The Department of Employment and Labour recently published the new Code of Good Practice: Dismissal, effective 4 September 2025.
This Code replaces the previous Schedule 8 guidelines under the Labour Relations Act and modernises how disciplinary and dismissal procedures should be applied in South African workplaces.
For employers, understanding these updates is crucial to avoid unfair dismissal disputes and to ensure that internal disciplinary processes align with the law.
Key highlights of the new code
One of the most notable features of the new Code is that it recognises flexibility. Employers especially small businesses are no longer expected to follow overly formal disciplinary procedures in every case. As long as the process remains fair and the employee has a chance to state their case, less formal methods may be acceptable for minor misconduct.
The Code also expands the purpose of probation. It now allows employers to consider not only performance but also issues like misconduct, cultural fit, and attitude during the probation period provided that fairness and clear communication are maintained.
Another important emphasis is consistency. The Code highlights that similar cases of misconduct should be treated similarly. Employers must therefore keep proper disciplinary records and ensure that sanctions are applied evenly to all employees.
Lastly, the Code reaffirms the principle that dismissal must always be a last resort. Employers should explore corrective measures such as counselling or warnings before opting for termination, unless the misconduct is so serious that continued employment is intolerable.
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Practical example: Dismissal under the new code
I recently handled a case that demonstrates how these principles work in practice.
The employee had been with the company for four years and had received multiple warnings for late coming and absenteeism. Despite this, he once again arrived late and failed to report for duty, claiming transport issues but providing no evidence. Management presented witness statements and photographs confirming his late arrival.
Under the new Code, the employer was entitled to hold a fair but streamlined disciplinary process, as the misconduct was repetitive and not complex. The employee was given the opportunity to respond but could not justify his conduct.
Given the employee’s disciplinary record and the fact that progressive discipline had been exhausted, dismissal was found to be both procedurally and substantively fair. This outcome aligns with the new Code’s focus on reasoned flexibility fairness without unnecessary formalism.
Lessons for employers
This case reinforces several important lessons under the 2025 Code:
- Flexibility does not remove fairness – even when simplifying processes, employers must allow the employee to be heard.
- Progressive discipline still applies – keep clear records of warnings and counselling sessions.
- Consistency is essential – similar misconduct must attract similar sanctions.
- Documentation is your best defence – every step in the disciplinary process should be recorded.
Conclusion
The new Code of Good Practice: Dismissal does not drastically change South African labour law but it modernises it. It gives employers more practical flexibility while reinforcing the principles of fairness, consistency, and transparency.
Employers should review their disciplinary policies and train managers to apply the new Code correctly. Fair, well-documented, and consistent disciplinary processes not only protect the business but also build trust and accountability within the workplace.
– R. Morukhu
