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UNDERSTANDING DIFFERENT TYPES OF DISMISSALS

Written by Hulisani Ravhudzulo


The hairdressing, cosmetology, beauty, and skincare industry in South Africa is a highly people-driven sector, characterised by small establishments, client-facing services, and performance-based work. Managing dismissals in this environment requires a careful balance between operational needs and compliance with labour legislation.


Dismissals in South Africa are governed primarily by the Labour Relations Act 66 of 1995 (LRA) and guided by the Code of Good Practice: Dismissal (2025), which came into effect on 4 September 2025. This new Code consolidates previous dismissal guidelines into a single framework and reinforces that all dismissals must be both substantively and procedurally fair.


In addition, employers in this sector must consider the Main Collective Agreement of the National Bargaining Council for Hairdressing, Cosmetology, Beauty, and Skincare Industry, which regulates wages, working conditions, and disciplinary standards.


Legal Framework Governing Dismissals

Section 188 of the LRA provides that a dismissal is unfair unless the employer can prove:

  • A fair reason, and

  • A fair procedure


The 2025 Code of Good Practice on Dismissal reinforces that dismissals fall into three main categories:

  1. Misconduct

  2. Incapacity

  3. Operational Requirements


The Code also recognises the realities of small establishments, allowing for less formal procedures, provided fairness is maintained.


Dismissal for Misconduct

Misconduct refers to a breach of workplace rules or standards.


Examples in the Industry

  • Misappropriation/Theft of products or cash

  • Absenteeism or late coming

  • Poor client service or rudeness

  • Gross insubordination

  • Hygiene violations (critical in skincare and cosmetology)

  • Substance abuse at work


Legal Requirements

The employer must show:

  • A rule existed and was reasonable

  • The employee knew or should have known the rule

  • The rule was consistently applied

  • Dismissal was an appropriate sanction


Process

The Code allows flexibility:

  • Informal counselling for minor offences

  • Progressive discipline (warnings → final warning → dismissal)

  • Formal hearing for serious misconduct


Dismissal is generally a last resort, unless the misconduct is gross (e.g., theft or assault).


Industry Insight

In establishments, trust and reputation are critical. A single incident of theft or client mistreatment can justify dismissal if it destroys the employment relationship.


Dismissal for Incapacity

Incapacity refers to the employee’s inability to perform their duties, either due to performance, health, or other factors.


Types of Incapacity


  1. Poor Work Performance

Common in the beauty sector, where:

  • Targets are not met

  • The quality of work is substandard

  • Client retention is low


Requirements:

• Clear performance standards

• Training and guidance provided

• Reasonable time to improve


  1. Ill Health or Injury

Relevant where employees:

  • Develop skin conditions

  • Cannot stand for long hours

  • Are medically unfit for treatments


Employers must:

  • Obtain medical evidence

  • Consider alternatives (light duty)

  • Consult before dismissal


  1. Incompatibility (New – Recognised in 2025 Code)

The 2025 Code formally recognises incompatibility as a form of incapacity.

This includes:

  • Personality clashes

  • Negative attitude affecting team morale

  • Conflict with management or clients

  • Not aligned with the organisational workplace culture


In an establishment environment, where teamwork and client experience are key, incompatibility can significantly disrupt operations.


Important:

Employers must attempt to resolve the issue (counselling, mediation) before dismissal.


  1. Incarceration (Imprisonment)

The new Code recognises that incarceration may constitute incapacity, as the employee is unable to tender services.


In practice:

  • If detention is short, consider leave or suspension

  • If prolonged, dismissal may be justified


Employers must still follow a fair process and consider:

  • Duration of incarceration

  • Nature of the offence

  • Operational impact


Dismissal for Operational Requirements (Retrenchment)

Operational requirements refer to dismissals based on the economic, structural, or technological needs of the establishment.

Examples in the Industry

  • Decline in clients

  • Closure of an establishment branch

  • Introduction of new technology, reducing staff

  • Financial distress


Short Time as an Alternative

Before retrenchment, employers should consider:

  • Short time (reduced working hours)

  • Temporary layoffs

  • Shift restructuring


Short time is particularly relevant in the beauty industry during:

  • Seasonal downturns

  • Economic slumps

  • Load-shedding disruptions


Legal Requirements

Employers must:

  • Consult with employees and trade unions where applicable

  • Consider alternatives

  • Apply fair selection criteria

  • Pay severance (minimum one week per completed year of service)


The 2025 Code of Good Practice on Dismissal integrates retrenchment guidance into the same framework as other dismissals, improving consistency.


The Role of the Main Collective Agreement

The Main Collective Agreement for the Hairdressing, Cosmetology, Beauty, and Skincare Industry plays a critical role.


Key Implications

  • Sets the minimum wages and conditions of employment

  • Regulates working hours and leave

  • May prescribe disciplinary procedures

  • May regulate short-time arrangements


Importantly, collective agreements take precedence over the Code where applicable.

Employers must therefore ensure that:

  • Internal policies align with the collective agreement

  • Dismissals comply with both the LRA and sectoral rules


Procedural Fairness: A Practical Approach

The 2025 Code moves away from rigid procedures and promotes a flexible, fairness-based approach.


Minimum Requirements

  • Inform the employee of the allegations

  • Allow the employee to respond

  • Consider representations

  • Communicate the outcome


Formal hearings are not always required, especially in small establishments, but fairness remains essential.


Key Risks in the Beauty Industry

Employers in this sector often face:

  • Informal Human Resources and or Industrial Relations practices

  • Lack of written contracts

  • Inconsistent discipline

  • Emotional decision-making


These increase the risk of unfair dismissal claims at the CCMA.


Practical Guidelines for Employers

To ensure compliance and reduce risks:


1. Have Clear Policies

  • Discipline

  • Performance management

  • Client service standards


2. Apply Progressive Discipline

  • Do not dismiss for minor offences


3. Keep Records

  • Warnings

  • Performance reviews

  • Client complaints


4. Use Short Time Before Retrenchment

  • Demonstrates fairness and avoids job losses


5. Align with Collective Agreement

  • Especially important in this regulated sector


6. Focus on Fairness, Not Formality

  • The process must be fair, not necessarily complex


Conclusion

Dismissals in the hairdressing, cosmetology, beauty, and skincare industry must be approached with both legal compliance and practical sensitivity. The introduction of the 2025 Code of Good Practice on Dismissal has modernised the framework by:

  • Consolidating all dismissal types into one Code

  • Recognising incompatibility and incarceration

  • Allowing flexibility for small establishments

  • Reinforcing fairness as the central principle


Ultimately, whether dealing with misconduct, incapacity, or operational requirements, employers must ensure that every dismissal is justified, reasonable, and procedurally fair.

In a service-driven industry where reputation, teamwork, and client experience are critical, properly managing dismissals is not only a legal necessity but an operational imperative.




 
 
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