In 2025, South African employers are bracing for a potentially significant shift in how dismissals and disciplinary actions are handled. A new draft of the Code of Good Practice on Dismissal has been released for public comment and is expected to be formally adopted soon.
These proposed changes aim to simplify disciplinary procedures, particularly for small to medium-sized enterprises (SMEs), while also ensuring that the fundamental rights of employees are still respected. With dismissal-related disputes among the most common cases at the Commission for Conciliation, Mediation and Arbitration (CCMA), this update could be pivotal for employers looking to reduce litigation risk.
Key Changes Employers Should Note
1. Increased Flexibility for Small Employers
One of the headline updates in the draft code is the introduction of a less formal disciplinary process for “small employers.” This reform seeks to accommodate businesses that may not have the administrative infrastructure to run complex or rigid disciplinary hearings.
However, at this stage, the definition of “small employer” remains vague. While it’s assumed this will align with existing thresholds (such as businesses with fewer than 10 employees or limited annual turnover), further clarification from the Department of Employment and Labour is essential.
What this means for you:
- If you run a small or family-owned business, you may soon have more practical leeway in how disciplinary procedures are implemented.
- That said, flexibility does not eliminate your duty to act fairly—it simply modifies how formal the process must be.
2. Renewed Emphasis on Procedural and Substantive Fairness
While the draft code introduces simplifications, it reinforces the importance of fairness in both process and decision-making. Employers must:
- Inform employees of allegations clearly and promptly.
- Give the employee an opportunity to respond to the allegations.
- Base decisions on a fair and reasonable rationale, not personal bias or assumption.
- Document the process to demonstrate that fairness was followed.
This serves as a reminder that shortcuts in due process—even with a simplified code—can still lead to adverse findings at the CCMA or Labour Court.
3. Clarity on Incompatibility, Poor Performance & Ill-Health Dismissals
Historically, terms such as incompatibility and poor performance have created legal grey areas for employers. The proposed draft seeks to standardise the process by offering structured guidance on how to manage:
- Dismissals for poor work performance, particularly where training or support has failed to yield results.
- Cases of incompatibility, where employees struggle to fit into the workplace culture or consistently clash with team members or managers.
- Ill-health or injury-related incapacity, ensuring employers follow a defined and humane process before considering termination.
Clearer guidance in these complex scenarios is a welcome change, particularly for SMEs that may lack dedicated HR professionals.
Why These Changes Matter
Employers frequently find themselves before the CCMA or Labour Court due to poorly managed dismissals. While the intention to discipline may be valid, the process by which it is carried out is often the deciding factor in legal disputes.
The revised draft code seeks to:
- Reduce frivolous CCMA cases by helping employers get it right the first time.
- Provide clear, practical frameworks for managing dismissals in smaller, less formal business environments.
- Balance legal rigour with operational flexibility, particularly in businesses without full-time HR departments.
How to Prepare: Proactive Compliance Steps for Employers
Now is the ideal time to review your disciplinary processes and ensure your internal policies are aligned with the proposed changes. Employers should:
- Audit current disciplinary procedures to identify outdated practices.
- Train managers and team leaders on how to conduct hearings under the revised code.
- Revise employment contracts and employee handbooks to reflect updated disciplinary frameworks.
- Establish templates and checklists that reflect simplified but fair procedures.
Failing to adapt to these changes, especially once the code is adopted, could place your organisation at legal risk—particularly if employees challenge a dismissal as procedurally unfair.
How Labour Law with Luzan Can Support You
At Labour Law with Luzan, we help employers navigate evolving employment laws with confidence. Our team offers:
- Disciplinary Process Audits: A full review of your current procedures, warning templates, and documentation practices.
- Workshops and Training: Equip managers and HR officers with practical tools and legal knowledge for compliant dismissals.
- Customised Disciplinary Toolkits: Ready-to-use policies and templates aligned with the draft and final Code of Good Practice.
If you’re unsure whether your current disciplinary approach will hold up under the revised code, our specialists can help you future-proof your compliance.
Conclusion
The proposed updates to the Code of Good Practice on Dismissal signal a positive move toward simplification without sacrificing fairness. While the changes aim to make disciplinary procedures more accessible, employers must remain diligent in their approach.
Review, prepare, and consult. The time to act is now—before the new code is finalised and in force.
To book a disciplinary process audit or training session for your team, visit www.luzan.co.za or contact us directly for expert guidance tailored to your business.
