TRANSFORMATION IN THE LEGAL PROFESSION - LEGAL SECTOR CODES APPROVED BY THE DTIC

The Department of Trade, Industry, and Competition (DTIC) recently approved the Legal Sector Codes (LSC), announced by Minister Parks Tau. This marks the conclusion of a process that began under the previous administration in collaboration with the DTIC, Department of Justice, and the Legal Practice Council, and follows the release of the Draft LSC for public comment in 2021. The LSC is aimed at accelerating transformation in the legal profession.

The LSC sets several ambitious targets. Key objectives include:

• Black ownership: 50% Black ownership and 25% Black women ownership over five years.
• Management control: 50% Black representation in executive roles and 25% Black women representation, focusing on equity partners and associates.

• Skills development: A target of 3.5% expenditure on training Black candidates. This will cover Black legal practitioners, junior advocates, and candidate practitioners, particularly targeting Black women, youth, people with disabilities, and individuals from rural areas.

• Preferential procurement: 60% procurement from Black-owned firms by the private sector and 80% from Black Legal Sector Measured Entities (LSMEs) by the public sector. This will be achieved through a specialized scorecard for complex legal services, ensuring equitable access for Black practitioners and the sustainability of LSMEs.

At this stage, the LSC has been approved but not yet gazetted. It is also unclear if there will be a transitional period, as the legal profession currently applies the provisions of the Generic Codes. The LSC is expected to provide a clear, structured approach to address the unique transformation needs of the legal sector, as well as ensuring fair access to opportunities in specialized areas of law. 

For more guidance on navigating the LSC and implementing BEE strategies, whether as a legal professional or stakeholder, Transcend offers support and advice.