Labour Law Changes 2025: Probation Periods

Probation periods are back and official!

(not that they were ever gone and illegal)

Clarification on Probation

Section E of The New Code focuses on various aspects of probation, stating that an employer may require a newly hired employee to serve a period of probation, before the employee’s appointment is confirmed.

The purpose of probation is to give the employer the opportunity to evaluate the employee’s performance and suitability for employment before confirming the employment.  It should not be used for the purpose of depriving the employee of the status of permanent employment.

The duration of the probation period should be determined in advanced, and be of a reasonable duration.  Factors influencing the duration of the probation period would be the nature of the job and the time the employer will require to determine the employees suitability.

When and how to end Probation Periods

An employer may only decide to dismiss an employee or extend the probationary period after the employer has given the employee the opportunity to make representations and the employer has considered these representations.

When fairly deciding to end a probation period- either during or at the end- the employer should take into account the reason for the probationary period, and these reasons can be less compelling than if the employee had completed the probationary period.

Guidance on Dismissals for Poor Work Performance

Before dismissing an employee who is not meeting the required performance standards, the following should be taken into account:-

  1. If the employee was aware of the required performance standard
  2. If the employee was given a fair opportunity to meet the performance standard
  3. The performance standard was reasonably achievable
  4. Dismissal is a fair sanction for not meeting the standard.

You don’t necessarily have to warn an employee that if their performance does not improve, they might be dismissed.

“Depending on the circumstances, an employer may not be required to warn an employee that if their performance does not improve, they may be dismissed.  This may be the case for managers and senior employees whose knowledge and experience enable them to judge whether their performance is adequate and employees with a high degree of professional skills where a departure from that high standard would have caused severe consequences justifying dismissal.”

The new code clarifies expectations for probation, requiring it to be of a reasonable duration and discouraging repeated extensions to avoid confirming employment.

Download a full copy of the New Code of Practice: Dissmals here (New Code of good conduct on Dismissals 040925)

The information on this blog is for general informational purposes only and does not constitute legal advice. It is not a substitute for professional legal counsel, and you should consult with a qualified legal professional for advice tailored to your specific situation

The New Code of Practice: Dismissals

The new Code of Good Practice on Dismissal came into effect in South Africa on 4 September 2025, replacing previous codes and unifying dismissal procedures for misconduct, incapacity, and operational requirements into a single framework.

This updated code aims for a more practical, streamlined process, offering increased flexibility for small businesses while maintaining protections for employees.

Key changes include a new dedicated small business section and the consolidation of previously separate guidelines for dismissal categories into one unified document.

Purpose & Interpretation

Instead of separate codes for misconduct, incapacity, and operational requirements (retrenchment), all are now governed by a single, integrated Code of Good Practice.

Its purpose is to provide guidance to employers, employees, trade unions, and persons applying the code on their legal obligations.

The code is intentionally general, acknowledging that each case is unique.

The code now acknowledges that different approaches to dismissals may be warranted, in different environments.  An example would be large companies, to companies that employ only one or two people.

The key principle behind the Code of Practice on Dismissals is Employers and Employees should treat one another with mutual respect.  The code places a premium on:

  • Employment justice
  • Efficient operation of the employer’s business
  • Speedy resolution of disputes.

It acknowledges that while employees should be protected, employers are entitled to satisfactory and work performance by their employees.

The new code aims to be easier to understand, using more common terms like “retrenchment” over “dismissal for operational requirements”.

Download a full copy of the Code here: New Code of good conduct on Dismissals 040925.

The information on this blog is for general informational purposes only and does not constitute legal advice. It is not a substitute for professional legal counsel, and you should consult with a qualified legal professional for advice tailored to your specific situation.