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.