South Africa’s largest law firms — Webber Wentzel, Bowmans and Werksmans — are set to present their challenge against the B-BBEE Legal Sector Code of Good Practice in the Gauteng High Court next month. The firms argue that the code imposes impractical and, in some instances, unlawful transformation targets. The matter is scheduled to be heard between 4 and 8 May.
The code, published in September 2024, requires law firms to increase black ownership and voting rights from 25 per cent to 50 per cent over five years to achieve the highest BEE rating. In a joint statement, the firms said the code is both unlawful and unworkable, warning that it could undermine rather than advance meaningful broad-based transformation in the legal profession.
The firms were previously part of a legal challenge led by Norton Rose Fulbright, which sought to interdict and suspend the code in January. That application was later withdrawn in exchange for an expedited court date to argue the merits of the case.
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A central concern raised by the firms is the uneven application of the code. They note that 95 per cent of law firms with one to three partners are exempt, meaning the stricter requirements apply to fewer than 5 per cent of firms. This, they argue, places a disproportionate burden on a small group of large firms. Data from the Legal Practice Council suggests that only around 60 firms nationwide fall into this category.
The firms also contend that the government disregarded recommendations from a technical committee, which had proposed a more gradual increase in black ownership of 5 per cent over two years. Instead, the final code mandates a 10 per cent increase every two years. According to the firms, these targets lack a clear evidentiary basis and are not practically achievable given the partnership structures typical of large law firms.
They argue that ownership changes in partnerships require agreement among partners and often involve complex financial restructuring. As a result, rapid ownership adjustments are difficult to implement within the required timeframe.
Further criticism centres on the code’s treatment of skills development initiatives. The firms say the new framework fails to recognise contributions such as bursaries for black students, training for people with disabilities, and vacation work programmes. Collectively, they provided 52 bursaries worth an estimated R4.5 million in the past financial year.
Under the previous legal sector code, such contributions counted towards skills development scores. The firms argue that their exclusion under the new code represents a regression that undermines existing transformation efforts.
The firms are seeking to have the code set aside and to revert to the Generic BEE Code while a revised sector-specific framework is developed. Bowmans senior partner Ezra Davids, speaking on behalf of the firms, said they support meaningful transformation and believe a properly structured code can build on progress already made in the sector.
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He added that the objective is to help shape a framework that is evidence-based, practical and inclusive, and that the firms remain committed to engaging with government and other stakeholders.
Under the previous code, all three firms held a Level 1 B-BBEE rating. Under the new framework, their ratings are expected to fall to Level 6 or lower, significantly affecting their ability to secure public sector work.
Government tenders and state-owned entity contracts typically require a minimum BEE level of 4 or higher. Industry estimates suggest that public sector work accounts for between 15 and 20 per cent of revenue for large corporate law firms, meaning a downgrade could materially impact earnings.
The case has drawn attention from other professional services sectors, including accounting and engineering, which are engaged in similar discussions with the Department of Trade, Industry and Competition. Analysts say the outcome could set an important precedent for how sector codes are developed across the economy.
The department has yet to file responding papers but is expected to defend the code as a necessary tool to accelerate transformation in a profession that remains largely white and male at senior levels. According to the Legal Practice Council’s 2025 survey, black partners make up about 18 per cent of partnerships at large firms, up from 12 per cent in 2018.
The court is expected to deliver judgment by late June.
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