HR Support for Charitable Organisations
From managing limited budgets and volunteer relationships to navigating trustee obligations and funding-dependent restructuring, we provide specialist HR support designed for charities and non-profit organisations.
Book a Free ConsultationWhy Charities Need Specialist HR Support
Charities and non-profit organisations face many of the same employment law obligations as any other employer, but they operate under unique pressures that make HR particularly challenging. Your funding is often time-limited, project-based, or dependent on grants and contracts that can be withdrawn at short notice. This creates a workforce that may include a mix of permanent staff, fixed-term employees funded by specific grants, part-time workers, sessional staff, and volunteers, each with different legal status and obligations. When a funding stream ends, you may need to restructure or make redundancies quickly, often with limited reserves to fund the process.
The voluntary sector also has specific governance requirements that affect HR decisions. Trustees have a legal duty under the Charities Act 2011 to act in the best interests of the charity and to manage its resources responsibly. This includes employment decisions: overpaying staff relative to the sector, failing to address underperformance, or mishandling a dismissal that leads to a tribunal award all represent a misuse of charitable funds. At the same time, charities often struggle to compete with private sector salaries, making recruitment and retention harder. You need HR practices that are legally compliant, proportionate to your resources, and aligned with your charitable objects.
At Rebox HR, we work with charities, social enterprises, community interest companies, and other non-profit organisations across the Midlands and beyond. We understand the practical realities of the sector: limited HR budgets, complex workforce structures, the importance of values-led management, and the need to demonstrate good governance to funders, regulators, and the public. We help you build employment contracts and policies that reflect your charitable status, manage disciplinary and grievance processes fairly, handle restructuring when funding changes, and support your managers to lead their teams effectively within the resources available to them.
HR Challenges in Charitable Organisations
Every sector has its unique HR pressures. Here are the challenges we help charitable organisations businesses overcome.
Limited Budgets and Resource Constraints
Charities typically operate with tighter margins than commercial businesses, and HR is often under-resourced. You may not have a dedicated HR function, leaving employment decisions to managers, trustees, or administrators who lack specialist knowledge. Getting HR wrong is expensive for any organisation, but for a charity, a tribunal award or a costly settlement comes directly out of funds that should be supporting your beneficiaries. We provide affordable, proportionate HR support that helps you manage employment risk without stretching your budget beyond what is sustainable.
Volunteer and Employee Distinctions
Many charities rely heavily on volunteers alongside paid staff, and the legal distinction between the two is critical. Volunteers are not employees and do not have employment rights, but if the arrangement starts to look like employment (regular hours, obligation to attend, payment beyond genuine expenses), a tribunal may reclassify the relationship. This can result in claims for minimum wage, holiday pay, and unfair dismissal protection. We help you structure volunteer agreements and working arrangements that maintain the correct legal status and protect your charity from unexpected liabilities.
Trustee Governance and Obligations
Charity trustees have a fiduciary duty to manage the organisation's resources in the best interests of its beneficiaries. This extends to employment decisions: approving pay levels, authorising redundancy programmes, and overseeing major HR changes. The Charity Commission expects trustees to demonstrate good governance, and poor employment practices can attract regulatory scrutiny. We help trustees understand their HR responsibilities, make informed decisions about staffing, and ensure the charity meets its legal obligations as an employer.
Safeguarding Responsibilities
Many charities work with vulnerable adults, children, or people in positions of dependency. The Safeguarding Vulnerable Groups Act 2006 applies to charities just as it does to healthcare and education providers. You need robust recruitment processes (including enhanced DBS checks for regulated activity), clear safeguarding policies, and a proper procedure for handling concerns and making DBS referrals when required. We ensure your safeguarding framework meets legal requirements and sector best practice.
Funding-Dependent Restructuring
When a grant ends, a contract is not renewed, or a major donor withdraws support, charities often need to restructure quickly. This can mean redundancies, changes to terms and conditions, or the closure of entire projects or services. The legal process for redundancy and restructuring is the same regardless of sector: you must follow a fair selection process, consult collectively if 20 or more redundancies are proposed, and calculate statutory redundancy payments based on length of service. We manage the process from start to finish, helping you meet your legal obligations while minimising disruption to your remaining team and the people you serve.
Staff Wellbeing and Burnout
Charity workers are often deeply committed to their cause, which can make it harder to set boundaries and easier to burn out. Smaller teams, limited resources, and the emotional weight of working with vulnerable people or distressing situations all contribute to higher rates of stress and exhaustion. When budgets are tight, wellbeing support is often the first thing cut. But high burnout leads to increased absence, higher turnover, and reduced service quality. We help charities build proportionate wellbeing frameworks, train managers to support their teams, and create cultures where people feel valued and able to sustain their work long-term.
How We Help Charitable Organisations Businesses
We work with charities, social enterprises, and non-profit organisations of all sizes, from small community groups with a handful of staff to national organisations with teams across multiple locations. We provide practical, affordable HR support that reflects the values and constraints of the voluntary sector while ensuring you meet your legal obligations as an employer.
- Draft compliant employment contracts for permanent, fixed-term, and sessional staff
- Create policies and procedures tailored to the charity and voluntary sector
- Manage redundancy processes when funding ends or projects close
- Support with restructuring to align your workforce with changing funding
- Handle disciplinary and grievance processes fairly and proportionately
- Conduct an HR health check to identify compliance gaps and governance risks
- Guide you through staff consultation obligations for collective changes
- Deliver practical HR training for charity managers and team leaders
Key Regulations We Help You Navigate
Staying compliant in the charitable organisations sector means understanding industry-specific legislation. We keep you up to date and protected.
Charities Act 2011
The primary legislation governing charities in England and Wales. Establishes the duties of charity trustees, including the duty to act in the charity's best interests and manage resources responsibly. Employment decisions (pay, restructuring, dismissals) fall within trustee oversight responsibilities. The Charity Commission can investigate concerns about mismanagement, including employment-related issues.
Safeguarding Vulnerable Groups Act 2006
Creates the framework for barring individuals from working with children and vulnerable adults. Charities providing services to these groups must carry out enhanced DBS checks for staff and volunteers in regulated activity. Employers and volunteer coordinators have a legal duty to refer individuals to the DBS when they are removed from regulated activity due to safeguarding concerns.
Employment Rights Act 1996
Applies to charity employees in the same way as any other sector. Covers unfair dismissal protection, the right to written employment particulars from day one, statutory notice periods, redundancy rights, and protection against detriment. Charities cannot claim exemption from employment law obligations because of their charitable status or limited funding.
Equality Act 2010
Prohibits discrimination on the basis of nine protected characteristics. Charities must comply with the same equal opportunities obligations as commercial employers, covering recruitment, pay, training, promotion, and dismissal. Some limited exemptions exist for charities with objects restricted to particular groups (for example, a charity supporting women), but these are narrow and must be applied carefully.
How It Works
Assess
We start with a thorough review of your current HR arrangements: contracts, policies, volunteer agreements, and governance structures. We identify compliance gaps, areas of risk, and opportunities to strengthen your people management within the resources available to you.
Support
We put the right foundations in place: compliant contracts, clear policies, fair processes, and practical guidance for your managers. If you have urgent issues like a restructure, a safeguarding concern, or a difficult employee situation, we handle those alongside the longer-term work.
Sustain
Your dedicated HR consultant becomes a trusted adviser, available for day-to-day queries, formal processes, and governance advice. We help you build a well-managed organisation that makes the best use of its people and demonstrates good practice to funders, trustees, and regulators.
Frequently Asked Questions
Do you work with small charities or only large non-profits?
We work with voluntary sector organisations of all sizes. Some of our clients are small community organisations with two or three paid staff, others are established charities with larger teams across multiple projects. The employment law obligations are the same regardless of size. A charity with five employees has the same duties around contracts, fair dismissal, and redundancy as one with fifty. We scale our support to match your needs and your budget.
Are volunteers covered by employment law?
Genuine volunteers are not employees and do not have employment rights such as minimum wage, holiday pay, or unfair dismissal protection. However, the distinction depends on the reality of the arrangement, not the label you give it. If a volunteer is required to attend at set times, is given tasks in the same way as an employee, and receives more than genuine out-of-pocket expenses, a tribunal could find that an employment relationship exists. We help you structure volunteer agreements and practices that maintain the correct legal status.
Can you help with redundancies when our funding ends?
Yes. Funding-dependent redundancies are one of the most common reasons charities come to us. When a grant ends or a contract is not renewed, you may need to reduce your workforce quickly, but you still need to follow a fair and lawful process. This includes identifying the pool of affected roles, agreeing fair selection criteria, consulting with affected employees (and collectively if 20 or more redundancies are proposed within 90 days), and calculating statutory redundancy payments. We manage the entire process, from planning through to final meetings and exit arrangements.
What HR policies should a charity have in place?
At minimum, you need: a disciplinary and grievance procedure (the Acas Code of Practice applies to charities just as it does to any employer), an equal opportunities policy, a health and safety policy, a data protection and privacy policy, a safeguarding policy (if you work with children or vulnerable adults), and clear terms on absence, holidays, and sickness. Beyond these, many funders and commissioners expect to see policies on whistleblowing, anti-bribery, social media use, and volunteer management. We can carry out a policy review and provide templates tailored to the charity sector.
Do trustees have personal liability for HR decisions?
Charity trustees generally have limited personal liability if the charity is incorporated (for example, a charitable company or CIO). However, unincorporated charities and associations can leave trustees personally exposed. Even in incorporated structures, trustees can face personal liability if they act outside their authority, breach their fiduciary duties, or fail to act on known problems. The Charity Commission expects trustees to oversee significant employment decisions, including senior pay, major restructuring, and settlement agreements. We help trustees understand their responsibilities and make informed decisions.
How do you charge charities for HR support?
We offer flexible pricing that reflects the budget constraints of the voluntary sector. Most of our charity clients choose retained HR support, which gives you a dedicated consultant, unlimited phone and email advice, and a set number of included hours each month for a fixed fee. For one-off projects like a redundancy programme, a restructure, or a policy review, we can agree a fixed project fee upfront. We also offer pay-as-you-go support if you just need occasional help. Your initial consultation is always free and there is no obligation.
“We outsource all our HR to Rebox. They have been instrumental in helping us navigate the complexities of employment law and keeping our business protected.”
Relevant Services for Charitable Organisations
Retained HR Support
Ongoing expert HR support with a fixed monthly fee. Your dedicated consultant learns your charity, your team structure, and your funding model so they can provide advice that fits your organisation.
Learn more →Ad-Hoc HR Services
Pay-as-you-go HR support for charities that need expert guidance without a retainer commitment. Ideal for one-off projects, restructuring, or occasional advice.
Learn more →New Business Support
Setting up your charity as an employer from scratch: contracts, policies, HMRC registration, pension auto-enrolment, and the HR foundations every new employer needs.
Learn more →Ready to Strengthen Your Charity's HR?
Whether you need employment contracts, support with a restructure, or ongoing HR advice for your charity, we are here to help. Book a free consultation and let us show you how we work.
Book Your Free ConsultationOr call: 01327 640070