Summary Of Key Facts On The Department Of Employment And Labour’s Code Of Good Practice: Dismissal And Labour Law Amendments

The Department of Employment and Labour has introduced significant reforms to South Africa’s labour laws in the form of the new Code of Good Practice: Dismissal, which came into effect on 4 September 2025, aiming to address the persistent high unemployment rate. The amendments to the previous codes aim to promote job creation, reduce poverty, and support economic growth without undermining worker rights. Key areas of focus in these reforms include: 

1. Simplification of Procedural Fairness: 

The reforms aim to make dismissals fair but more flexible, particularly for small businesses with limited resources. Dismissals must still be based on legitimate reasons, and employees must be given a chance to respond. 

2. Probation and Protection for New Workers: 

A three-month probation period for new employees has been agreed upon, allowing employers to assess new hires without risking excessive legal complications. However, new workers still have full protection against automatically unfair dismissals (e.g., discrimination, whistleblowing) from day one. 

3. Redefinition of Unfair Labour Practices: 

The amendments clarify what constitutes an unfair labour practice, particularly regarding issues like promotions and demotions. The intention is to streamline dispute resolution, making the system more focused and less prone to unnecessary litigation. 

4. Retrenchment Procedures: 

Section 189A (13) is repealed to allow challenges to procedural unfairness after a retrenchment, rather than during the consultation process. This change encourages more meaningful consultation and reduces rushed litigation. 

5. Section 186(2) of the Labour Relations Act Amendments: 

The amendments clarify disputes over management decisions, such as promotions and benefits, ensuring that only serious labour violations are prioritised in the dispute resolution system. 

6. Section 77 Amendments on Protest Actions: 

A 24-month validity period for protest action certificates issued by NEDLAC has been introduced to ensure protests are based on current socio-economic issues. This revision strengthens the legitimacy of protests by ensuring that they reflect up-to-date concerns. 

7. Impact on Small Businesses: 

 The reforms offer small businesses more flexibility in dismissals while ensuring that the basic rights of workers are not compromised. However, dismissals cannot be arbitrary and must involve fair processes. 

These changes are a response to South Africa‘s economic crisis, seeking to balance fair labour practices with the need for job creation. The reforms involve input from organised labour and aim to create a more efficient, transparent, and fair labour system.