The Pretoria High Court has reviewed and set aside the decision to promulgate South Africa’s Legal Sector Code, bringing an important change to the BEE landscape for legal firms.
The Legal Sector Code was gazetted in September 2024 and introduced sector-specific BEE requirements for the legal profession. However, four major law firms — Deneys, Bowmans, Webber Wentzel and Werksmans — together with Solidariteit, challenged the Minister’s decision to promulgate the Code.
What did the Court decide?
The Court found that Minister of Trade, Industry and Competition Parks Tau had not exercised the independent judgment required when deciding to publish the Legal Sector Code.
The Court therefore set aside the Minister’s decision and remitted the matter back to the Minister for reconsideration.
Importantly, the Court did not rule on whether the Legal Sector Code itself was constitutional, lawful or substantively justified. Those questions remain open should the matter be reconsidered or a new Code be promulgated.
What does this mean for law firms?
For now, the Legal Sector Code is no longer operational, and the Generic Codes of Good Practice continue to apply to legal firms for BEE purposes.
This means legal firms should ensure that they understand the requirements applicable to them under the Generic Codes and are prepared for their next BEE assessment.
The position may change depending on the Minister’s reconsideration and any future developments regarding a sector-specific Legal Sector Code.
What should legal firms do now?
The outcome provides some clarity, but it is important not to put BEE planning on hold.
Legal firms should:
- Review their current BEE position
Understand how the Generic Codes apply to your business. - Check your current evidence and documentation
Make sure your supporting documents are up to date and ready for verification. - Review your transformation strategy
Identify areas where your business can continue making meaningful progress. - Stay informed
The Minister’s reconsideration could result in further developments for the legal sector.
Need guidance on your BEE position?
BEE Analyst can help your business understand the requirements that apply to you and navigate your BEE journey.
Contact BEE Analyst for practical BEE guidance and support.
Contact: Jaco Jacobs
Office: 012 997 0037
E-mail: consult@beeanalyst.co.za
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