Merlisha Haripal | Executive | Employment & Litigation | CHM Legal | mail me |
People are the beating heart of every business. They bring perspective, ingenuity, skills and experience that help organisations excel and deliver results. However, employment relationships do not always work out.
A person may not suit their role and responsibilities. They may also fail to align with the company culture or behave poorly in the workplace. In such cases, dismissal becomes an option. Dismissals are rarely pleasant. In addition, they often become complicated and emotionally charged. Some cases even collapse into finger-pointing and accusations of unfairness.
How the amended dismissal code modernises labour management
The Code of Good Practice on Dismissal, commonly known as the Dismissal Code, guides employers and employees through this process. It clarifies expectations for each party and promotes fairness.
In late 2025, the Minister of Employment and Labour gazetted the amended dismissal code with several important updates. Many of the updates to the code focus on modernising it. This is especially true around practicalities that emerged recently, particularly after COVID-19.
In some situations, people made processes overly complicated when they did not need to be. The amendments attempt to simplify matters by introducing guidelines for certain situations. For example, incompatibility or probation. People often do not know how to handle these matters, so the code aims to simplify and modernise them.
The code’s major updates
South Africa’s labour laws centre on fairness. Therefore, the amended dismissal code provides greater clarity and a broader scope to this principle. One of the most significant changes focuses on employees hired during probationary periods.
Employers cannot simply dismiss employees after probation ends. Employees still deserve due process. This includes a fair hearing, access to grievances and time to respond. Employers must also demonstrate that they supported probationary employees by helping them develop skills and address performance shortcomings.
At the same time, employers now have greater flexibility when dismissing probationary employees. Previously, dismissals focused mainly on performance issues. However, employers can now also consider gross misconduct and compatibility.
If the employee is not a good fit, it can now become grounds for dismissal. Somebody may perform superbly at their job, but they may not fit the culture. Personality issues may also arise. Companies should not face restrictions when dealing with these situations. One incompatible person can change the culture of an entire team or organisation.
The amendments also recognise the realities facing smaller businesses. Many small companies struggle to manage dismissals formally because they lack dedicated HR departments.
There is now significant relaxation for smaller businesses that do not necessarily employ an entire HR department, or even a single HR professional. Small businesses now have greater flexibility to handle matters informally while still complying with the code and the Labour Relations Act. Additionally, the amended dismissal code strengthens employees’ rights in several important areas.
These include proper notice, disclosure of evidence and accurate record-keeping during proceedings. Employers must also demonstrate meaningful efforts to correct and support employees through warnings, counselling and performance management.
Demonstrating fairness
Dismissal should always remain a last resort. Therefore, the amended dismissal code provides clearer guidance for all parties involved. It also reinforces consistency and reduces the risk of similar cases receiving different treatment. Consequently, the quality of records and witnesses will carry significant weight in settlements or verdicts.
Companies should develop disciplinary codes and procedures with assistance from labour professionals wherever possible. Digital software can help businesses maintain accurate records. Meanwhile, self-service portals and talent development tools can manage access to policies and training materials. Modern HR platforms already support these functions effectively.
A cloud-native HR platform supports employee management across multiple areas. These include incident management, performance management, training and skills development. Multiple stakeholders can access the platform’s services, and the platform creates a reliable system of record. This strengthens evidence collection. More importantly, it becomes far easier to track performance, plan development opportunities and demonstrate proactive engagement from both employers and employees.
– Sandra Crous, Managing Director at Deel Local Payroll, powered by PaySpace
In conclusion
The amended Code of Good Practice on Dismissal reinforces its emphasis on fairness. While the amended dismissal code simplifies and clarifies several requirements, employers will now carry a greater burden when providing evidence during dismissals. Consequently, disciplinary codes and modern HR systems represent smart long-term investments.
Remember, the code remains a guideline, but it is grounded in the provisions of our Labour Relations Act and established practice. The Labour Relations Act addresses probation, dismissal and related issues. However, the code explains how these principles work in practice. If employers can demonstrate compliance with what the code requires, outcomes become far more likely to favour them.
