Getting the basics of South African labour law right protects both your business and your employees, and the consequences of skipping them are more serious than most new employers expect.
1. A written contract of employment isn’t optional
A contract confirms the employment relationship and its terms, remuneration, hours, leave entitlement, and notice periods. Without one, either party struggles to prove the terms of employment if a dispute arises. Section 29 of the Basic Conditions of Employment Act requires employers to record certain particulars of employment in writing; failing to do so can result in a fine.
2. A workplace disciplinary code sets clear expectations
A disciplinary code lists categories of misconduct and how each will be treated, giving employees no room to claim ignorance if they’re disciplined. It must be fair: an unreasonable prescribed punishment is unfair even if it’s written into the code. You can still take disciplinary action without a formal code, but having one gives your process real substance and consistency.
3. Manage misconduct progressively, not punitively
Legislation requires a progressive approach: give an employee the opportunity to correct their behaviour before more serious consequences follow, except for misconduct serious enough to justify summary dismissal on a first offence. Failing to act consistently on misconduct tends to normalise the exact behaviour you’re trying to discourage.
4. Dismissal follows a specific, prescribed procedure
Whether a dismissal is for misconduct, operational requirements, or incapacity (poor performance or ill health), each type has its own required procedure. Following the correct one is what makes a dismissal fair.
5. Consistency and procedure both matter
Treating employees differently for the same misconduct, more severe discipline for one than another, renders the harsher outcome unfair, even if the underlying misconduct was genuinely serious. A dismissal can also be substantively fair but still procedurally unfair if you skip proper warnings or fail to hold a disciplinary hearing before dismissing someone. An employer that gets this wrong risks a CCMA award of up to 12 months’ remuneration for an unfairly dismissed employee.
Reform is under discussion, but not yet law
Proposed amendments to South Africa’s labour laws, including changes to severance pay calculations and dismissal remedies, were published for public comment in 2026 and remain under consideration. Confirm the current, enacted requirements directly with the Department of Employment and Labour before relying on any reported changes, since proposals under discussion are not yet the legal position.
Frequently asked questions
Can I discipline an employee without a written disciplinary code?
Yes, but a formal code gives your process far more substance and consistency, and reduces an employee’s ability to claim they didn’t understand the consequences.
What happens if I dismiss an employee without following the correct procedure?
The dismissal can be found procedurally unfair even if the underlying reason was valid, potentially resulting in a CCMA award against the business.
Is it legal to give one employee a harsher punishment than another for the same misconduct?
Generally no. Inconsistent treatment for the same misconduct is typically found unfair, regardless of what the disciplinary code allows.
Are the 2026 proposed labour law changes already in effect?
No. As of this update, proposed amendments remain under public consultation and are not yet enacted law. Confirm current requirements with the Department of Employment and Labour.
Compliance as protection, not paperwork
None of these requirements exist to make hiring harder, they exist to protect both sides of the employment relationship when something goes wrong. Getting the paperwork and process right upfront is far cheaper than fixing an unfair dismissal finding after the fact.
Further reading: Why Employers Lose CCMA Cases | Department of Employment and Labour for official labour law requirements
Originally published in May 2019. Updated September 2026 to confirm current requirements against the Basic Conditions of Employment Act and note pending 2026 reform proposals that are not yet law. Confirm current requirements directly with the Department of Employment and Labour before relying on this guide.
