New Code of Good Practice on Dismissal Effective September 2025

Posted 01 October 2025 Written by Acts Online
Category Labour

Brought to you by SA Accounting Academy: The Department of Employment and Labour has published a new consolidated Code of Good Practice on Dismissal, which repeals and replaces existing guidelines to streamline workplace disciplinary and termination procedures.

In terms of the Labour Relations Act, No. 66 of 1995 (LRA), the Minister of Employment and Labour has issued the new Code of Good Practice: Dismissal, as published in Government Gazette No. 53294, General Notice 3470. Effective from 4 September 2025, this Code provides a unified regulatory framework for dismissals related to misconduct, incapacity, and operational requirements.

The publication of this Code formally repeals the previous Schedule 8 Code of Good Practice: Dismissal and the Code of Good Practice Based on Operational Requirements. By consolidating these formerly separate instruments, the Department aims to provide clearer guidance on the legal obligations of both employers and employees during the termination of the employment relationship.

Key Regulatory Changes

  • Consolidated Framework: The Code now integrates procedures for misconduct, incapacity, and retrenchments (operational requirements) into a single document.
  • Probationary Standards: Evaluation criteria for employees on probation have been expanded to explicitly include ‘suitability for employment’ alongside performance metrics.
  • Small Business Flexibility: The Code introduces enhanced flexibility for small businesses regarding the procedural requirements for dismissal, acknowledging the resource constraints of smaller firms.
  • Substantive Guidelines: More detailed guidance is provided for dismissals involving incapacity and misconduct to ensure both substantive and procedural fairness.

Employers are advised that while the Code is effective from 4 September 2025, the principles of fairness established in the LRA remain the primary standard. The Code serves as the authoritative guide for the CCMA and Labour Courts when determining whether a dismissal was fair.

Click here to download the 16-page Gazetted notice and new Code of Good Practice.

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

  • For yourself: You must familiarise yourself with the expanded ‘suitability’ criteria for probation to ensure that any personal performance or conduct assessments you conduct are legally defensible.
  • For your business: Your firm must audit and update its internal disciplinary codes and HR manuals to reflect the consolidated framework and the specific new guidelines for incapacity dismissals before the September 2025 deadline.
  • For your clients: Advise clients, particularly small business owners, on how to leverage the new procedural flexibility provisions to reduce the risk of procedural unfairness claims at the CCMA.

Originally published at https://accountingacademy.co.za/news/read/dept-of-employment-labour-new-2025-code-of-good-practice-dismissal

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