Code of Good Practice: Dismissal

26 September 2025 2 min read

At a glance

The new Code of Good Practice: Dismissal (Code) came into effect on 4 September 2025.
The Code provides guidelines in relation to the four recognised grounds for dismissal.
It provides greater flexibility for small businesses recognising that account needs to be taken of the circumstances in which a business operates.

The new Code of Good Practice: Dismissal (Code) came into effect on 4 September 2025 and replaces Schedule 8: Code of Good Practice: Dismissal and the Code of Good Practice on Dismissal Based on Operational Requirements. The Code sets out guidelines for carrying out dismissals in South Africa.

The Code provides guidelines in relation to the four recognised grounds for dismissal in South Africa, namely misconduct, incapacity for poor performance, incapacity for ill health or injury, and dismissals based on the employer's operational requirements.

The main changes that have been brought about as a result of the Code are as follows:

There is greater flexibility for small businesses. In this regard, the Code provides that small businesses cannot be expected to engage in time-consuming investigations or pre-dismissal processes and there is recognition that account needs to be taken of the circumstances in which the business operates. Accordingly, simpler, less formal processes may be appropriate for smaller businesses.
The Code recognises that employees may be dismissed for incompatibility and this should be dealt with under the category of incapacity for poor performance.
A number of the principles that have developed from the case law in relation to probation and performance management of senior employees have now been codified in the Code.
The purpose of probation has been expanded upon so that it is not only to assess performance but also to assess suitability for employment. Much like the previous code, the Code reinforces that an employee on probation must be afforded an opportunity to make representations before the employer dismisses the employee or extends the probationary period. Furthermore the reasons for dismissal during the probationary period may be less compelling than when a dismissal is effected after the probationary period.