Unlocking opportunities in the legal sector: The role of YES

The legal sector in South Africa plays a crucial role in upholding justice, promoting equality, and driving socio-economic transformation. To enhance inclusivity and promote black economic empowerment, the B-BBEE legal sector codes were officially promulgated on 20 September 2024. These codes introduce transformative updates, compelling law firms and advocates to adopt inclusive practices and invest in skills development and enterprise growth. Understanding these changes is vital, especially in exploring how the Youth Employment Service (YES) can assist legal sector companies in achieving their B-BBEE goals.

What is YES?

YES is the largest 12-month, full-time youth employment programme in the country. As a private sector led initiative, we address the country’s youth unemployment crisis by empowering businesses to create jobs for our unemployed youth. We’re youth-focused and business-led.

In return for creating youth jobs through YES, businesses in the legal sector can gain up to two level-ups on their B-BBEE scorecards.

Key updates in the legal sector codes

The legal sector codes apply to various legal practitioners and entities, including law firms and advocates choosing to be measured against the B-BBEE framework. These codes set several objectives including:

1. Increasing black representation:
   Law firms are required to focus on improving black representation, particularly in leadership and partnership roles. This aligns with the need for diverse and equitable workplaces.
2. Encouraging enterprise development:
   Law firms are encouraged to supporting black-owned legal practices through mentorship and financial assistance, to create valuable partnerships and new opportunities.
3. Enhancing skills development:
   Law firms are required to invest in training and development for black professionals, ensuring a sustainable talent pipeline.

Key requirements according to firm size:

Generic enterprises (GEs): Must comply with all priority elements, including ownership, skills development, and enterprise and supplier development (ESD).

Qualifying small enterprises (QSEs): Must comply with ownership as a compulsory element and choose between skills development or enterprise and supplier development.

Exempted medium enterprises (EMEs): Must comply with ownership but are fully exempt from other requirements.

Overview of key elements in the updated legal sector codes:

The revised legal sector codes emphasise the following critical changes:

• Ownership: A target of 50% black ownership within five years, with at least 25% owned by black women.
• Management: Increasing black representation in management to 50%, with a minimum of 25% for black women.
• Procurement: At least 60% of private-sector legal fees must go to black advocates, with state-procured services increasing to 80%.
• Skills development:       Law firms must allocate 3.5% of their annual leviable amount to training black practitioners.
• Legal sector transformation fund: Established to drive transformative initiatives.
• Legal sector charter council: Created to oversee compliance with the codes.

The role of YES

By partnering with YES to create youth jobs, law firms can enhance their B-BBEE score by up to two levels, as well as integrate into their EE/management representation targets, effectively aligning with the updated requirements under the legal sector codes.

There are two ways a business can participate in YES:

1. Internal youth placement: Law firms can integrate youth within their structures, equipping them with legal skills and fostering leadership pipelines, especially for black female candidates. This addresses the updated EE and management representation criteria, helping firms meet their goals for diversity and transformation.
2. YES turnkey solution: The turnkey solution allows businesses to place youth with 22 vetted host partners across South Africa. These host partners place youth in various high-impact sectors on behalf of the sponsoring corporate.

Sectors YES host partners work in:

• Green economy and renewables
• Drones
• Digital/global business support services
• Healthcare
• Education
• SMME support

Meaning business can create critical youth jobs in sectors that align with the Sustainable Development Goals (SDGs) and/or environmental, social and governance (ESG) strategies.

For legal entities, one of the greatest risks is failing to meet these employment equity (EE)/ and management representation targets, potentially losing points and dropping a level on their B-BBEE scorecard. With the legal sector codes changing, law firms face added pressure to maintain their B-BBEE levels, as the new codes don’t include a transition period. Law firms and advocates are required to act swiftly to comply with these updates to avoid disruptions and risks of non-compliance.

What’s more, in your first year of participation, if you register with YES and contract your youth before your financial year-end, you can receive your B-BBEE levels up within the same reporting period.

YES: A track record of excellence

YES has already proven itself to be one of the true innovators in South Africa. With over 1,812 corporate partners, YES has created more than 165,000 jobs for young South Africans, injecting R9,3 billion into the economy through YES Youth salaries. Beyond its B-BBEE incentives, YES provides legal-specific solutions that offer shared value to companies, communities, and the country.

By creating critical youth jobs through YES, businesses not only enhance their B-BBEE scores but also align with their EE strategies, contribute to socio-economic transformation, and support community growth and transformation.

YES fosters accountability and quality through a robust monitoring and evaluation (M&E) system. YES ensures that all youth thrive in secure and productive environments by implementing proactive and reactive measures. These measures provide valuable insights, enabling companies to maintain programme quality and accountability while driving tangible change in line with the updated legal sector codes.

Change youth lives. Elevate your scorecard. Say YES.

Want to learn more?
Contact our Business Development team at:
corporatesupport@yes4youth.co.za.