Welcome to the Updated Code of Good Practice
Government Gazette 4 September 2025 No. 53294
- Overview of dismissal procedures under the Labour Relations Act, 1995.
- Focus on changes affecting small businesses.
- Importance of compliance to avoid unfair dismissal claims.
What Hasn't Changed
- Mutual respect between employers and employees.
- Fairness in dismissal: A fair reason and procedure are required.
- Protection against automatically unfair dismissals (e.g., discrimination, pregnancy, protected strikes).
Special Provisions for Small Businesses
- Less Formal Processes: Small businesses are not expected to conduct lengthy investigations.
- Practicality: Procedures should be feasible given the size and resources of the business.
- Flexibility: Employers can adopt simpler approaches to discipline and dismissal.
What You Must Still Do
- Notify the employee of allegations (preferably in writing).
- Allow the employee to respond to allegations.
- Consider the employee’s circumstances and disciplinary record.
- Ensure consistency in applying disciplinary measures.
Handling Misconduct
- Serious misconduct may justify dismissal if the employment relationship becomes intolerable.
- Graduated disciplinary measures (warnings, suspension) should be applied first for minor misconduct.
- Informal advice and correction are encouraged for small businesses.
Addressing Poor Performance or Ill Health
- After probation, dismissal for poor performance requires evaluation, training, and guidance.
- For ill health or injury, explore alternatives like adapting duties or finding alternative employment. 21.7An employee's incompatibility, as manifested by an inability to work in harmony with an employer's business culture or with fellow employees, can constitute a form of incapacity which may justify dismissal.
Retrenchments in Small Businesses
- Retrenchments must be a last resort.
- Written notice and consultation are required.
- Selection criteria must be fair and objective (e.g., length of service, skills).
Summary of Changes
- Small businesses have more flexibility but must still ensure fairness.
- Informal processes are acceptable but must follow basic principles of justice.
- Consistency and documentation are critical to avoid disputes.
Stay Compliant and Protect Your Business
- Review your current disciplinary and dismissal procedures.
- Train managers on the updated Code.
- Seek legal advice if unsure about compliance.