Amy Fraser3 February 2025 | 10:54

SA labour law's new rules for firing employees: How this might benefit small businesses

The new Draft Code of Good Practice on Dismissal addresses all aspects leading to the termination of employment.

SA labour law's new rules for firing employees: How this might benefit small businesses

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Lester Kiewit interviews Michael Bagraim, Labour lawyer and DA Member of Parliament.

Listen below.

The Department of Employment and Labour has introduced the first significant update to South Africa’s dismissal code since 1996. The update aims to simplify the process for small businesses while ensuring fairness.

The Draft Code of Good Practice on Dismissal acknowledges smaller employers' unique challenges and clarifies that they are not required to follow the same lengthy procedures as larger corporations.

Bagraim explains that dismissal can occur if an employee is underperforming, has violated company policy, and has been given the opportunity to respond. 

He emphasises that small businesses should not be expected to undertake time-consuming investigations or pre-dismissal procedures, as they often lack dedicated HR departments with the necessary expertise.

"Treat your employee the same way that you would like to be treated."
- Michael Bagraim, Labour lawyer and DA Member of Parliament 

The updated code also clarifies that employers can dismiss employees on probation if they fail to meet job expectations or do not fit into the workplace culture.

Employers are no longer required to warn such employees that dismissal may be imminent if their performance does not improve.

However, the employer must still allow the employee to respond to unsatisfactory performance allegations before making a final decision.

"It's making it more user-friendly."
- Michael Bagraim, Labour lawyer and DA Member of Parliament 

Scroll up to the audio player to listen to the interview.