CODE OF GOOD PRACTICE: DISMISSAL
- EOHCB National
- Sep 18
- 2 min read
The Code of Good Practice: Dismissal is a national benchmark for fairness in South African labour law. While not a statute that creates offences, it carries legal weight: CCMA commissioners and Labour Courts rely on it to decide whether a dismissal is procedurally and substantively fair.
Why the Code Exists
The Code of Good Practice: Dismissal was issued in terms of Section 203 of the Labour Relations Act 66 of 1995 (LRA). Its purpose is to:
Provide practical guidance to employers and employees on fair dismissal procedures.
Ensure substantive fairness (valid reason for dismissal) and procedural fairness (fair process is followed).
Promote consistency in how dismissals are handled, reducing arbitrary or unfair terminations.
Support labour peace by setting common standards for discipline and dismissal across workplaces.
What the Code Represents
The Code is not a binding law in itself but a guideline with legal standing. It represents:
Best practice: The recommended standards of fairness when dismissing an employee.
Benchmark for reasonableness: Employers must show that they acted in line with the Code to prove fairness.
Balance of rights: It protects both the employer’s right to run a productive business and the employee’s right to fair labour practices (as guaranteed by Section 23 of the Constitution).
Key principles it highlights:
Dismissal is a last resort after attempts at correction (e.g., counselling, warnings).
Employees must know the rule or standard they allegedly broke.
They must be given an opportunity to state their case before a decision is made.
Enforceability
Although the Code itself is a guideline, it is enforceable through the Labour Relations Act and dispute-resolution bodies:
CCMA (Commission for Conciliation, Mediation and Arbitration):
When an employee claims unfair dismissal, the CCMA uses the Code as the yardstick to decide whether the dismissal was fair.
An employer who cannot show compliance with the Code risks a ruling of unfair dismissal.
Labour Court:
Judges consider the Code when interpreting the LRA and deciding dismissal disputes.
Non-compliance can result in reinstatement of the employee or compensation.
Bargaining Councils & Sectoral Dispute Bodies:
Apply the same principles when arbitrating unfair dismissal cases in specific industries.
Summary Table
Aspect | Details |
Legal Source | Section 203 of the Labour Relations Act (LRA) |
Nature | Guideline with statutory recognition |
Purpose | Fair and consistent dismissal practices |
Key Requirements | Substantive reason + Procedural fairness |
Enforceable Through | CCMA, Bargaining Councils, Labour Court |
Effect of Non-Compliance | Dismissal may be ruled unfair, leading to reinstatement or compensation |
