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A comprehensive new Draft Code of Good Practice on Dismissal represents the most significant reform of South Africa's employment dismissal framework in recent years, offering employers enhanced flexibility and clearer guidelines while maintaining fair labour practices.
The draft code, which consolidates and updates provisions previously scattered across Schedule 8 and Section 189 of the Labour Relations Act, introduces several groundbreaking changes that will significantly impact how businesses handle dismissals:
"This represents a fundamental shift in approach, moving from rigid procedural requirements to principle-based guidelines that can be adapted to different business circumstances," says Jonathan Goldberg the Chairman of Global Business Solutions, noting the code's emphasis on practical implementation.
Key changes for employers include:
Small Business Relief: For the first time, the code explicitly recognises the practical constraints faced by small businesses, exempting them from overly burdensome procedural requirements and acknowledging their limited HR resources.
Streamlined Procedures: The removal of rigid timeframes (such as the previous 48-hour notice requirement) in favour of "reasonable" standards, offering employers greater procedural flexibility while maintaining fairness.
Enhanced Legal Protection: A more structured framework for documentation and decision-making, providing employers stronger defense against unfair dismissal claims through clearer record-keeping requirements and consistency guidelines.
Progressive Discipline Framework: A comprehensive approach to workplace discipline that emphasises correction over punishment, with clear guidelines for implementing graduated responses before reaching dismissal.
Operational Requirements: Integration of retrenchment procedures with clearer guidance on consultation requirements and selection criteria, reducing procedural uncertainty in restructuring situations.
The draft code also introduces a more flexible approach to probation management and performance assessment, with clearer frameworks for evaluation and decision-making. This change particularly benefits businesses dealing with complex performance issues or requiring specialized skills assessment.
"The new code strikes a careful balance between protecting employee rights and recognising business operational realities," comments John Botha. "It provides employers with more practical tools for managing the employment relationship while maintaining fundamental fairness principles."
For businesses, the implications are significant:
Reduced risk of procedural challenges in dismissal cases
More efficient dispute resolution processes
Better protection through enhanced documentation requirements
A clearer framework for consistent decision-making
Greater flexibility in adapting procedures to business circumstances
The draft code is currently open for public comment, with implementation expected to significantly improve employment relationship management while reducing legal uncertainty for businesses.
Register for our Pop-Up Event: The New Code of Good Practice on Dismissal (https://globalretailoutlet.co.za/showevent/79)
Subjects like the proposed Code of Good Practice on Dismissal will be on the agenda at our must-attend Annual Employment Conference (#AEC25) on the 19th of March 2025. Join John Botha, Johnny Goldberg, Craig Kirchmann, Dr. Mark Bussin, and many more speakers at the conference. Set your organisation up for success in 2025 and register today! (Register here: https://globalretailoutlet.co.za/showevent/73)
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