LRA: DEPARTMENT UNPACKS AMENDMENT PLANS, DISMISSALS CODE CHANGES

LRA: DEPARTMENT UNPACKS AMENDMENT PLANS, DISMISSALS CODE CHANGES

• 05 May 2025
• Labour Law
• SA Legal Academy

The Department of Employment & Labour has issued a media statement explaining the rationale underpinning draft amendments to the code of good practice on dismissals. This is noting that the public commentary period on changes envisaged closed on 23 March 2025, as SA Legal Academy reported at the time.

Interestingly, the statement also unpacks plans for ‘the repeal of sub-section 189A(13)’ as well as proposed amendments to section 77 and sub-section 186(2) of the 1995 Labour Relations Act, the intention of which:

• is not to ‘remove the right to challenge procedural unfairness’, but instead
• to ‘restore balance by allowing such challenges to be brought more effectively after the retrenchment, through ordinary unfair dismissal proceedings’ [by repealing sub-section 189A(13)]
• to ‘reduce unnecessary legal disputes over management decisions like promotions, demotions and benefits … already protected through collective agreements, contract law, and Employment Equity legislation’ [by amending sub-section 186(2)], and
• to ensure that ‘protest action remains relevant, justified and reflective of current socio-economic realities’ (by amending section 77).

According to the statement, these proposals have yet to be presented to Parliament and Cabinet – presumably before being released for public comment.

Turning to the code of good practice on dismissals, the statement notes that the amendments envisaged:

• do not ‘weaken labour protections’
• are intended to promote:
  • economic growth, and
  • meaningful employment opportunities
• allow small businesses with ‘limited resources’ the ‘flexibility’ in applying procedures
• seek to ensure that dismissals are:
  • ‘based on legitimate reasons’
  • not arbitrary, and that
  • ‘employees are treated fairly (and) given an opportunity to respond’
• will apply to all employees hired at least three months beforehand, thus:
  • clarifying procedures applicable to new job entrants, and
  • allowing employers ‘to assess whether a new hire is suitable’.

In the context of the term ‘incapacity’, according to the statement the intention is that it:

• should not apply to employees who ‘raise their voice for justice’, but that
• it should instead only apply to an employee ‘who, over time, proves unable to work harmoniously with others or with(in) the essential culture of the organisation’.

Please click the links below for more information:

• media statement
• SA Legal Academy report on draft amendments to code of good practice

Published by SA Legal Academy Policy Watch

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