South Africa has officially entered a new chapter in its labour landscape with the gazetting of the Code of Good Practice on Dismissals on 4 September 2025.

This draft Code reshapes workplace discipline and dismissals across the categories of dismissals related to misconduct, incapacity, and operational requirements, with a clear focus on balancing fair labour practices with the practical realities of the workplace.

This Code allows smaller businesses more flexibility, less rigid disciplinary processes and special provisions.

Key features of the Code:

1. Flexibility for smaller enterprises

Recognising the unique challenges faced by small businesses, the draft Code allows for greater flexibility by acknowledging that stringent pre-dismissal procedures may not always be feasible for smaller businesses that have limited HR resources.

2. Informal Disciplinary Processes

The new Code highlights that not every case of misconduct requires a formal disciplinary hearing. The Code highlights that investigations and processes can be adapted based on the organisation’s size, as well as the severity and frequency of the offence.

3. Consistency clarified

While consistency remains important in disciplinary decisions, the Code clarifies that a lack of consistency does not, in itself, render a dismissal unfair. This provides Employers with room to assess cases on their own merit.

4. Incompatibility as grounds for incapacity

For the first time, the Code explicitly recognises incompatibility as a form of incapacity. This covers situations where an Employee struggles to work constructively with colleagues or within the organisational culture. The Code sets out steps Employers should follow before dismissal is considered, including counselling, support, and attempts to resolve interpersonal issues.

5. Clarity on retrenchments

Clearer guidelines on dismissals for operational requirements have been introduced, including prescribed notices and detailed consultation processes. This reduces uncertainty for Employers navigating restructuring, which could result in Employee redundancies.

6. Enhanced guidance on probation

The Code also introduces a more flexible approach for Employers to adopt pertaining to probation management and performance assessment.

Supporting Employers through transition

The gazetted Code represents a shift in South Africa’s dismissal framework and requires Employers to review their disciplinary procedures, incapacity frameworks, probation practices, and retrenchment processes to ensure alignment.

FvT HR Consulting is ready to support organisations in interpreting and implementing the new Code, updating internal procedures, and ensuring practical and legally compliant application.

For guidance on how the new Code of Good Practice on Dismissals may impact your organisation, contact FvT HR Consulting. We assist Employers in navigating the evolving labour landscape with confidence and clarity.

Written by Bernadine Goosen (HR Consultant)