People are the beating heart of every business. They bring the perspective, ingenuity, skills, and experience that help organisations excel and deliver.
Yet it doesn’t always work out. A person might not be suitable for their role and duties, they might not align with the company culture, or they could conduct themselves poorly. In such cases, dismissal becomes an option.
Dismissals are rarely pleasant, and they can become complicated, sometimes collapsing into finger-pointing and accusations of unfairness. The Code of Good Practice on Dismissal (Dismissal Code) guides employers and employees on this process, clarifying expectations for each party and promoting fairness.
In late 2025, the Minister of Employment and Labour gazetted an amended version of the Dismissal Code with important new updates.
“Much of the updates to the code is towards modernising it, especially around practicalities that have come up recently, particularly post-Covid,” says Merlisha Haripal, executive for employment and litigation at CHM Legal.
“People were making it overly complicated in some instances where it shouldn’t be. The amendments try to ease that by putting in place guidelines for certain instances. For example, incompatibility or probation.
“People don’t know how to deal with that kind of thing, so the code tries to simplify and modernise it.”
Major updates
South Africa’s labour laws are based on fairness, and the amended version brings more clarity and scope to that principle. One of the most notable shifts focuses on people employed during a probationary period.
Employees cannot simply be let go after a probationary period. They deserve due process – a fair hearing, being presented with grievances, and time to respond. The employer must demonstrate that they supported a probationary employee to develop their skills and address shortfalls in their performance.
Employers have more leeway when dismissing probationary employees. Expanding from performance issues, they can now include gross misconduct and compatibility.
“If the employee is not a good fit, it can now be grounds for dismissal,” says Haripal. “Somebody can be superb at their job, but they’re just not a good fit in the culture or there are personality issues, whatever the case is.
“Companies shouldn’t be prohibited from dealing with that kind of thing, because it can change the culture of an entire team or organisation if one person is not compatible.”
The amendments also consider smaller companies that struggle to manage dismissals formally.
“There is a heavy relaxation for smaller businesses that don’t necessarily have an entire HR department, or even an HR person. Small businesses now have the leeway to handle things informally along the code and the Labour Relations Act’s requirements.”
The amended code also strengthens employees’ rights to proper notice, disclosure of evidence, keeping of proper records of proceedings, and demonstrable efforts to correct and support employees through warnings, counselling, and performance management.
Demonstrating fairness
Dismissal should always be a last resort. The amended code provides clearer guidance for all parties involved and reinforces consistency over cases being treated differently. Thus, the quality of records and witnesses will have the biggest impact on any settlement or verdict.
Companies should develop disciplinary codes and procedures, ideally with the help of labour professionals. Digital software can keep accurate records, while self-service portals and talent development tools manage access to policies and training.
Modern HR platforms are well-equipped for such tasks, says Sandra Crous, MD of Deel Local Payroll, powered by PaySpace.
“A cloud-native HR platform supports employee management, from incident and performance management to training and skills development. Multiple stakeholders can use the platform services, and the platform creates a system of record.
“That helps with evidence. But above all, it makes it much easier to track performance, plan development opportunities, and show proactivity from employers and employees.”
The amended Code of Good Practice on Dismissal reinforces its emphasis on demonstrating fairness. While it clarifies and simplifies several requirements, the burden of dismissal evidence will fall more on the employer, which is why disciplinary codes and modern HR systems are smart investments.
“Remember, the code is a guideline, but it’s based on the provisions of our Labour Relations Act, and it’s based on practice,” says Haripal. “The Labour Relations Act talks about probation, dismissal and all of those things.
“But the code is a guideline on how practically it would work. If you can demonstrate compliance in terms of what the code says, then matters are much more likely to go your way.”