EP22: The New Labour Code: What Every Business Owner Needs to Know in 2025

In this episode of The Rev Room, Francois sits down with 

Juliana van der Mervwe, Labour Law Team Lead at Labournet, to unpack the major updates to South Africa’s Code of Good Practice - from parental leave reform to new operational dismissal procedures. Together they explore what these changes mean for business owners, why progressive discipline still matters, and how compliance can actually strengthen company culture.

It’s a practical, insight-rich discussion designed to help founders and executives stay ahead of risk, align with new labour legislation, and create workplaces built on fairness, structure, and trust.

💡 KEY TAKEAWAYS

1. Labour compliance is leadership. Staying informed isn’t just legal—it’s cultural. It builds safety, trust, and accountability inside your business.
2. Progressive discipline protects both sides. Updated codes reinforce structure and clarity, reducing costly arbitration outcomes.
3. Policy reviews are no longer optional. The new parental-leave and retrenchment guidelines demand updated contracts, notices, and internal procedures.

Connect with Labournet - Here

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Let’s build better, together.

Transcript

hi there
and welcome to the Rev Room powered by Bizrev Advisory
I'm Francois
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let's get into it
alright so welcome Juliana
uh welcome to the Rev Room
like to tell the viewers what your position is
and what do you do at Labnet
okay perfect
so hi everyone my name is Juliana Fernandez
and I've been with labnet for six years now
currently a consulting labour law team lead
so basically it's very long
I know but basically
what it means is I take care of an entire team
and we specifically focus on labour law compliance
so to making sure all our clients are compliant
with contracts policies
procedures running disciplinary procedures
whatever you might need or yeah
that's a lot ha ha
so it sounds a very important job you got to the honor
yeah and I really enjoy it I have an awesome team
we um I'm actually from Cape Town
so I managed the team on that side
but also in George and I absolutely love my job
I mean everyday is a challenge
and I think why I say that is because
no day is ever the same so every single day
you don't know if the client phones you what
what's gonna be on the other end of the line
what's the questions that they're gonna ask um
and I I really
really like working in an environment where I can
think on my feet
and I can help people to solve problems wow
that's quite different
it's and it seems quite a lot of pressure for you
is it yeah
I guess you can say it's a very big responsibility
I think that's the right word
not a lot of pressure
but it's a big responsibility because the clients
they put all their trust in us
to make sure
if something is either referred to the bargaining
council or C C m
a that they've ticked all the boxes and
and that there is no adverse arbitration awards
or no losses on their end
got it okay
yeah so it's a big responsibility
but but I mean you
you you either born for it or you're not okay
and you seem to be born for it
Ja no
definitely there's there's no questions on that okay
great so and so you mitigate risk basically everyday
yeah and ensure compliance
so whatever we do is we ensure compliance
and we mitigate risk as far as possible
but if you've already made a mistake
then we'll still help you out to like you said
to mitigate it cool
to mitigate it a little bit further or yeah
or limit the risk yeah
at least cool
so Juliana that's great
I'd love I'd love the energy
I love the fact that you love your job
which is really great
cause it is your second home or your first home almost
sometimes no
I think it's my first home
thanks for being honest
so a lot is changing in our landscape in South Africa
loads of things are changing
and so tell us a little bit about what's changing
in the labour space
so the changes that I've mentioned like I said
the code of Good Practice Schedule 8
more specifically
sets out your procedures that you require to follow
before you dismiss an employee okay
so it normally stipulates
progressive discipline should be applied
meaning you need to issue one
you need to follow a fair procedure
notice representative and all of that
usually
the code only made provision for dismissals based on
misconduct so that's your disciplinary hearings
and your dismissals based on incapacity for ill health
yep or performance
which is your poor work performance
but now the updated code actually
includes operational requirements as well
so it's always been in legislation
but it sets out nice
guidelines
for employers to make sure that they still comply
with section 1 8
9 of the Labour Relations Act
in terms of dismissing employees for
operational requirements
further to that
the new code also gives us a template version
I almost wanna say
of your Section 1 notice of intention to retrench
so companies can now use one template
instead of drafting their own templates
or in some cases some companies
might not even be aware of the fact that they require
to draft notices
so this code sets that out
and it really guides employers on what to do with that
the one other change that came into effect
is that of the parental leave
so we used to have four months maternity leave
unpaid for the mother
and then the 10 days consecutively
and we obviously had the adoption and commissioning
parents leave now they've changed it completely
um they've made it four months and 10 days
if two parents are both employed
either by different employers or the same employer
so if we were to have a child
it's four months 10 days between the two of us
we can split it
I can take the entire four months and 10 days
whatever the parties agree to
and then if you are the only parent
working in that specific relationship
then you will become entitled to four months
so I think
companies just needs to make sure they update policies
they review their contracts
they update their contracts as well
because it's something
that the department of Labour will look out for
when they conduct their audits
that's big so you now have to go and read
go and change everything basically
yeah wow okay
yeah wow okay
yeah perfect
and it sounds quite reasonable
it sounds like it's a good thought out process
so they've actually considered it for quite some time
I know it was referred to the Constitutional Court
quite some time ago but we only got the ruling
or they only issued the ruling on the 3rd of October
I do understand the principle behind it
it's just to make sure because in some instances
the mother might be earning a higher income or yeah
so I understand the circumstances around it
and the rationale as to why they've made the decision
and I think it's just moving with the times
and then the other change is
it now makes provision
for a topic that we also deal with quite often
and that is imprisonment
so what to do if your employee is in jail
um the code
now makes provision
in terms of how to deal with an employee
that's imprisonment so it's part of an incapacity
but it sets that up that procedure
and then a common question that we also get often is
incompatibility so basically
when an employee doesn't really fit
within your culture how do you get rid of that person
so
there's no element of misconduct that you can focus on
but it's more cultural problem
then you focus on incompatibility incapacity
and this code sets out an incompatibility incapacity
what the requirements are
as well as the procedures to follow
so I think that updated the quote code
sorry quite a bit to help
employees and guide them a little bit more
that's actually quite great cause I mean
being in the space
in the entrepreneurial space for years
I mean we've
most guys don't actually understand
what's happening from the labour perspective
and it's a hit and miss
unless someone has employed the likes of Labour net
yeah to look after them yeah
so but I mean having a fourth thought in my opinion
if if if the legislation has now made provision for a
a cookie cut template it actually sounds great
it does it does
but obviously I still think it's important
that companies put their own kind of
identity to it
and not just use the blanket approach in terms of okay
this is the template
because remember every retrenchment
and I'm just using retrenchment as an excuse
or as an example now yeah
but every retrenchment will have a different rationale
okay
so you still gonna be required to draft that Section 1
8 9 notice okay
in a way that is in alignment with the
the rational behind the retrenchment um
your alternatives
will be different from another company
so yes sets out the guide
but I still think you need that touch
just to make sure
that it's in alignment with your requirements
got it so they need the lab
the lab in it touch they still need the lab in it
the lab in it touch definitely
definitely got it cool
that sounds great and so if you
if if one of our listeners
I want you to reach out to lab in it or to talk about
you know a
a a service and or a assistance in this regard
yes please
yeah they can contact us um
we can probably share our contact details
but happy yeah
we will help them all the way
and I also think it's a great opportunity
because the code of good practice
also refers to progressive discipline okay
and the importance of applying progressive discipline
before you really dismiss an employee um
obviously in some certain or in take a break
in some scenarios
you would have an immediate dismissal for like theft
fraud those serious types of cases yes
but in other instances for example
poor time keeping or unauthorized absence
the code really emphasises the importance
of applying progressive discipline
so I think it's a good opportunity for companies
to also just review the disciplinary code
make sure you are applying
progressive discipline in areas
where you supposed to
but also that you're quite strict
in terms of your harassment cases
or fraud dishonesty
those type of cases and obviously
late night can assist with reviewing
your disciplinary code as well
so win win yeah
definitely cool Juliana
thanks for joining us on the Red Room
we really appreciate your time and your valuable input
we'll definitely have you on a on the Red Room again
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