Following extensive deliberations among stakeholders since 2020, the revisions to the Legal Sector Code are progressing towards a pivotal phase that could significantly affect the legal industry. The gazetting of this Code is now imminent. These changes will impact the Government, Private Sector Practitioners, The Legal Aid SA and University Law Clinics.
By February 2024, the Steering Committee, along with several organisations, filed a court application to compel the DTIC Minister to gazette the LSC. The Minister opposed the action and requested further consultation, which occurred on June 7, 2024.
After much deliberation and discussion, the Legal Sector Code has been resubmitted to the Minster, after a few minor amendments were agreed upon on Wednesday, 19 June 2024. The Steering Committee has undertaken to continue to communicate with the DTIC to secure the gazetting of the LSC.
Let’s examine the concerns that were previously raised:
- The new set of Codes does not provide for a transition period and will come into effect immediately after it has been gazetted.
- Legal Firms who used Exemption Affidavits in the past could be affected and will need to plan accordingly.
- Thresholds that determine the use of an Affidavit will change significantly:
- Attorneys with an Annual Turnover of R 0 – R3 million and/ or 1 – 3 Partners/ Directors will be exempted, and an Affidavit will still be sufficient. The Procurement Recognition Level of the Affidavit will vary however:
- Level 1: 100% Black or 51% Black Women Owned Firms.
- Level 4: Less than 51% Black Owned Firms.
- Level 5: Less than 35% Black Owned Firms.
- Advocates with an Annual Turnover of R 0 – 3 million and who have practiced for less than 3 years will also be exempted. A Black Advocate will qualify as a Level 1 Contributor and a White Advocate will be seen as a Level 4 Contributor.
- Attorneys and Advocates with an Annual Turnover of R 3 million to R 15 million will be seen as QSE’s and measured accordingly.
- Attorneys with an Annual Turnover of R 0 – R3 million and/ or 1 – 3 Partners/ Directors will be exempted, and an Affidavit will still be sufficient. The Procurement Recognition Level of the Affidavit will vary however:
- It will be possible to enhance these levels by contributing to the Legal Sector Transformation Fund, or by contributing to Skills Development or Socio-Economic Development (Targets will apply).
Should you have any questions or require further clarification regarding the amendments and their implementation, please do not hesitate to reach out to our office at consult@beeanalyst.co.za.
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Assessment Quality Partner
Mahlomola Jonas Mpoka
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