{"id":836974,"date":"2025-09-07T08:00:00","date_gmt":"2025-09-07T06:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=836974"},"modified":"2025-09-07T06:59:12","modified_gmt":"2025-09-07T04:59:12","slug":"big-changes-for-retrenchments-and-dismissals-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/836974\/big-changes-for-retrenchments-and-dismissals-in-south-africa\/","title":{"rendered":"Big changes for retrenchments and dismissals in South Africa"},"content":{"rendered":"\n<p>The Minister of Employment and Labour, Nomakhosazana Meth, has gazetted a new code of practice for the dismissal of employees.&nbsp;<\/p>\n\n\n\n<p>The code became effective from the date of publication, 4 September, and repeals the previous Schedule 8 Code of Good Practice on Dismissal and the Code of Good Practice Based on Operational Requirements.&nbsp;<\/p>\n\n\n\n<p>Nadeem Mahomed and Sashin Naidoo from Cliffe Dekker Hofmeyr said the code provides comprehensive and practical guidelines to employers, employees and trade unions.&nbsp;<\/p>\n\n\n\n<p>This includes matters related to misconduct, incapacity, and operational requirements, i.e. retrenchments, under the Labour Relations Act.<\/p>\n\n\n\n<p>The final code ultimately mirrors the draft code released for comment on 22 January 2025.<\/p>\n\n\n\n<p>The experts said the code is incredibly general and allows for departures in appropriate circumstances, particularly for small businesses.<\/p>\n\n\n\n<p>Regarding the code\u2019s substance, it confirms that dismissals must have a procedurally fair process linked to conduct, capacity or operational requirements.<\/p>\n\n\n\n<p>Moreover, the process needs to be context-appropriate. Dismissal is reserved for cases where continued employment is intolerable.&nbsp;<\/p>\n\n\n\n<p>However, the code allows small businesses flexibility in applying disciplinary and consultation procedures.&nbsp;<\/p>\n\n\n\n<p>It also emphasised that the purpose of a fair procedure is to foster dialogue and reflection, and reflects the court&#8217;s view regarding the informal nature of disciplinary hearings.&nbsp;<\/p>\n\n\n\n<p>It also signals a legislative move towards a decriminalised approach to procedural fairness.&nbsp;<\/p>\n\n\n\n<p>Generally, employees involved in similar misconduct under similar circumstances should receive comparable sanctions.<\/p>\n\n\n\n<p>However, if the misconduct damages the employment relationship irreparably, dismissal can be fair, even if it&#8217;s inconsistent with prior sanctions.&nbsp;<\/p>\n\n\n\n<p>The code also guides on probationary periods, such as a reasonable duration and a less onerous justification for non-confirmation.&nbsp;<\/p>\n\n\n\n<p>It also looks at incapacity, including incompatibility, ill-health and poor performance, as well as participation in unprotected strikes, including the issuing of ultimatums and providing sufficient time to comply.&nbsp;<\/p>\n\n\n\n<p>Misusing probation as a mechanism to deprive employees of permanent employment status may constitute an unfair dismissal.&nbsp;<\/p>\n\n\n\n<p>Finally, the code integrates retrenchment guidance, requiring written notice, good faith consultation on alternatives, fair and objective selection criteria, statutory severance, and preferential re-employment.&nbsp;<\/p>\n\n\n\n<p>The code of practice can be found below: <\/p>\n\n\n\n<div data-wp-interactive=\"core\/file\" class=\"wp-block-file\"><object data-wp-bind--hidden=\"!state.hasPdfPreview\" hidden class=\"wp-block-file__embed\" data=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/09\/Dismissal-Code-of-Practice.pdf\" type=\"application\/pdf\" style=\"width:100%;height:600px\" aria-label=\"Embed of Dismissal- Code of Practice.\"><\/object><a id=\"wp-block-file--media-11f0ef0b-8417-4a06-ad25-c16fc96f0e8d\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/09\/Dismissal-Code-of-Practice.pdf\">Dismissal- Code of Practice<\/a><a href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/09\/Dismissal-Code-of-Practice.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-11f0ef0b-8417-4a06-ad25-c16fc96f0e8d\">Download<\/a><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Second big change this week<\/h2>\n\n\n\n<p>The new dismissal code was issued shortly after the Employment Equity Reporting period officially opened in South Africa.\u00a0<\/p>\n\n\n\n<p>The submission of EE reports for the 2025 reporting period began on Monday, 1 September.&nbsp;<\/p>\n\n\n\n<p>This aligns with the Employment Equity Amendment Act of 2022, which became operational from 1 January 2025.<\/p>\n\n\n\n<p>The new law mainly applies to businesses that employ 50 or more people and requires that their workforces show the country\u2019s demographics at all levels.&nbsp;<\/p>\n\n\n\n<p>The department has thus set out specific numerical targets across 18 industries in South Africa that businesses must fill with \u2018designated employees\u2019.<\/p>\n\n\n\n<p>These designated employees include black (African, Coloured and Indian), female and disabled workers.<\/p>\n\n\n\n<p>Failure to see employers face fines of up to\u00a0R1.5 million or 2% of turnover, and have their\u00a0 Employment Equity Compliance Certificates, which are necessary for state contracts, withdrawn.\u00a0<\/p>\n\n\n\n<p>Under the EE Act, designated employers must prepare and implement an EE plan from 1 September 2025 until 31 August 2030.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>South Africa has a new code of practice for the dismissal of employees, and includes changes for retrenchments. <\/p>\n","protected":false},"author":95,"featured_media":813922,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[1523,4444],"class_list":["post-836974","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government","tag-cliffe-dekker-hofmeyr","tag-department-of-labour"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/836974","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=836974"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/836974\/revisions"}],"predecessor-version":[{"id":836979,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/836974\/revisions\/836979"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/813922"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=836974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=836974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=836974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}