Business
Groundbreaking Draft Dismissal Code Set to Transform South Africa’s Workplace Culture

South Africa’s employment landscape is poised for transformation with the publication of the Draft Code of Good Practice on Dismissal. Designed to provide clearer guidelines and greater flexibility, this groundbreaking reform introduces a principle-based approach to dismissals that balances fair labour practices with business realities.
According to Jonathan Goldberg, Chairman of Global Business Solutions, this reform consolidates and updates provisions previously scattered across Schedule 8 and Section 189 of the Labour Relations Act. The draft code shifts from rigid procedural requirements to adaptable guidelines, providing businesses, especially small ones, with tools to handle dismissals more effectively while maintaining fairness.
Key Changes for Employers
The new code introduces several critical changes:
- Small Business Relief:
For the first time, the code explicitly acknowledges the unique challenges small businesses face, exempting them from overly burdensome procedural requirements. This adjustment recognises their limited HR resources and operational constraints. - Streamlined Procedures:
Rigid timeframes, such as the 48-hour notice requirement, are replaced with “reasonable” standards. This provides employers with greater procedural flexibility while ensuring fairness. - Enhanced Legal Protection:
Employers gain a structured framework for documentation and decision-making, improving their ability to defend against unfair dismissal claims through clearer record-keeping and consistency guidelines. - Progressive Discipline Framework:
A focus on corrective action over punitive measures ensures dismissals are a last resort. Employers now have detailed guidelines for implementing graduated responses to disciplinary issues. - Operational Requirements:
Retrenchment procedures are integrated with clearer consultation guidelines and selection criteria, reducing uncertainty during restructuring processes. - Probation and Performance Management:
Clearer frameworks for managing probation periods and evaluating performance will benefit businesses dealing with complex performance issues, particularly in specialised fields.
Implications for Businesses
The new draft code brings numerous advantages for employers, including:
- Reduced risk of procedural challenges in dismissal cases
- More efficient dispute resolution processes
- Enhanced legal protection through structured documentation
- A clearer framework for consistent decision-making
- Greater procedural flexibility tailored to business needs
These changes strike a careful balance between protecting employee rights and acknowledging operational realities, making it easier for businesses to manage employment relationships effectively.
Why This Code Matters Now
The draft code’s introduction comes at a time when South Africa’s economy is navigating challenges such as unemployment, restructuring, and industrial disputes. By adopting a more practical and principle-based approach, this reform aims to reduce legal uncertainties, streamline dismissal processes, and promote workplace fairness.
How to Have Your Say
The Draft Code of Good Practice on Dismissal is currently open for public comment, giving employers, employees, and stakeholders a chance to shape its final version.
Submissions can be emailed to:
Deadline for submissions: 22 March 2025
A New Era for Labour Practices
The implementation of this draft code is expected to significantly improve workplace culture in South Africa. By providing businesses with practical tools for managing dismissals while upholding fairness principles, it marks a major step forward in labour reform.
As the public comment period progresses, businesses and stakeholders are encouraged to engage with the draft code to ensure it meets the needs of South Africa’s evolving labour market.
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