labour courts tend to favor the employee if due process wasn’t followed. The risk? An unfair dismissal ruling could result in the company being required to pay up to 12 months’ salary in compensation. Add legal costs and reputational risk, and it’s a situation every employer should be eager to avoid. That’s why international companies must treat termination with as much care as hiring, especially in regulated markets like South Africa. What About Poor Fit, Not Poor Performance? Sometimes, the issue isn’t performance, it’s misalignment. The team isn’t clicking. The work
at least 10 days before the probation end date. Why? Because legally, the employee is owed notice pay and accrued leave once probation ends. Miss that window, and you could end up paying an extra month’s salary simply due to process delay. When it’s time to terminate, the EOR partner will issue the formal notice, citing the probation clause and enclosing supporting documentation. After Probation: Things Get Even More Serious If termination is considered after the probationary period has lapsed, the requirements are more stringent. First, we return to the three-session counselling process, this time, even more critical. These must be focused on: Specific performance metrics Goals not met Support or accommodations offered Then, if the employee is still underperforming, the EOR
partner must lead a formal performance inquiry hearing. This hearing must include: An independent chairperson (not from the client company) The opportunity for the employee to respond or dispute the concerns Legal representation, if the employee requests it Only after this process can we issue a termination notice, and even then, only in accordance with the notice period defined in the employee’s contract. Improper Dismissal Is Expensive - And Brand- Damaging A dismissal that doesn’t follow the correct legal and procedural steps can be challenged at the CCMA, and South African
Unless poor performance can be demonstrated and documented (or gross misconduct occurs), you’re limited in how you can end employment lawfully.
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ISSUE 13 GLOBAL PAYROLL MAGAZINE
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