What Employers Must Know About the New Code of Good Practice on Dismissals (Effective Sept 2025)

Your quick, clear guide to staying compliant and avoiding unnecessary CCMA headaches in 2026.

South Africa has entered a new era when it comes to dismissing employees. As of 4 September 2025, the Department of Employment and Labour officially replaced the old Schedule 8 dismissal rules and the separate operational requirements code with one consolidated Code of Good Practice on Dismissals under the Labour Relations Act (LRA).

This isn’t just legal housekeeping — it’s a serious change that affects how you handle misconduct, poor performance, incapacity, retrenchments and even probation. If you’re an employer in SA, this is something you must understand.

Why the New Code Matters (Especially for Employers)

The new Code brings everything into one place — which is great for clarity — but it also introduces updated concepts and greater focus on fairness, context and proportionality. Employers can’t simply rely on outdated procedures anymore.

Here’s what’s changed:

1. One Code to Rule Them All

The old system had separate provisions for misconduct and operational requirements (like retrenchments). The 2025 Code consolidates all dismissals — misconduct, incapacity, poor performance, and operational reasons — into one framework.

That means easier reference, but also a greater need to be familiar with every dismissal scenario in one go.

2. Fairness First — Always

Whether it’s misconduct or poor performance, a dismissal will only be fair if:

• there’s a valid reason, and
• the procedure followed is fair and justifiable.

This doesn’t mean you must stick to rigid old processes — the Code actually allows for contextual, flexible procedures where justified. But fairness is still the foundation.

 3. Small Businesses Get Some Relief

One of the big wins in the new Code is that it acknowledges the realities of small employers who don’t have big HR departments or armies of labour consultants.

If your business is small and it’s not practicable to follow super-formal processes, the Code says that flexibility is allowed — provided fairness is still maintained.

This is a huge deal for SMEs who often struggle with complex disciplinary protocols.

4. Probation Has Been Reimagined

Before, probation was mostly about performance. Now, the Code allows employers to evaluate:

• Performance, and
• Suitability for the role.

That means if someone is just not fitting with the role — even if their output isn’t “bad” per se — you can consider dismissal, but fairness still has to be central.

Just don’t misuse probation as a loophole to dodge obligations. That’ll land you at the CCMA quick-smart.

5. Misconduct & Sanctions Are More Balanced

The Code now gives guidance on how to weigh the seriousness of what was done and the harm caused when deciding on sanctions.

This means:

• not all misconduct must lead to dismissal
• but if the damage is serious, dismissal might be fair
• as long as the employee gets the chance to respond.

6. Retrenchments (Operational Requirements) Are Now Integrated

Previously, retrenchment dismissals had their own code. The 2025 Code folds those provisions into the main dismissal framework — with consultation, selection and severance all covered.

This saves employers from juggling two different sets of rules — but it also means you must fully understand how retrenchments fit into this Code.

7. Procedure Still Matters – But It’s Not Always a Courtroom Drill

Gone are the days where dismissals were only about formal pre-dismissal hearings and tons of paperwork. The new Code formally recognises informal proceduresif they’re fair and justified.

What matters most is that:

• employees understand the allegations
• they get a fair chance to respond
• decisions are reasoned and recorded

Formal doesn’t always mean rigid.

What Employers Should Do Next

If you haven’t already reviewed your policies and procedures, now’s the time:

🔹Update Your HR Manuals

Make sure your disciplinary, dismissal and retrenchment procedures match the new Code’s criteria.

🔹Train Managers and HR Teams

Everyone involved in people decisions must know how fairness is assessed — not just what happens, but why.

🔹Review Your Disciplinary Practices

Ensure that misconduct and performance processes are fair, documented and proportionate — and consider flexibility where the Code allows it.

🔹Don’t Guess — Ask an Expert

Small errors in dismissal processes can cost employers dearly at the CCMA. Better to make sure you’re on solid ground before you act.

When it comes to dismissals, understanding the law isn’t optional — it’s essential.

Final Thoughts

The new Code of Good Practice on Dismissals is a major overhaul — possibly the biggest in decades. It’s designed to balance fairness for employees with flexibility for employers, especially smaller ones.

But don’t sleep on it. Getting this wrong could spell long days at the CCMA and unnecessary legal risk.

If you want expert help to revise your policies, train your team, or handle tricky dismissal and disciplinary matters — Chamlabour is here for you.

👉 Contact us to update your dismissal policies, train your managers, and protect your business the right way.