The Department of Labour and Employment has published a new Draft Code of Good Practice on Dismissals, which introduces a system for possible retrenchments.

The draft code was gazetted in accordance with the Labour Relations Act (LRA) on 21 January 2025 and was signed by Minister of Employment and Labour, Nomakhosazana Meth.

Cliffe Dekker Hofmeyr noted that the draft code emphasises that the purpose of a fair procedure is to foster dialogue and reflection.

This fair procedure allows an employee to respond to allegations of misconduct.

The draft code also states investigations and enquiries into misconduct can be informal, with their nature tailored to the specific context and size of the employer.

They can also look into the frequency and severity of the misconduct in question.

Cliffe Dekker Hofmeyr said that his approach is consistent with the decriminalisation of disciplinary processes.

The draft code also includes guidelines on dismissals due to operational requirements, which were previously absent from the existing Code of Good Practice on Dismissals.

It was instead found under a separate Code of Good Practice on Operational Requirements.

The Draft Code’s proposed Annexure A also states that notices given in terms of section 189 of the LRA should be given in this form.

This relates to notices of possible retrenchments.

Interested parties will have 60 days, until 22 March, to submit their proposals to the Department of Employment and Labour.

The Draft Code of Good Practice on Dismissals can be found below:

This is not the first major update from the Department of Labour this year, with the Employment Equity Amendment Act (EEAA) coming into force on 1 January 2025.

The new laws, which were signed by President Cyril Ramaphosa in April 2023, took time to be implemented amid extreme backlash.

Most of the changes in the EEAA are specific to employers with over 50 employees, called designated employers.

The most noteworthy of amendments allow the Minister Meth to set numerical targets for the 18 different sectors identified by the Minister.

The amendments are set to introduce sectoral numerical targets to ensure that there is an equitable representation of historically disadvantaged groups.

This includes race, gender and disability at all occupational levels in the workforce.

Designated employers will need to comply with sectoral targets once the laws are enforced.

Two separate draft regulations that set out the proposed sectoral targets have already been published.

However, Minister Meth is yet to issue a final version of such regulations.

Despite the regulations not being published, employers were still expected to submit their Employment Equity (EE) reports for 2024 earlier this month.

The deadline for employers to submit their 2024 Reports (EEA2 & EEA4 forms) was midnight on 15 January 2025.

That said, the Department of Employment and Labour said that employers are expected to use EE legislation that predates the latest amendments.
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Originally posted on BusinessTech