Breaking News: The New Code of Good Practice on Dismissal is Here
After more than 20 years, South Africa has said goodbye to Schedule 8 of the Labour Relations Act. As of 4 September 2025, the brand-new Code of Good Practice: Dismissal is in force. This is the biggest shake-up in dismissal procedures since the LRA began, and it brings with it a more unified, modern, and practical framework for both employers and employees.
So, what’s changed and what should businesses be paying attention to?
One Code for All Dismissals
Previously, dismissals for misconduct, incapacity, and operational requirements were spread across different codes. Now, everything is consolidated into one clear document, making it far easier to apply in practice.
Key updates to the structure:
- A new Part A–G format with logical groupings.
- Annexure A: a standard Section 189(3) retrenchment notice template.
- Clearer definitions and simpler language—making it more accessible to everyone.
7 Big Changes You Need to Know
1. Operational Requirements Now Integrated
Retrenchments are now fully covered, with obligations on consultation, selection, severance, and re-employment spelt out in Sections 22–24.
2. Small Business Protections
Finally, recognition for SMEs! The Code allows for simplified procedures and flexibility, with arbitrators required to consider the realities of running a small business.
3. Expanded Sanction Criteria
Section 8 now looks at the importance of the rule breached and the harm caused, helping employers apply fairer and more proportionate disciplinary action.
4. New Factors in Dismissal Decisions
Section 9 considers the impact on the business and whether an employee acknowledges wrongdoing and shows a willingness to change. This opens the door to more restorative approaches.
5. Modernised Misconduct Handling
- Informal procedures are now officially recognised.
- Employers can deviate from rigid procedures where justified.
- Stronger language rights—employees may use a language they’re comfortable with.
6. Probation & Incapacity Reimagined
- Probation now covers both performance and suitability.
- Incapacity is widened to include imprisonment, incompatibility, and substance abuse, with guidance for intervention.
7. Senior Employee Standards
Senior professionals face higher performance expectations and may not always require warnings before dismissal, though they must still be allowed to respond.
Clarity on Consistency & Industrial Action
- Inconsistency no longer automatically makes a dismissal unfair—serious misconduct can still justify dismissal.
- New factors are introduced to guide how misconduct during strikes is assessed, including legitimacy of demands, harm caused, and timing.
What Should Employers Do Now?
- Update your disciplinary codes and HR policies.
- Train managers and HR teams on the new Code.
- Adopt the new retrenchment templates.
- Pay close attention to small business provisions and probationary dismissals.
This new Code isn’t just a legal tweak—it’s a strategic shift in how dismissals are managed in South Africa. It balances the rights of employees with the realities of running a business, especially for SMEs, and brings the law in line with 23 years of workplace changes and case law.
At HR Consult, we can help your business:
- Review and update your disciplinary and HR policies.
- Train managers on the new dismissal requirements.
- Guide SMEs on simplified procedures while staying compliant.
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