Sick Leave and Holidays

Sick leave and holiday

Statutory holiday sicknessentitlement is built up (accrued) while an employee is off work sick (no matter how long they’re off).

Any statutory holiday entitlement that isn’t used because of illness can be carried over into the next leave year. If an employee is ill just before or during their holiday, they can take it as sick leave instead.

An employee can ask to take their paid holiday for the time they’re off work sick. They might do this if they don’t qualify for sick pay, for example. Any rules relating to sick leave will still apply.

Employers can’t force employees to take annual leave when they’re eligible for sick leave.

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When an employee changes their holiday to sick leave they’re paid Statutory Sick Pay which will count towards the amount of holiday pay they’ve received. The exceptions to this rule are:

  • they don’t qualify for Statutory Sick Pay
  • they were off work sick and being paid ‘occupational sick pay’

Charity Reserves

What Are Reserves?

Reserves are that part of a charity’s unrestricted funds that is freely available to spend on any of the charity’s purposes. This definition excludes restricted income funds and endowment funds, although holding such funds may influence a charity’s reserves policy. Reserves will also normally exclude tangible fixed assets such as land, buildings and other assets held for the charity’s use. It also excludes amounts designated for essential future spending.

Reserves also exclude funds which have particular restrictions on how they can be used. Trustees should consider for what purpose restricted funds are held and how they are being used in order to identify those resources that are freely available to spend.

You can find out much more about Reserves here

Making Changes to the Objects of your Charity

https://2.bp.blogspot.com/-HC4I2B27Tik/Vtyc2klw5uI/AAAAAAAABuQ/LpMGDO131Uw/s1600/man%252Bbook-29749.pngYour charity’s objects or purposes, and the rules for how it should operate are set out in its Governing Document.

Only change your governing document if it’s in your charity’s best interest to do so. For example, if:

  • your charity’s purposes aren’t a practical or appropriate way to meet the need it was set up for any more
  • your governing document doesn’t say who your charity’s trustees are or how they are appointed
  • provisions explaining how you must run the charity (for example, how to arrange meetings) are no longer relevant or practical

As trustees, you’ll need to decide that the change is necessary and what it should be. You can make some changes yourself but others need Charity Commission permission.

More detailed information can be found here

Setting Up a Charity

FundraiserThere are 6 steps to setting up a charity.

  1. Find trustees for your charity – you usually need at least 3.
  2. Make sure the charity has ‘charitable purposes for the public benefit’.
  3. Choose a name for your charity.
  4. Choose a structure for your charity.
  5. Create a ‘governing document’.
  6. Register as a charity if your annual income is over £5,000 or if you set up a charitable incorporated organisation (CIO).

More information can be found here

The Trustees’ Annual Report

Image result for The Trustees' Annual ReportAbout Charity Trustees’ Annual Reports

Your trustees’ annual report helps people understand what your charity does, particularly potential funders and beneficiaries.

You need to write a trustees’ annual report if your charity is registered in England or Wales. Along with your accounts, the report tells people:

  • about your charity’s work
  • where your money comes from
  • how you’ve spent your money in the past year

More information and examples of Trustees’ Reports can be found here

Shared Parental Leave and Pay

shared parental leaveYou may be able to get Shared Parental Leave (SPL) and Statutory Shared Parental Pay (ShPP) if:

  • your baby is due on or after 5 April 2015
  • you adopt a child on or after 5 April 2015

If you’re eligible for SPL you can use it to take leave in blocks separated by periods of work, instead of taking it all in one go.

To start SPL or ShPP the mother must end her maternity leave (for SPL) or her Maternity Allowance or maternity pay (for ShPP). If she doesn’t get maternity leave (but she ends her Maternity Allowance or pay early) her partner might still get SPL.

Example A mother and her partner are both eligible for SPL and ShPP. The mother ends her maternity leave and pay after 12 weeks, leaving 40 weeks available for SPL and 27 weeks available for ShPP. The parents can choose how to split this.

More detailed information can be found here

Charity Accounts: Retention of Records

https://www.pncpa.biz/portals/0/19.jpgWe are often asked how long organisations should retain their financial records, so here is some short guidance: 

What are the requirements for all charities?

All charities must:

  • keep accounting records – these records (eg cash books, invoices, receipts, Gift Aid records etc) must be retained for at least 6 years (or at least 3 years in the case of charitable companies) – where Gift Aid payments are received records will need to be maintained for 6 years with details of any substantial donors and to identify ‘tainted charity donations’ in accordance with HMRC guidance

More details can be found here

Another useful document can be found here – this also includes details of payroll document retention, employee details etc  

When to Start Paying Sick Pay

http://news.lanop.co.uk/wp-content/uploads/2012/09/sick-duck-83431_184x184.jpgWhen to start paying SSP

SSP is paid when the employee is sick for at least 4 days in a row (including non-working days). You start paying SSP from the fourth ‘qualifying day’ (day an employee is normally required to work). The first 3 qualifying days are called ‘waiting days’.

You can’t count a day as a sick day if an employee has worked for a minute or more before they go home sick.

If an employee works a shift that ends the day after it started and becomes sick during the shift or after it has finished, the second day will count as a sick day.

Exception

You don’t usually pay SSP for the first 3 qualifying days unless they’ve been off sick and getting SSP within the last 8 weeks.

More detailed information can be found here