Although charities have distinct differences to a traditional commercial business, they also share many similarities; especially when you enter the realm of employing members of staff, which means you step into the realm of employment law. For charities, managing trustees and volunteers, as well as employed staff and contractors requires even greater diligence and care.
We know how overwhelming it can feel once the reality of managing staff sets in, with and the added resource and attention that requires. This article should help you gain understanding around employment law.
Why is it important?
In this day and age, employees are well informed of their rights and what they can do if they aren’t fulfilled, so please don’t ignore them; you’ll make it harder for everyone in the long run. Consider the reputational damage your charity could face should an employee dispute end up going through the courts, and the criticism in the media.
All of this could result in loss of trust, credibility and revenue, which could have a devastating effect on the future of your organisation.
What can you do?
Provide a contract that completely and accurately reflects the employees defined roles and responsibilities from the moment they are hired. It is important to define from the outset the nature of the contractual relationship – is this person an employee, contractor or supplier? Although the work may be the same, taxation and eligibility to sick pay, holiday pay and severance pay will be different.
If the role changes over time, make sure you update their contract to reflect the revised responsibilities and expectations, that is mutually agreed upon. Taking the time to ensure that contracts and policies are clear and easily accessible and providing training for their role is a wise investment.
Discrimination - Never assume!
You must take the time to understand, define, and prevent discrimination within your organisation. It’s vital to ensure your recruitment and interview processes are designed and delivered with care to be fair and free of bias.
Ensuring your staff have a thorough understanding of what discrimination is – so they can be clear on exactly what is and isn’t acceptable in the workplace, will make for a far more tolerant environment and a strong defence if anything goes awry.
Prevention is always better than cure
Proper training goes a long way when it comes to prevention, especially for sensitive areas such as whistleblowing. The law protects employees who speak out to expose what they see as wrongdoing, so you need to ensure they have a safe environment to do so, with clear instructions on the process, and that they won’t be penalised for it.
Creating a safe environment for whistleblowing will create a sense of security with your staff and volunteers, which is exactly how someone should feel at work.
Handling disputes
Your HR practices for handling disputes should be as strong as possible. The faster and more effectively you can handle them, the less likely they are to escalate.
Of course, we would all like to believe that our teams will always work together harmoniously, especially in a charity where you’re all passionate about the same cause, but that’s just not the reality. We’ve heard of trustees claiming against each other over disputes in the boardroom – so this is definitely something you’ll need to consider whilst things are good; your risk will inevitably increase as your charity grows.
Act now
Every member of staff, trustee, volunteer will have varying needs and rights as protected by the law, it’s your job as an employer to ensure they are taken seriously.
The DAS helpline is a key phone number to keep to hand, it’s there to provide 24-hour advice on any legal problem (though please remember it’ll be ‘general help’ and does not extend to writing letters for the client on specific problems.) There is also the DAS Employment Manual which you may find helpful.
Get adequate cover
It’s worth speaking to your insurance broker about Employer’s Liability (EL), and Employment Practices Liability (EPL) insurance. As an employer, you are legally obliged to have EL cover as protection for compensation costs and legal fees if an employee or ex-employee sues for illness or injury caused by their work. EPL protection is not obligatory; it typically covers defence costs in employment tribunals, settlements and awards - such as legal expenses incurred as a result of an employee dismissal, as an example. Make sure you speak to a specialist insurance broker who understands your circumstances so they can help you get the best cover, without under or over insuring you, so you get the absolute most out of your charity’s budget.
It’s a priceless investment in the future of your charity and everything it’ll achieve in the future. It’s much better to handle these sensitive subjects when things are good, than have to figure them out in the moment.
Sarah Cox is the managing director of charity and faith insurance specialist, Ansvar, the sponsors of this piece
Related Articles
Sarah Cox: How to create a robust risk register for your charity
Sarah Cox from Ansvar explains why having a risk register for your charity is so important, and offers advice on how to create one
Sarah Cox: How to create a business continuity plan
Sarah Cox from Ansvar offers some advice on creating a business continuity plan so that if there is a disaster your charity can get back up and running quickly
Sarah Cox: Virtual fundraising during a pandemic
Sarah Cox from Ansvar, an insurance company owned by a charity, explores how to keep up fundraising efforts during this (hopefully!) once in a lifetime event
