Legal Sector B-BBEE Code: State Outsourcing and Compliance Requirements

Posted 28 May 2025 Written by Acts Online
Category Justice

Brought to you by SA Legal Academy: The Department of Justice & Constitutional Development has highlighted the integration of the Legal Sector B-BBEE Code of Good Practice with state procurement policies for legal services.

In terms of the Broad-Based Black Economic Empowerment Act, No. 53 of 2003, the Legal Sector Code of Good Practice was gazetted in September 2024. This code serves as the primary regulatory framework for transformation within the profession and is intrinsically linked to the department’s policy on the outsourcing of state legal work, which was approved by Cabinet in November 2022.

The 2022 policy seeks to ensure the fair and transformational allocation of litigation services that the state cannot perform internally. Key areas of focus for practitioners include:

  • The alignment of annual turnover with specific B-BBEE compliance requirements;
  • The implementation of the state litigation strategy to drive transformation in briefing patterns; and
  • Compliance with community service obligations as a component of professional standing.

Regulatory Adjustments and Community Service

Regarding community service requirements under the Legal Practice Act, No. 28 of 2014, the department is currently reviewing the Community Service Regulations. These regulations, originally gazetted in October 2018 and subsequently amended in August 2023, govern the pro bono and service obligations of legal practitioners. The Deputy Minister indicated that the department is considering an increase to the ‘jurisdiction amount’ of R20,000, though the precise application of this threshold within the existing regulatory framework requires further clarification.

What this means for you, your business, or your clients

  • For yourself: You must ensure your individual B-BBEE status is verified against the September 2024 Sector Code to maintain eligibility for the state’s panel of practitioners and briefing opportunities.
  • For your business: Law firms must review their internal transformation targets and turnover reporting to ensure they meet the specific thresholds mandated for state litigation briefings under the 2022 policy.
  • For your clients: No direct compliance obligation; however, corporate clients should be aware that their legal service providers’ B-BBEE status may impact the firm’s ability to handle multi-party matters involving state entities.

Originally published at https://legalacademy.co.za/news/read/legal-sector-deputy-minister-draws-attention-to-b-bbee-code

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