The Department of Employment and Labour has published a new draft code of best practise on dismissals for public comment. 

Despite protests from trade unions, the new dismissal law does not override the LRA. 

The new draft code gives employers more procedural leeway, simplifies disciplinary procedures, extends the grounds for dismissal on the grounds of incapacity and reduces protection against dismissal for employees. 

The bill allows smaller companies to use less formal disciplinary methods. However, the lack of definitions for “small company” and “less formal approach” poses a challenge. 

Employer discretion in this matter can lead to procedural problems. 

As section 5(5) requires written disciplinary policies and procedures for medium and large employers, smaller employers may not be subject to this requirement. 

MCCI advises our SMEs: Before you change anything, you should contact your labour consultant. Experience has shown that employers need to be very well prepared and any small mistake can cost an organisation dearly.