Draft Code on Dismissals and Labour Law Amendments has been highlighted in a recent media statement by the Department of Employment and Labour, outlining proposed changes to the Code of Good Practice on Dismissal and key sections of the Labour Relations Act (LRA). These amendments represent one of the most significant reform efforts in recent years, aiming to balance worker rights with business flexibility.
Key updates by the Department include:
- Introduction of a three-month qualifying period for new employees, as opposed to the 12 months proposed by business – hereby allowing employers greater flexibility in assessing suitability, while retaining protection against automatically unfair dismissals.
- Simplification of dismissal procedures, particularly for small employers, while preserving the requirement of substantive and procedural fairness.
- Proposed repeal of Section 189A(13) to reduce urgent interdicts during retrenchment consultations and restore balance to the consultation process.
- Refinement of Section 186(2) to reduce litigation related to managerial decisions (e.g., promotions, demotions, benefits), aiming to streamline dispute resolution.
- Introduction of a 24-month limit on the validity of NEDLAC-issued protest action certificates to ensure relevance and proper dialogue.
As per the media release regarding the update on the Draft Code, issued on 4 May 2025, the Department maintains that these amendments aim to stimulate job creation while ensuring continued protection of core worker rights. With the public comment period now closed, the draft Code is under ministerial review for publication and implementation.
We encourage employers, HR professionals, and legal practitioners to engage with these developments and share their insights.
