New code targets SA unemployment crisis

Recent amendments to the Code of Practice on Dismissals aims to address SA’s stubbornly high unemployment rate of 31,9 percent by simplifying procedures for the dismissal of workers. The code should reduce litigation and delays in dismissals by introducing less formal processes that the government hopes will lower hiring risks for employers.

The code 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, says a weekend statement by the Department of Employment and Labour (DEL).

Proposed amendments to the Labour Relations Act (LRA) agreed by Nedlac (National Economic Development and Labour Council) will see a new clause inserted allowing employers to dismiss workers provided they have been given a fair and reasonable opportunity to respond to the reasons for dismissal.

These reasons must be legitimate, but this new clause removes the adversarial and pre-dismissal arbitration requirement.

Dismissals are still deemed automatically unfair if they breach existing rights, such as for reasons of discrimination on the grounds of race, religion and gender, pregnancy or participating in a protected strike.

The code allows for less formal procedures for dismissals for all employers, especially small businesses, though this is not a free-for-all to get rid of unwanted workers and side-step the LRA’s Section 189 protections for retrenchments.

It does, however, allow for informal disciplinary processes when workplace rules are broken, says labour union the United Association of South Africa (Uasa).

The DEL is now preparing for the implementation of the proposed amendments once these have been presented to parliament. — Moneyweb.

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