South Africa: Termination of employment

by Helen Wilsenach and Pascale Towers, Bowmans

In South Africa, employment law does not recognise the concept of the termination of an employee’s employment “without cause” or “at will,” and the employer is always required to act fairly in both substantive and procedural terms when terminating a contract

Summary

• Employment law does not recognise the concept of the termination of an employee’s employment “without cause” or “at will”, and the employer is always required to act fairly in both substantive and procedural terms when terminating a contract.
• Except in the limited circumstances justifying summary dismissal, employers are required to give employees notice of termination of their contract.
• As a general rule, termination without notice – that is, summary dismissal – is permissible only if the employee is in material breach of the employment contract.
• The “Code of Good Practice: Dismissal” contains guidance on fair dismissal procedures for misconduct.
• The “Code of Good Practice: Dismissal” contains guidance on fair dismissal procedures for poor work performance.
• The “Code of Good Practice: Dismissal” contains guidance on fair dismissal procedures for incapacity arising from ill health or injury.
• The “Code of Good Practice: Dismissal” provides guidance in relation to redundancies.
• In most cases of termination of contract, employees have no statutory entitlement to a severance payment from the employer.
• There is no general or normal retirement age applicable to all employees.
• Legislation provides that all employees have the right not to be unfairly dismissed, and specifies what constitutes an unfair dismissal.

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