The Department of Employment and Labour has gazetted a new Code of Good Practice on Dismissals (effective 4 September 2025). This single Code replaces both Schedule 8 of the Labour Relations Act (Dismissal) and the Code of Good Practice on Dismissal Based on Operational Requirements.
For the first time, all rules on dismissals, whether for misconduct, poor performance, incapacity, probation, incompatibility, retrenchments or strikes, are consolidated in one binding framework.
Key Changes at a Glance
- One Code for All Dismissals
Employers now have one Code that deals with every type of dismissal. - Flexibility for Small Businesses
The new Code recognises the practical constraints faced by small employers, allowing more flexibility in how procedures are applied, provided the principles of fairness are respected. - Misconduct
Progressive discipline remains the norm, but dismissal for serious misconduct can be fair even where discipline has not always been applied consistently, as long as the employer can show the sanction was justified. - Probation and Performance
It is now easier to dismiss probationary employees if their performance falls short, provided they have been given feedback and support. For permanent staff, performance standards must be reasonable and suited to the role, with higher expectations for managers and specialists. - Incapacity
Employers must still consider alternatives before dismissal. The Code now also recognises incompatibility with workplace culture or colleagues as a form of incapacity. - Industrial Action
The rules on unprotected strikes have been expanded, requiring employers to consider the legitimacy of demands, employee conduct, and the strike’s impact before dismissal. - Operational Requirements (Retrenchments)
Retrenchment rules are clearer, with structured guidance on Section 189(3) notices and disclosure requirements, while retaining the need for fair selection criteria and severance pay.
What This Means for Employers
The new Code brings some welcome flexibilities, especially for smaller businesses and in managing probation. However, it also raises the bar. Employers must prove both substantive and procedural fairness in every dismissal. Alternatives to dismissal should always be explored and documented. Consistency, transparency and respect for employees’ rights remain the cornerstones of fair process.
Editor’s Note
You’ll notice a clear thread running through both the new Code of Good Practice on Dismissals and the proposed amendments to the LRA and BCEA. Together, they signal a shift in labour law: giving small and growing businesses more flexibility in how they manage employment, while still holding them to the principle of fairness.
For employers, this means two things. First, you have more room to make practical decisions, especially during probation, retrenchments, or when using casual or gig workers. Second, the responsibility to prove that your processes are fair and transparent is greater than ever.
At HRTorQue, we see these changes as an opportunity for our clients. They reduce unnecessary red tape, but they also make it essential to get the fundamentals right.
Whether you need quick advice over WhatsApp, structured support through a retainer, or a fully outsourced HR partner, we offer cost-effective solutions to meet you where you are.