How changes to the Code of Good Practice on Dismissal modernise labour management.
People are at the centre of every business. They bring perspective, ideas, skills, and experience that help companies excel and succeed. However, it doesn’t always work out that way. An employee may struggle in their role, clash with the company culture, or engage in misconduct. When that happens, dismissal can become a reality.
Dismissals are hardly ever easy. They can become complex, emotional and if not handled properly they can result in finger-pointing and claims of unfairness. This why the Code of Good Practice on Dismissal (Dismissal Code) offers guidance to both employers and employees on this process, setting clear expectations for each party to promote fairness.
In late 2025, the Minister of Employment and Labour gazetted an amended version of the Dismissal Code introducing several important updates aimed at modernising workplace practice.
Merlisha Haripal, Executive for Employment & Litigation at CHM Legal, tells us that many of the changes reflect how the workplace has evolved, especially in the post-COVID era.
“Some processes were becoming unnecessarily complicated,” she explains. “The amendments aim to simplify and modernise how certain situations are handled, such as incompatibility and probation. These are areas where employers often struggle, so the updated code provides clearer guidance.”
What has changed?
South Africa’s labour framework is built on fairness, and the amended code reinforces that principle while offering more practical clarity.
There is now greater clarity around probation. Employees cannot simply be let go after a probationary period. They are deserving of due process and a fair hearing, being presented with grievances, and time to respond. It is important that employers can demonstrate that they supported a probationary employee to develop their skills and address shortfalls in their performance.
However, employers now have clearer grounds for dismissal during probation. In addition to performance issues, dismissal can also relate to gross misconduct or incompatibility.
Incompatibility is particularly important. For example, an employee may be excellent at their job but not fit well within the team or organisational culture. If someone’s presence disrupts the broader work environment, the employer should be able to address that.
The key remains fairness and proper process.
More flexibility for small businesses
The amendments also acknowledge that not every employer has a full HR department.
Smaller businesses often struggle with highly formal disciplinary processes. The revised code allows for a more flexible and informal approach, so long as it still aligns with the Labour Relations Act and principles of fairness.
This change recognises practical realities while still protecting employee rights.
Stronger emphasis on employee rights
The updated code also reinforces employees’ rights to proper notice, access to evidence, clear record-keeping of proceedings and meaningful attempts at correction through counselling, warnings, and performance management.
Dismissal should always be the last resort. The amended code makes it clear that employers must demonstrate genuine efforts to address issues before terminating employment.
Demonstrating fairness
The quality of records and witnesses will have the biggest impact on any settlement or verdict in CCMA or court. For employers, this raises the importance of having structured disciplinary procedures in place.
Sandra Crous, Managing Director at Deel Local Payroll, powered by PaySpace, highlights how modern HR systems can support compliance.
“A cloud-native HR platform supports everything from performance management to training and incident tracking. It creates a clear system of record, which is crucial if fairness is ever challenged,” she explains. “More importantly, it helps employers be proactive; tracking development, identifying issues early, and supporting employees before problems escalate.”
Digital tools, self-service portals, and structured performance management systems can make compliance easier while improving transparency.
The big picture
The amended Code of Good Practice on Dismissal doesn’t change the foundation of South African labour law, if anything it refines how it’s applied in practice.
The code is essentially a guideline grounded in the Labour Relations Act. If you can demonstrate compliance with the code in practice, you are far more likely to succeed if a matter is challenged.
In short, the message is clear: dismissal must be fair, process matters, documentation is critical, support and correction should come before termination.
For employers, that means tightening procedures and investing in proper systems. For employees, it reinforces the right to transparency and due process.
The amended code ultimately aims to create a more balanced, practical, and modern approach to managing workplace relationships. It exists to protect both business interests and employee rights in the process.
Don’t leave your labour compliance to chance.
The amended Dismissal Code makes one thing clear: documentation and fair process are non-negotiable. Deel Local Payroll provides the cloud-native infrastructure to track performance, record disciplinary actions, and manage probation transparently. Protect your business and your employees with a single, secure system of record.
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