2025 Code of Good Practice on Dismissal: Updated Guidelines

Posted 01 October 2025 Written by Acts Online
Category Labour

Brought to you by SA Accounting Academy: The draft 2025 Code of Good Practice on Dismissal has been issued to provide updated guidance on the application of the Labour Relations Act, No. 66 of 1995 (LRA) regarding the termination of employment.

In terms of the LRA, the Code of Good Practice: Dismissal serves as a primary regulatory benchmark for employers, employees, trade unions, and adjudicators. It details the substantive and procedural requirements for dismissals arising from misconduct, incapacity, and operational requirements. A significant feature of the 2025 Code is the formal recognition of the operational limitations faced by small businesses, allowing for a less rigid procedural approach to ensure compliance remains viable for smaller entities.

The Code provides specific directives on the following areas of employment law:

  • Conduct: Procedures and substantive fairness requirements for dismissals related to employee misconduct.
  • Capacity: Guidelines for managing dismissals due to ill health, injury, or poor work performance.
  • Operational Requirements: The application of section 189 of the LRA regarding retrenchments.
  • Small Business Provisions: Modified procedural expectations for employers with limited administrative infrastructure.

Click here to download the CDH Guide on the 2025 Code of Good Practice on Dismissal.

What this means for you, your business, or your clients

  • For yourself: You must ensure that any disciplinary or performance management actions you initiate as a manager are aligned with the updated procedural fairness standards to avoid personal liability or internal grievances.
  • For your business: The firm must review and update its existing disciplinary codes and HR manuals to reflect the 2025 Code’s provisions, particularly if the business qualifies for the less rigid procedural requirements afforded to small enterprises.
  • For your clients: You should advise clients to audit their current dismissal procedures against the new Code to mitigate the risk of successful unfair dismissal claims and subsequent compensation orders at the CCMA or Labour Court.

Originally published at https://accountingacademy.co.za/news/read/cdh-guideline-the-2025-code-of-good-practice-on-dismissal

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