Employment law can be a minefield for any organisation. For registered charities, employment has an often complex legal framework. Charities have unique values, structures and missions that require bespoke legal approaches. Whether it’s drafting employee contracts, performance management, managing redundancies and employment disputes, or addressing safeguarding policies, charities must strike the right balance between their charitable objective and the law.
This post will give charity managers, HR professionals and nonprofit leaders a clear understanding of what charity law issues they may face when handling employment issues and how expert employment advice from Darwin Gray LLP can help.
Why Employment Law Advice is Vital for Charities
Charities operate in a world where purpose comes before profit. But that doesn’t mean they’re exempt from employment law. A charity’s employees face even more scrutiny because of their public-facing roles and responsibilities. Proper legal advice means compliance, reduces the risk of disputes and helps charities uphold their values within the law.
Key areas where you need legal support include basic compliance, drafting contracts, disciplinary procedures, equality policies and safeguarding. Here’s a closer look at these essential areas and how charities can tackle them.
Basic Compliance
The foundation of any charity’s employment practices is meeting compliance obligations. Areas to focus on are:
- Minimum Wage: You must comply with the National Minimum Wage and National Living Wage and ensure employees get the appropriate pay. The National Minimum wage is set to rise to £12.21 in April 2025.
- Holiday Pay, Sickness, and Flexible Working: Have transparent policies regarding holiday pay, flexible working, and sickness absences. Employees should have access to these policies, and they should be outlined in their contracts to avoid employee relations issues and workplace disputes. If you choose to reward loyal employees with pay rises or additional benefits, their contracts should be updated to reflect the changes.
- Documentation: Keep clear records and appropriate documentation, including signed employment contracts, proof of right to work and employment status, and payslips for all the charity’s employees.
Failure to follow basic compliance can result in significant financial penalties and damage to reputation. Regular audits and training can help prevent mistakes.
Contract Drafting
Good contracts are the backbone of a healthy working relationship and should be agreed upon when a new employee begins their role. For charities, this means drafting contracts for diverse roles, including full and part-time staff and temporary workers. Key considerations for many charitable employers are:
- Standard Provisions: Each contract should clearly outline job responsibilities, working hours, salary and benefits.
- Clarity and Flexibility: Contracts should cover specific roles within the charity while aligning with the law. For example, fundraising managers may need unique clauses around working hours or confidentiality.
Disciplinary and Grievance Processes
By having contracts that are legally sound and role-specific, charities can avoid misunderstandings and disputes. Managing employee issues fairly and transparently is key to a positive work culture. Because of the public scrutiny charities often face, performance issues relating to employees can have far-reaching consequences. Charities must have formal processes in place to handle grievances and disputes effectively that are compliant and reflect their values.
- Developing Grievance Policies: Create clear guidelines for disciplinary or performance issues or grievances to treat all employees fairly.
- Safeguarding Issues: Address safeguarding concerns promptly and include measures to protect vulnerable individuals.
Well-structured disciplinary and grievance procedures ensure compliance and demonstrate your charity’s commitment to fairness and integrity.
Redundancy
Financial difficulties or changes in funding often force charities to consider redundancies. Though tough, proper redundancy management can reduce legal risks and preserve employee morale.
- Consultation: Engage staff and unions (where applicable) throughout the process.
- Legal Requirements: Follow proper notice periods, attend employment tribunals (where applicable) and ensure redundancy payments are calculated correctly.
Clear communication and empathy are key when navigating this sensitive area in the charity sector.
Discrimination and Equality
Charities must uphold equality and diversity standards and comply with the Equality Act 2010. Consider:
- Preventing Discrimination: Have policies to prevent discrimination based on protected characteristics such as age, gender or disability.
- Handling Complaints: Establish robust processes for investigating and dealing with discrimination claims.
Promoting inclusion within your charity builds a good reputation and compliance with the law.
Safeguarding
Many charities work with children or vulnerable individuals, so safeguarding is top of the list.
- Policies and Training: Have safeguarding policies and train all staff and volunteers.
- Regular Reviews: Review procedures regularly to ensure they are effective and compliant with the law.
Failing to safeguard those in your care not only risks legal consequences but could also damage your charity’s mission and reputation.
Volunteer Management
Volunteers are part of the charity sector. But it’s important to distinguish between volunteers and employees to ensure legal clarity.
- Volunteer Agreements: Draft agreements outlining expectations without implying an employment relationship.
- Recognition and Support: While volunteers are unpaid, offer training and recognition to maintain good relations.
By managing volunteers transparently and thoughtfully, charities can avoid potential misunderstandings or legal issues.
Mergers and Acquisitions
Charity mergers must consider employment law implications, including TUPE (Transfer of Undertakings (Protection of Employment)) regulations.
- TUPE: Protect employees’ rights during organisational changes.
- Smooth Transitions: Plan and communicate with staff to manage terms of employment and a seamless integration.
Legal advice is key to navigating the complexities of mergers, avoiding undue risks posed by these changes, and protecting staff and the charity’s values.
Keeping Up to Date with the Law
The law changes frequently, and charities must stay informed. Charities should get regular updates on relevant legislative changes and update their policies accordingly. Darwin Gray LLP also offers bespoke training to keep organisations up to date with the latest requirements.
How Darwin Gray LLP Can Support Charities
At Darwin Gray LLP, we specialise in helping our charity clients manage employees and provide a positive working environment with expert legal advice tailored to their needs. Here’s what sets us apart:
- Sector Experience: We have years of experience working with charities and understand the challenges they face.
- Comprehensive Support: From contract drafting and safeguarding policies to TUPE advice during mergers, our team can help with all employment law matters.
- Flexible Pricing: We know the budget pressures charities face and offer flexible pricing to suit different needs.
- Personalised Service: We take the time to understand your charity’s mission, values and operational goals to provide bespoke advice.
Whether you need ongoing support or help with a specific issue, Darwin Gray LLP is just a phone call or email away.
Conclusion
Employment law is a complex and changing landscape, but with the right advice, your charity can balance compliance with its values. From safeguarding policies to redundancies, each area is an opportunity to build a stronger, more resilient organisation.
Ready to take the guesswork out of employment law? Contact Darwin Gray Solicitors today for expert, reliable and tailored legal advice that enables your charity to flourish.
