Labour Law Overhaul: The 2025 Code of Good Practice on Dismissal
On 4 September 2025, the Minister of Employment and Labour published the new Code of Good Practice: Dismissal. This landmark update consolidates multiple legal frameworks into a single overarching code to streamline workplace discipline and dispute resolution.
Critical Legislative Repeals
The publication of this 2025 Code officially repeals and replaces two foundational documents that have guided South African labour law for over two decades:
- Schedule 8: Code of Good Practice on Dismissal.
- Code of Good Practice Based on Operational Requirements (originally published in July 1999).
Key Highlights of the 2025 Code
The new Code emphasizes mutual respect, employment justice, and the expeditious resolution of disputes while remaining “intentionally general” to accommodate unique workplace circumstances.
- Small Businesses: Recognizes limited resources; small employers are not expected to conduct time-consuming investigations or formal pre-dismissal processes that are impractical for their operations.
- Misconduct: Dismissal is appropriate if serious misconduct renders the continuation of the employment relationship intolerable. It may be a single grave incident or repeated misconduct.
- Incapacity: Scope expanded to include ill health, injury, incompatibility (inability to work in harmony with company culture), and imprisonment.
- Probation: Purpose broadened to evaluate an employee’s performance and suitability for employment. Reasons for dismissal during probation may be less compelling than for permanent staff.
- Operational Requirements: Commonly called retrenchment. Dismissal must be a measure of last resort. Employers must issue a formal notice using the prescribed Annexure A template.
Procedural Fairness Requirements
To ensure a fair dismissal, the Code outlines several procedural guidelines that must be met, even in informal settings:
- Notification: The employee should be notified of allegations, preferably in writing.
- Opportunity to Respond: Employees must be given a reasonable period to prepare and make representations regarding allegations and potential sanctions.
- Representation: Employees have the right to assistance from a fellow employee or trade union representative.
- Language Accessibility: Where reasonably possible, the process should allow for communication in a language the employee is comfortable with.
