Employing people
Is there an easy way to establish the status of our workers?
- The Employment Status Indicator (ESI) is a HMRC online interactive tool that asks you a series of questions about the working relationship between you and your worker. HMRC will accept the tool’s outcome as binding, as long as your answers accurately reflect the terms and conditions under which your worker provides their services. You must also retain a copy of the ESI result screen and the Enquiry Details screen showing your replies to the questions asked. We suggest you use this tool as part of your general picture building, not as a sole tool on its own.
Our new parish administrator says that they would like to be self-employed, is that ok?
- Just because someone says they are self-employed, it doesn’t mean that they are. Employment status is based on the key indicators shown in the section of the toolkit ‘Employment Status’. Each situation must be based on its own merits and assessment should be carried out for each person. You can use the Employment Status Indicator
Our office manager runs their own business at weekends. Can they be self-employed in our parish too?
- It would be possible for someone to be employed by the parish during the day but running their own separate business on the weekends. You should look at their parish role separately as they could well be in an employment situation. Use the Employment Status Indicator to assess the role.
What about my organist?
- The appointment of organists and Directors of Music is covered by Canon Law (Canon B20), contract law and as appropriate, employment law. The status of the working relationship between the organist and parish can be determined using the employment status indicator. In most cases, as there is generally a high degree of mutuality and control, you will find that the organist is an employee of the PCC. In terms of remuneration, there has been a tradition of describing payment to the organist as an honorarium. However, a true honorarium is a ‘one-off’ payment after the event to say thank you to someone, it is not usually pre-determined. Therefore, paying a regular sum of money each week or month (even where it is topped up occasionally with separate payments for weddings, funerals etc) is likely to be regarded as a ‘salary’ An employment tribunal case law (2008) suggests that tribunals take the view that most if not all organists are employees; even if the parties have explicitly agreed at the beginning of the working relationship that it is one of self-employment. Therefore, it is generally safest to establish an employment contract. The Law & Religion UK website has very useful guidance on the position of organists and musicians. The RSCM also has advice on employment and tax status which can be found here.
We run a bar and have a group of casual workers who work occasional shifts as and when required. They are self-employed and paid in cash, is that okay?
- You need to establish the facts. It is likely that they would not be self-employed owing to the obligation required when they are working but at the same time, the parish may not want to give them a regular contract. It may therefore, be appropriate to provide them with a casual worker/zero-hours contract on the PAYE system. Cash in hand is unlawful if no proper taxation records are kept.
We have three members of paid staff. What policies are we legally required to have in place?
- There are 3 policies legally required by employers - health and safety policy (legally required if have 5 or more members of staff), disciplinary and grievance policies. A data protection 'privacy notice' is also a legal requirement. Other policies which are not legally required however, would be best practice to have in place include GDPR, Equal Opportunities, Bullying and Harassment and Absence Management along with others.
A member of staff has been on a fixed-term contract for 3 years and it is coming to an end in two month's, are they entitled to a redundancy payment?
- The ending of a fixed-term contract counts as a statutory dismissal in law and as the individual has more than 6 months service (with effect from 1 January 2027) they are also protected under the unfair dismissal legislation. Therefore, we would recommend that you follow a standard fair dismissal/redundancy procedure for the position, which will include entitlement to a statutory payment if the person is made redundant. Further details about redundancy can be found on the ACAS website.
A member of staff has resigned but does not want to give their full contractual notice, can we insist that they do so?
- The duty to give notice is part of a contract of employment. If your employee doesn't give the right notice then that would be a breach of their contract. This can occur if the contract requires notice to be given in writing, but it was only given verbally or for example, if not enough notice (or none at all) is given. The practical response would be to sit down with the individual and try to negotiate with them. A claim in the courts for a breach of contract would cost the parish time and money, so trying to settle the issue informally would be the best solution.
Recruitment
Is it ok for me to ask a candidate if they have a disability or have experienced any long-term sickness?
- In most cases, the Equality Act 2010 makes it generally illegal to ask an individual about their health before you offer them a role.
- Exceptions may be if:
- You wish to find out whether any adjustments are required for the interview process
- You are monitoring applications for diversity and equal opportunity purposes
- You need to find out if an individual can carry out an intrinsic part of the role (for example, a care home assistant may need to be able to life and physically support patients)
In these cases, the questions need to be well thought through. It is better to request an occupational health assessment for an individual after you have offered them the role. The offer can be subject to the outcome of the health assessment. Further information about asking health related questions can be found here.
Can I request references before the interview?
- This is not recommended as it could make the process unfair. If you receive a detailed reference for one candidate but none or very little for another, it could mean that you are making a judgement based on unequal information. The lack of detail in the reference is not generally a reflection on an individual as nowadays employers give very little information in a reference. Most companies now only provide job titles and dates of employment. We would normally advise that you only request references for your ideal candidate once you have conditionally offered them the role.
I would like to employ a member of our PCC to do some bookkeeping for a few hours a week. Is this ok?
- We would always recommend that parishes think carefully before employing a trustee or even someone who worships in their congregation. Whilst the employment would likely work well; we do often hear of situations where it isn't working which can mean there is not only the employment relationship to rectify but it also creates issues pastorally. The Charity Commission does have guidelines relating to employing Trustees. The PCC's governing documents (The Church Representation Rules and The Parochial Church Councils (Powers) Measure 1956) do not normally allow trustees to be paid, so the PCC would need to apply to the Charity Commission for permission before employing the individual. More information on governing of documents for PCCs can be found here.