The amended Code of Good Practice: Dismissal introduces a significant structural shift by consolidating all aspects of dismissal into a single, comprehensive framework.

Previously, dismissal guidelines were divided between Schedule 8 of the Labour Relations Act (which addressed general dismissal principles) and a separate code dealing with retrenchments. The new Code brings these elements together into one unified document, creating a more coherent and accessible reference point for employers, employees, and practitioners alike.

This consolidation is more than a simple administrative update. It reflects a clear policy intention to simplify and streamline the application of dismissal law, making it easier for all stakeholders to understand and apply the relevant principles consistently.

Flexibility for Small Businesses

A particularly important development is the Code’s explicit recognition of the practical limitations faced by small businesses.

The Code acknowledges that smaller enterprises may not have the resources or capacity to follow lengthy or highly formalised dismissal procedures. As a result, it enables simpler, less formal processes, provided that the core principles of procedural and substantive fairness are upheld.

This approach offers meaningful relief to small employers, who often face disproportionate compliance burdens. At the same time, it maintains the necessary safeguards to protect employees’ rights.

From a practical perspective, this flexibility must still be applied carefully. Employers should ensure that even simplified processes remain fair, consistent, and properly documented. Keystone Human Capital can assist businesses in implementing compliant, practical procedures that align with the Code while remaining operationally efficient.

Looking Ahead

In our next article, we will examine how the updated Code addresses dismissals relating to misconduct, incapacity, and operational requirements (section 189). We will also provide practical guidance and suggested policy and template updates tailored specifically for small businesses.