Newsflash: Major Overhaul – New Code of Good Practice on Dismissal Released – September 2025
After more than two decades, South Africa has officially replaced the long-standing Schedule 8 of the Labour Relations Act with a new Code of Good Practice: Dismissal, effective 4 September 2025. This marks the most significant reform in dismissal procedures since the LRA’s inception, offering a unified, modernised, and more practical framework for employers and employees alike.
Here’s what you need to know:
One Code to Rule Them All: Unified Dismissal Framework
Previously, dismissals for misconduct, incapacity, and operational requirements were governed by separate codes. The new Code consolidates everything into a single, structured document, making it easier to navigate and apply.
Key Structural Changes:
- Part A–G format with logical groupings.
- Annexure A: Standardised Section 189(3) retrenchment notice template.
- Clear definitions and simplified language for broader accessibility.
What’s New? 7 Groundbreaking Changes
- Operational Requirements Now Included
For the first time, retrenchments are fully integrated:
- Sections 22–24 outline consultation, selection, severance, and re-employment obligations.
- Employers now have a single reference point for all dismissal types.
- Small Business Protections
A game-changer for SMEs:
- Recognises that small employers lack HR infrastructure.
- Allows for simplified procedures and greater flexibility.
- Arbitrators must consider the realities of small business operations.
- Expanded Sanction Assessment Criteria
Section 8 now includes:
- The importance of the rule breached.
- The actual or potential harm caused. This enables more proportional and context-sensitive disciplinary outcomes.
- New Dismissal Decision Factors
Section 9 introduces:
- The impact of misconduct on the business.
- Whether the employee acknowledged wrongdoing and showed willingness to comply. This supports restorative approaches where appropriate.
- Modernised Misconduct Handling
- Informal procedures are now formally recognised.
- Employers may depart from rigid procedures if justified (Section 6(7)).
- Language rights are strengthened—employees should be allowed to communicate in a language they’re comfortable with (Section 11(4)(d)).
- Probation and Incapacity Reimagined
- Probation now includes both performance and suitability.
- Incapacity now formally includes:
- Imprisonment
- Incompatibility
- Substance abuse (with intervention guidelines)
- Senior Employee Standards
- Section 20(2) introduces higher performance expectations for senior professionals:
- May not require warnings before dismissal.
- Still requires an opportunity to respond.
Consistency and Industrial Action Clarified
- Section 10 clarifies that inconsistency doesn’t automatically make a dismissal unfair—serious misconduct can justify dismissal even if others weren’t disciplined.
- Section 12(2) adds four new factors for assessing misconduct during strikes, including:
- Legitimacy of demands
- Harm caused
- Duration and timing
What Employers Must Do Now
- Update disciplinary codes and HR policies.
- Train managers and HR teams on the new provisions.
- Adopt the new retrenchment templates (Annexure A).
- Pay special attention to small business provisions and probationary dismissals.
In conclusion, the new Code is a bold step forward. It balances employee protections with business realities, especially for small employers. It also reflects 23 years of legal evolution, case law, and practical challenges in the workplace.
This is not just a legal update—it’s a strategic shift in how dismissals are handled in South Africa.
View the official government communication below:
https://www.labournet.com/wp-content/uploads/2025/09/Code-of-Good-Practice-Dismissal-2025.pdf
