Groundbreaking Draft Dismissal Code
Read below a summarized version of the article on www.bizcommunity.com by Jonathan Goldberg Chairman of Global Business Solutions
South Africa has a newly published Draft Code of Good Practice on Dismissal which will transform the workplace culture.
The newly published code marks a pivotal reform in South Africa’s employment dismissal framework, providing employers with clearer guidelines, enhanced flexibility, and a strong focus on fair labour practice.
It consolidates, and updates provisions previously scattered across Schedule 8 and Section 189 of the Labour Relations Act.
This represents a fundamental shift in approach, moving from rigid procedural requirements to principle-based guidelines that can be adapted to different business circumstances, with an emphasis on practical implementation.
Key changes for employers include:
Small business relief:
The draft code addresses constraints faced by small businesses, exempting them from overly burdensome procedural requirements and understanding that they have limited HR resources.
Streamlined procedures:
It removes 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:
Employers will have a stronger defence against unfair dismissal claims through clearer record-keeping requirements and consistency guidelines.
Progressive discipline framework:
There will be an emphasis on correction over punishment, with clear guidelines on graduated responses before reaching dismissal.
Retrenchments based on operational requirements:
There will be with clearer guidance on consultation requirements and selection criteria thereby 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.
The new code strikes a careful balance between protecting employee rights and recognising business operational realities. It provides employers with more practical tools for managing the employment relationship.
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.
- Clearer framework for consistent decision-making.
- Greater flexibility in adapting procedures to business circumstances.