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On 4 September 2025, the landscape of South African labour law changed significantly. The Minister of Employment and Labour published a new Code of Practice: Dismissal, completely replacing the old rules, including the well-known Schedule 8.

This marks the most comprehensive update to dismissal principles in over 20 years. But what does it actually mean for employers and employees? Based on an analysis by our Labour Law expert, Melissa Irwin-Tarica, this new code signals a major shift from a rigid checklist to a more human, conversation-based approach.

The Big Shift: From a Formal Checklist to Fair Context

The old Schedule 8 was often treated like a rigid checklist. The new 2025 Code, however, emphasizes context, dialogue, and proportionality. It reminds everyone that dismissal should always be a last resort, used only when the employment relationship has become truly intolerable.

Crucially, the code acknowledges that a small business shouldn’t be expected to have the same formal HR processes as a large corporation. As long as an employee is clearly informed of the allegations and given a fair chance to respond, a less formal process can still be considered fair.

Rethinking Misconduct: It’s About the Relationship

When it comes to misconduct, the new code focuses less on mechanical punishment and more on the integrity of the employment relationship. While the core principles remain (was there a valid rule, did the employee know it, was it applied consistently?), there’s a new layer of nuance.

The code recognizes that even if similar past offenses didn’t lead to dismissal, a termination may still be fair if the employee’s actions have irreparably damaged the trust essential for their role.

Clearer Rules for Probation

The new code provides dedicated guidance for employees on probation, clarifying what is expected of employers. Before a contract can be terminated for poor performance during probation, an employer must ensure that:

This change aims to prevent employers from using probation simply as a way to avoid making permanent appointments.

A Unified Approach to Retrenchment

One of the most practical changes is the integration of retrenchment rules into the main code. Previously, employers had to consult multiple documents. Now, all dismissal types are covered in a single, consolidated framework.

The core duties for a fair retrenchment are reaffirmed—including good faith consultation, disclosure of information, fair selection criteria, and severance pay—but they are now easier to find and follow, especially for smaller businesses.

The Bottom Line: Fairness Through Conversation

The 2025 Code of Practice doesn’t reinvent the law, but it does restore its human element. It moves away from a “criminal trial” model of discipline and pushes both employers and employees toward genuine dialogue.

Minor procedural mistakes are less likely to render a dismissal unfair, provided the overall process was fair and allowed for meaningful participation. The message is clear: discipline and dismissal are no longer just about compliance; they are about conversation.

Need help navigating these new changes? The rules of dismissal can be complex. Contact the experts at Snaid & Morris to ensure your processes are fair, compliant, and protect your business.