On 4 September 2025, South Africa entered a new phase in employment law with the implementation of the amended Code of Good Practice: Dismissal (“the Code”).

This updated Code consolidates, replaces, and modernises the guidelines previously contained in Schedule 8 of the Labour Relations Act, 1995 (LRA), as well as the Code of Good Practice on Dismissal Based on Operational Requirements (Department of Employment and Labour, 2025).

While the fundamental principle of fairness in dismissals remains unchanged, the 2025 Code introduces several important developments. It formalises key principles that have evolved through case law, provides greater clarity in areas that were previously uncertain, and acknowledges the practical realities faced by employers. Notably, the Code recognises that less formal procedures may still be fair in certain circumstances and explicitly takes into account the limited resources and capacities of small businesses.

In addition, the Code expands the concept of probation to include an employee’s “suitability for employment” and formally recognises incompatibility as a valid ground for dismissal under incapacity.

It is important to note that the Code serves as a guideline. It does not create new or separate employment rights and must be interpreted alongside the applicable legislation and any relevant collective agreements governing the matters addressed in the Code.