The short answer
A dismissal in South Africa needs a fair reason and a fair procedure. Paying notice or severance does not make an unfair dismissal fair. Before ending employment, identify the reason, follow the appropriate process and calculate the separate amounts due.
Editorial source review: 9 September 2026. This guide explains the questions UK businesses should raise with their South African employer, HR team or adviser. It is general information, not advice on an individual dismissal.
Which dismissal process applies?
The Code of Good Practice: Dismissal, effective 4 September 2025, replaced the former Schedule 8 code and the separate operational-requirements code. Its approach depends on the circumstances, including the employer’s size and applicable collective agreements.
- Misconduct: investigate the concern, explain the allegations and allow a reasonable opportunity to prepare and respond, with appropriate assistance. A formal court-like hearing is not invariably required; fairness still matters.
- Poor performance: assess standards, guidance and a reasonable opportunity to improve. Hear the employee’s response before deciding.
- Ill health or injury: investigate capacity and alternatives, including possible adjustments or other work, rather than treating illness as misconduct.
- Operational requirements: consider a retrenchment process when the issue concerns the business’s needs rather than the employee’s conduct.
Probation is not permission to dismiss without a fair process. The code provides for guidance and an opportunity to make representations before dismissal or an extension. Read parts D–G of the code for the different processes.
How much notice is required?
For employees covered by the BCEA’s termination chapter, section 37 provides these general minimums. Check the contract and any applicable collective agreement before fixing a leaving date.
| Service | Minimum notice |
|---|---|
| Six months or less | One week |
| More than six months, but less than one year | Two weeks |
| One year or more | Four weeks |
Farm and domestic workers have a four-week minimum after more than six months. A collective agreement can reduce the general four-week period to at least two weeks. Notice is normally written; an employee cannot be required to give longer notice than the employer. The chapter excludes employees working fewer than 24 hours a month for that employer.
Section 38 permits payment instead of notice. Employer notice cannot run alongside annual leave; calculate any leave payment separately. Ending employment without notice requires a legally recognised basis. See BCEA sections 36–40, pages 21–22.
When is severance payable?
The statutory retrenchment minimum under section 41 is one week’s remuneration per completed year of continuous service. It is separate from notice, outstanding pay and leave entitlements. Remuneration is not necessarily basic salary alone. Check more favourable contractual or collective terms, earlier service and any offer of alternative employment: unreasonable refusal of an appropriate offer can remove the statutory entitlement. Section 41 also covers specified insolvency terminations.
A resignation or misconduct dismissal does not, simply because employment ends, create the statutory retrenchment entitlement. Other payments may still be due. The CCMA/BUSA explanation of employment terms covers severance, service and final payments.
Proposed change: the February 2026 draft Labour Law Amendment Bill proposes a higher severance minimum. The Department continued to describe the reforms as proposals still progressing in July 2026. This guide does not treat the proposed two-week rate as an enacted entitlement. Recheck commencement and transitional provisions before calculating a real termination payment.
Retrenchment: consult before deciding
A proposed redundancy needs an operational explanation and genuine consultation. Discuss alternatives, affected roles, timing, selection and proposed payments while the outcome is still open. The 2025 code’s part G and Annexure A explain the notice and consultation information. Larger retrenchments may engage section 189A’s additional procedures; do not assume a short, fixed timetable fits every employer.
Calling a performance dismissal “redundancy” does not cure an unfair reason. Equally, a disputed or disguised retrenchment is not automatically an automatically unfair dismissal: that is a specific legal category under section 187 of the Labour Relations Act. Have the actual reason and applicable procedure assessed.
What is the CCMA referral deadline?
An unfair-dismissal dispute generally must be referred within 30 days of dismissal or, if later, within 30 days of the employer’s final decision to dismiss or uphold the dismissal. Refer to the bargaining council with jurisdiction, or the CCMA if no council has jurisdiction. A late referral requires an application for condonation; acceptance is not automatic.
The CCMA/BUSA referral guide explains form LRA 7.11, service on the employer, proof of service and time calculation. Confirm the relevant dismissal date and deadline promptly rather than treating the period as 30 working days.
Conciliation seeks a resolution. If the dispute remains unresolved, the next route may be arbitration or the Labour Court, depending on the dispute. Some hearings combine conciliation and arbitration. Employers should route notices immediately to the responsible person, preserve records and prepare for the proceedings specified in the notice.
What remedies can follow an unfair dismissal?
LRA sections 193–194 provide for reinstatement, re-employment or compensation. Ordinary unfair-dismissal compensation is capped at 12 months’ remuneration; automatically unfair dismissal has a 24-month ceiling. These are statutory ceilings, not standard payouts or a complete cap on every possible liability. The appropriate remedy and amount depend on the case. Paying a settlement or notice is not a substitute for assessing fairness.
Who does what when an EOR is involved?
Start with the named employing entity and the actual working arrangement. An Employer of Record may administer the process, but the service agreement alone does not settle every question of employment liability. Ask a South African labour adviser to assess the arrangement and any client exposure. Agree responsibilities before making promises to the employee.
- UK manager: provide accurate, contemporaneous records and explain the business or performance concern. Avoid communicating a final outcome before the required process.
- Employing entity: identify the applicable procedure, coordinate employee communications and arrange final payroll and documents.
- Provider and client: agree who supplies witnesses, handles CCMA correspondence and funds advice, settlements and other costs under the contract.
- Qualified adviser: assess the reason, process, statutory obligations and any dispute; confirm who may represent the employer at each stage.
Use the EOR due-diligence worksheet to record the provider’s termination and dispute-support scope. If the person is described as a contractor, also review employment-status and misclassification questions.
Before the final working day
Ask the employer or payroll administrator for an itemised reconciliation: outstanding remuneration, notice arrangements, leave, any severance and other contractual amounts. Confirm the certificate of service required by BCEA section 42, necessary payroll records, equipment return and access handover. Keep operational security arrangements separate from assumptions about whether employment has lawfully ended.
If someone stops attending, investigate the circumstances and seek advice rather than recording an automatic resignation. If a mutual separation is proposed, obtain advice on its terms and voluntariness. Neither situation should be treated as a shortcut around the employee’s rights.
Sources and update history
Sources are linked beside the relevant explanations: BCEA sections 36–42, LRA sections 187–194, the September 2025 dismissal code and CCMA/BUSA guidance. The 2026 proposal is identified separately from the rules described above.
9 September 2026: updated the process explanations, notice boundaries, severance qualifications, referral deadline and EOR responsibility split; added direct source links and distinguished proposed reforms. This is an editorial source review. No external legal reviewer or provider-specific legal assurance is claimed.
Obtain advice from a South African labour-law practitioner before acting on an individual dismissal, retrenchment or settlement.
