economy. Policy recommendations include strengthening enforcement mechanisms for labour laws and providing support services to informal workers.