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Sunday, June 8, 2025
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How the revised Code of Practice aims to tackle unemployment in South Africa

Manyane Manyane|Published

Minister of Employment and Labour Nomakhosazana Meth is currently collecting comments received on the amendments to the Code of Practice on Dismissals and Labour Laws.

Image: Supplied

The Department of Employment and Labour says the recent amendments to the Code of Practice on Dismissals and Labour Laws are a strategic response to address the country's high levels of unemployment. 

The department said the changes aim to combat unemployment, which is the primary contributor to poverty and inequality in South Africa. 

This comes after labour unions and workers’ groups, including the South African Federation of Trade Unions (Saftu), Casual Workers’ Advice Office, and Simunye Workers’ Forum, called for immediate rejection of the proposed labour law amendments, particularly the Draft Code of Practice on Dismissals, which they believe will weaken worker protections and make it easier for employers to fire employees. They are calling for the changes to be scrapped.

The department said that contrary to the claims that these changes weaken labour protections, they are designed to equip the economy with the tools needed for growth and provide more South Africans with meaningful employment opportunities. 

The Draft Code was published in the Government Gazette by Minister Nomakhosazana Meth for public comment in January this year. 

The department is currently collecting the received comments for the minister’s review before she publishes the amendments for implementation.

Unemployment in South Africa currently stands at 31.9%, and the department said the changes were developed with the involvement of organised labour and reflect a mutual commitment to addressing the economic crisis confronting millions of unemployed South Africans.  

“The Draft Code of Good Practice: Dismissal does not address employees who have been employed for three months or new job seekers, nor does it allow employers, including small businesses, to dismiss workers without a fair reason or procedure, regardless of how recently they were hired. While it allows flexibility in applying procedures to account for the limited resources of small businesses, it still requires that dismissals be based on legitimate reasons and that employees be treated fairly, given an opportunity to respond, and not dismissed arbitrarily,” said the department. 

The Code, according to the department, promotes fairness in all dismissals, with appropriate flexibility for small employers, without compromising the fundamental rights of workers. Any dismissal that is not based on a fair reason and conducted through a fair, even if simplified, process remains subject to challenge under labour law. 

The department added that the Code does not permit employers to dismiss someone simply because they do not like them or because they raise their voice for justice. 

It said the intention is to reduce unnecessary legal disputes over management decisions such as promotions, demotions, and benefits — areas already protected through collective agreements, contract law, and Employment Equity legislation. 

The department said workers would still be able to challenge unfair treatment, particularly where discrimination or breaches of agreement are involved.

“What is being removed is not protection, but confusion and duplication, allowing the CCMA and Labour Courts to prioritise serious labour violations. This creates a balanced labour framework that respects workers' dignity while ensuring that the system remains effective, accessible, and fair for all.

“The amendment to Section 77 introduces a 24-month validity period for certificates issued by the National Economic Development and Labour Council (NEDLAC) authorising protest action on socio-economic issues. This revision is both practical and progressive, ensuring that protest action remains relevant, justified, and reflective of current socio-economic realities. 

“A renewed referral to NEDLAC, after two years, helps ensure that protest actions are based on up-to-date information and genuinely reflect current worker and societal concerns.

“Previously, once a certificate was issued, it could be used indefinitely, regardless of how much time had passed or whether the issue had evolved,” said the department, adding that this practice weakened the legitimacy of protest actions and bypassed the vital role of NEDLAC as a platform for engagement and problem-solving, which promotes dialogues and the resolution of disputes.

The department said the amendment fosters accountability and reaffirms the value of constructive negotiation. 

“Critically, the right to engage in Section 77 protest remains untouched. Workers can still take action against socio-economic injustices. The only change is that this action must be rooted in recent efforts to resolve the issue through dialogue.”

manyane.manyane@inl.co.za