Keystone Human Capital

23/04/2026

https://keystonehumancapital.co.za/structural-reorganisation-and-consolidation-for-dismissals/
South Africa’s 2025 Dismissal Code: What Employers and Employees Need to Know
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.

20/04/2026

https://keystonehumancapital.co.za/structural-changes-in-the-2025-dismissal-code-what-it-means-for-employers-and-small-businesses/
The amended Code of Good Practice: Dismissal introduces a significant structural shift by consolidating all aspects of dismissal into a single, comprehensive framework.

Previously, dismissal guidelines were divided between Schedule 8 of the Labour Relations Act (which addressed general dismissal principles) and a separate code dealing with retrenchments. The new Code brings these elements together into one unified document, creating a more coherent and accessible reference point for employers, employees, and practitioners alike.

This consolidation is more than a simple administrative update. It reflects a clear policy intention to simplify and streamline the application of dismissal law, making it easier for all stakeholders to understand and apply the relevant principles consistently.

Flexibility for Small Businesses

A particularly important development is the Code’s explicit recognition of the practical limitations faced by small businesses.

The Code acknowledges that smaller enterprises may not have the resources or capacity to follow lengthy or highly formalised dismissal procedures. As a result, it enables simpler, less formal processes, provided that the core principles of procedural and substantive fairness are upheld.

This approach offers meaningful relief to small employers, who often face disproportionate compliance burdens. At the same time, it maintains the necessary safeguards to protect employees’ rights.

From a practical perspective, this flexibility must still be applied carefully. Employers should ensure that even simplified processes remain fair, consistent, and properly documented. Keystone Human Capital can assist businesses in implementing compliant, practical procedures that align with the Code while remaining operationally efficient.

Looking Ahead

In our next article, we will examine how the updated Code addresses dismissals relating to misconduct, incapacity, and operational requirements (section 189). We will also provide practical guidance and suggested policy and template updates tailored specifically for small businesses..

18/04/2026

https://businesstech.co.za/news/business/857617/big-change-for-employees-now-earning-over-r22400-a-month-in-south-africa/

Employees in South Africa whose salaries have grown to over R22,400 a month this year now exceed the new 2026 earnings threshold.

10/03/2026

We always maintain that in some instances a mutual termination agreement is a fair solution for both employer and employee.
1. Valid and voluntary accepted end of the relationship.
2. No dismissal, therefore the CCMA has no jurisdiction.
3. Closure for both in a mutually negotiated end of contract.

Contact us to assist with the negotiations and the drafting of the agreement.

https://iol.co.za/news/crime-and-courts/2026-03-09-court-rules-against-employee-claiming-unfair-dismissal-after-signing-separation-agreement/ #

WBHO construction company wins appeal against unfair dismissal claim after former employee signs separation agreement.

17/02/2026

Good to see a client of ours growing and prospering.

17/02/2026

Contact us to get you compliant before a visit from Department of Labour.

The Department of Employment and Labour clarifies the difference between President Cyril Ramaphosa’s announcement of 10,000 new labour inspectors and the existing Project 20K internship programme.

07/02/2026

18/08/2025

So exited to present our team to you. Dr Leon Bosman joined us.

Leon holds a Doctorate in Industrial Psychology. During his career, he spent 13 years as an Academic, of which 10 years were spent as Chairperson of the Department of Industrial Psychology at the University of the Western Cape. He is an experienced and accomplished senior Human Resources Practitioner (and registered Industrial/Organisational Psychologist) with a successful track record (over 25 years) in leading and overseeing the HR function, and driving key strategic HR projects in various organisations at both operational and strategic levels.

Looking forward to offer you more!
https://keystonehumancapital.co.za/our-team/

The Keystone Team

Deon holds a BLC (BA with Law Subjects) from the University of Pretoria and an LLB and Master’s of Law from the University of Stellenbosch. While completing his Master’s, he was also a Junior Lecturer at the Public Law faculty at the University of Stellenbosch.

18/08/2025

Go look at our brand new website! Looking forward to engage.

Keystone Human Capital offers customised HR, Labour Relations and Training Solutions to the dynamic smaller companies driving employment in South Africa.