General Information
Explanatory Notes
Test for Employed/Non-Employed Status [for people undertaking parish duties]
Model Statement of Main Terms and Conditions of Employment [for an employed person]
Model Contract for Services [for a self-employed person]

General Information
Parishes make use of a variety of volunteers and paid staff to undertake duties as diverse as directing the church's music, producing the parish magazine and running the children's after-school club. It is important that each PCC is aware of the status of all these people as regards employment law and that the terms under which they work are agreed between the PCC and the individuals concerned.

A person undertaking parish duties may be either:-
● a volunteer
● an employee
● self-employed

Some areas of legislation eg. the PCC's duty to ensure the health and safety of the person concerned - apply to all three categories. Other areas of legislation, such as the right to claim unfair dismissal, apply only to employees. Problems can arise if there is a misunderstanding about a person's status in one of the three categories; if the PCC is not aware of the implication of that status in determining what legislation is applicable; or if the nature of the relationship changes over time.

In order to help PCC’s avoid problems, the Board of Finance's personnel consultants have drawn up the following information package:-

1. Explanatory Notes
2. Test for employed/non-employed status [for people already undertaking parish duties]
3. Model Statement of Main Terms and Conditions of Employment [for an employed person]
4. Model Contract for Services [for a self-employed person].

If queries or difficulties do arise, please contact the Diocesan Secretary, who can refer the matter to an adviser, if necessary.

NOTES to accompany test for voluntary workers/employed/non-employed status; contract for services; statement of main terms and conditions of employment
1. The Test for Voluntary Workers should be used to help determine whether a "volunteer" is an employee or not (see attached).

2. If they are a volunteer, then assuming nothing is done (as noted in the document) to move the relationship to one of employment, their status remains as a volunteer and no contractual relationship exists. It may be helpful to confirm in writing to the individual that the status is voluntary and that no "employed status" exists.

3. If employed status is agreed or felt to exist, then this should be clarified and formalised with a Statement of Main Terms and Conditions of Employment duly completed (see draft attached).

4. Where there is an intention to operate a contract for the provision of personal services (self employment), then the Contract for Services should be used duly completed (see attached). In the document the following clauses are for clarity and are optional: 6, 12, 15. Clause 16 is only necessary if it is felt that any act or omission on the part of the Parish Administrator could cause injury to a third party.

5. For clarification the following terms are given a definition:-

Agreement
A Contract of Employment, preferably in writing, which is intended to be legally binding; where there is consideration ie. payment; and where there is mutual obligation, ie. the employee to provide work or labour and the employer to provide the work and agreed remuneration, or other form of payment.

Contract for Personal Services
A legally binding agreement whereby someone provides services personally to effect work for someone else, who pays them for the services provided at an agreed rate.

Work or Labour
Are those activities or duties which are not voluntary and which, therefore, attract "consideration" by way of payment.

Consideration
Payment, usually in the form of money, for work or labour undertaken. Noncash benefits are also likely to be deemed taxable.

Honorarium
If genuinely unexpected/non-negotiated, ie. impromptu; modest, and given in recognition, then such a gesture is unlikely to be seen as "pay" or infer "employed" status.

Implied
Implied terms of employment are orally agreed, ie. not written down, but can still form a legally binding agreement. However, implied terms are usually difficult to judge as they are more open to differences of opinion or recollection, and can be problematical in interpretation. There may be fundamental precepts related to a work relationship which have not been specifically identified by the parties, whether oral or in writing, but which a Court might deem are "implied" in the Contract, eg. loyalty, integrity, reasonableness, confidentiality, to work diligently, trust and confidence.

Stated
Refers to having been put in writing. If any queries or difficulties arise from the above, please contact the Diocesan Secretary who can refer the matter to an adviser, if necessary.

TEST for voluntary workers: employed/non-employed status:

1. Is there any “Agreement”, whether written or oral, stated or implied?
2. Apply the following tests to any Agreement: is it/was it intended that it be legally binding? Is there any consideration, either in monetary payment (remuneration) or other form? (see Point 4 below).
3. If an honorarium is paid or intended, is it/was it expected/asked for/ accepted/ agreed and regular, as opposed to impromptu, spontaneous, or oneoff?
4. If there is no monetary consideration, are there non-cash forms of “remuneration”, eg. free meals or accommodation, holidays, free or discounted goods or services, tickets, retainers, or other advantageous benefits?
5. If paid expenses or other form of “payment”, are they paid irrespective as opposed to being checked for genuineness and against receipts?
6. Does the volunteer do “work”, eg. typing, administration, phone work, diaries, etc., or merely typical voluntary activities, eg. fund-raising, attending meetings, visiting, providing training, etc? If some of each, what is the split? (NB. Voluntary activities are not normally classed as work).
7. Must, and does the volunteer do the “work” personally (dominant purpose of the contract)?
8. Are any other volunteers paid the same (whether expenses, benefits or other) irrespective of the circumstances of each?
9. Is the volunteer subject to discipline, termination or other sanctions?
10. Are there agreed or set hours, and, if so, what happens if there is an excess or shortfall? Is any holiday, sickness or maternity pay (and absence) paid?
11. Are there any other features that apply to the “work”?
12. Are there any set timescales to the work; methods of working set down; deadlines, or instructions from a Manager/Supervisor?
13. Are there any Tax or NI obligations on either party?
14. Does the volunteer use Parish equipment, eg. PC and office space?
15. Is there mutual obligation, ie. the volunteer is expected to undertake the work and the parish is expected to provide it?

Note: The more questions which are answered “yes”, the more likely the person is to have the status of an employee.

STATEMENT of main terms and conditions of employment

NAME OF PARISH (“THE PARISH”) OR THE EMPLOYER IF NOT THE PARISH..........................................................

EMPLOYEE’S NAME ……………………………………………………………………………...

Date at which the information in this document is correct ……………………………………………..............................

MAIN PLACE OF WORK: Your main place of work will be ………………………………………………………………….

DATE OF COMMENCEMENT OF EMPLOYMENT …………………………………………...

Your employment with any previous employer does not count as part of your continuous period of employment.
OR
For the purposes of your employment rights, your previous employment with ……………………... counts as part of your continuous period of employment from ……………………………………….

JOB TITLE
You are employed as ……………………………………………………………………………
It should be noted that you will/may be required/requested to undertake work of a similar nature from time to time as the workload so requires.

1. WAGES/SALARY
1.1. As an hourly/weekly/monthly paid employee, your gross wages at the date of issue of this statement are £ …. per hour/week/month. Any changes to this figure will be made by letter. Your wages are payable in cash/cheque/ direct credit transfer to your bank account each ……………….. for the month/ week ending the previous ……………………/current week.

2. HOURS OF WORK
2.1. You will normally work a ……. Hour week of five days Monday to Friday inclusive.
2.2. Your normal starting time is ….. a.m. and your normal finishing time is ………..p.m. Monday to Friday with an unpaid lunch break of ………. hour each day.

3. HOLIDAYS AND HOLIDAY PAY
3.1. The holiday year is from …………… to …………. each year.
3.2. The full annual entitlement is ..... working days with pay per year (NB. See legal minimum holiday entitlement below. Part-time staff should receive a pro-rata entitlement).
3.3. Staff joining or leaving employment during the year will be entitled to a proportion of their full entitlement of paid holiday calculated on a pro rata basis per completed week of service.
3.4. Your annual holiday entitlement accrues at the rate of ..... days per calendar month which equals ..... days per year.
3.5. In addition to the above, you will also receive a paid holiday on or in respect of each of the eight Public Holidays as listed below where such a day falls on a normal working day: (NB: Part-time staff should receive a pro-rata entitlement)
New Year’s Day Spring Bank Holiday
Good Friday Late Summer Holiday
Easter Monday Christmas Day
May Day Boxing Day
3.6 You will continue to receive normal salary whilst taking annual holiday entitlement.
3.7. Should you leave this employment for whatever reason and holidays taken exceed entitlements, then you accept as part of these Conditions of Employment that the Parish has the right to deduct payments made in excess from any monies owing to you at the time of leaving.
3.8. Subject to the entitlements conferred by the Working Time Regulations and s.71 of the Employment Rights Act 1996 (General right to Maternity Leave), the Parish reserves the right to reduce your annual holiday entitlement by a proportional amount if you are absent for any reason during the holiday year for more than a total of .... weeks (NB. This only applies, if used, when annual leave is in excess of the four weeks’ minimum set out in the Working Time Regulations).

4. SICK PAY SCHEME
4.1. The Parish does not operate a Sick Pay Scheme and you will not be paid for periods of absence except for any entitlement you may have under the Statutory Sick Pay Scheme for which the qualifying days will be .........to .........
OR
4.2. The Parish operates a discretionary Sick Pay Scheme details of which are given in Appendix 1 attached. (Parishes should seek further guidance from the Diocesan Secretary if necessary).

5. PENSION SCHEME
5.1. The Parish does not operate a Pension Scheme and all employees are contracted into the State Pension Scheme in accordance with the current statutory entitlement. (NB. If a Parish Pension Scheme exists, refer reader to details in Appendix 2 or seek further guidance from the Diocesan Secretary if necessary).
AND/OR
5.2. The Parish, in accordance with its legal requirement provides access to a Personal Pension through the stakeholder principle. Employees who are interested in taking up such an opportunity should contact the following ……………… ??

6. GRIEVANCES
6.1. The Parish’s grievance procedure is as detailed in Appendix 3 attached.

7. DISCIPLINARY PROCEDURES
7.1. The main disciplinary procedures of the Parish are as detailed in Appendix 4 attached.

8. TERMINATION OF EMPLOYMENT
8.1. The Parish is required to give you, after one month’s continuous service, the following statutory notice (NB. These are the Statutory minimums, the Parish can exceed if they want to) in writing according to your length of service.
8.1.1. Up to two years’ continuous service ...................………………………...1 week
8.1.2. After two years’ continuous service but less than three years’ continuous service ............................... 2 weeks
8.1.3. Then increasing by one week for each completed year of continuous service up to a maximum entitlement of ...................... 12 weeks
8.2. You are required to give the Parish after one month’s continuous service one week’s (Statutory)/month’s notice in writing irrespective of length of service.
OR
8.3 You are required to give the same notice as the Parish is required to give you.
8.4. If you give notice to the Parish to terminate your employment or you are given notice by the Parish, it may be possible, by mutual agreement, to waive the formal periods of notice.
8.5.1 The Parish has the right to dismiss employees without notice in the case of gross misconduct.
8.6 The Parish reserves the right to make deductions from your salary upon leaving or otherwise to reclaim any outstanding monies owed by you to the Parish.

9. NON-DISCLOSURE OF INFORMATION
9.1. During and after this employment you agree not to divulge any information gained in carrying out your work, to any unauthorised party.

10 DATA PROTECTION
10.1 I understand that the Parish may hold personal data in relation to my employment with the Parish and be required to process data within the requirements of the Data Protection Act, 1998.

11. DECLARATION
I accept this Statement, a copy of which has been given to me.
Signed: ……………………………………..
Dated: ....................................................

NOTES ON HOLIDAYS
Statutory Minimum Holidays
Assuming someone working a five day week (pro-rata for less):-
Annual paid leave: 4 weeks (or 20 days)
(NB: This can statutorily include the 8 standard Public Holidays (pro-rata for parttimers) or they can be given (with pay) in addition, on a discretionary basis).

APPENDIX 3
6. GRIEVANCE PROCEDURE
6.1 The Parish acknowledges that during the course of their employment an employee may have concerns, problems or complaints which need addressing. These are known as grievances. If such grievances cannot be resolved informally, then the formal procedure set out below, must be followed.
6.2 The purpose of the procedure is to allow the Parish to deal with grievances fairly, consistently, confidentially and speedily. To this end, every endeavour will be made to resolve any grievance within 5 working days at each stage.

Stage 1
6.3 You must set out, in writing, details of your grievance(s) and submit this to your Manager.
6.4 You will then be invited to a meeting and must take all reasonable steps to attend.
6.5 You have the right to be accompanied at this meeting by a colleague who is either a fellow worker or an official of a Trade Union.
6.6 The purpose of the meeting is to consider and try to resolve the grievance(s) you have set out in writing.
6.7 The outcome of the meeting will be confirmed to you in writing.

Stage 2
6.8 If you are not satisfied with the outcome at Stage 1, you must set out your reasons, in writing and submit this to the PCC.
6.9 You will then be invited to a meeting and must take all reasonable steps to attend.
6.10 You have the right to be accompanied at this meeting by a colleague who is either a fellow worker or an official of a Trade Union.
6.11 The purpose of the meeting is to consider and try to resolve the grievance(s) you have set out in writing.
6.12 The outcome of the meeting will be confirmed to you in writing, as will your right of appeal.

Stage 3
6.13 If you are not satisfied with the outcome at Stage 2, you will be given the right to an appeal meeting with the Diocesan Secretary who have not been previously involved in the procedure.
6.14 You will be expected to take all reasonable steps to attend the appeal meeting and have the same rights to accompaniment as applied at Stages 1 and 2.
6.15 The purpose of the appeal meeting is to consider and try to resolve the grievance(s) you have set out in writing.
6.16 The outcome of the appeal meeting will be confirmed to you in writing. This is the final stage in the procedure.

APPENDIX 4
7. DISCIPLINARY PROCEDURE
Aim
7.1. The Parish requires rules and procedures to be complied with to ensure a good relationship between employees and their Manager. It is hoped that there will be no need to use the disciplinary procedure. However, should such action be deemed necessary, the procedure laid down below should allow all relevant issues to be fairly dealt with. Disciplinary action is initially at the discretion of the individual's immediate Manager.

Preamble
7.2. Disciplinary action taken against employees for matters concerning performance, behaviour or absence, etc., will follow one of the two procedures detailed below. The Standard Procedure will apply in all circumstances, unless the Modified Procedure applies. The Modified Procedure will apply where summary dismissal has already occurred.

Standard Procedure
7.3.1.

(i) The Employer will set out in writing the employee’s alleged conduct or characteristics, or other circumstances which led the Employer to contemplate dismissing or taking disciplinary action against the employee.

(ii) The Employer will send the statement or a copy to the employee and invite the employee to attend a meeting to discuss the matter.

7.3.2.

(i) Unless the disciplinary action contemplated consists of suspension, no action will be taken before the meeting has taken place.
(ii) The meeting will not take place unless the Employer has informed the employee what the basis was for including in the statement under clause 1 (i) above, the ground or grounds given in it, and the employee has had a reasonable opportunity to consider their response to that information.
(iii) The employee must take all reasonable steps to attend the meeting, but if he/she fails to do so, the Employer is entitled to proceed with the meeting in the employee’s absence.
(iv) At the meeting the employee will be given an opportunity to explain their case.
(v) Following the meeting the Employer will inform the employee of the decision and notify them of their right to appeal against it if they are not satisfied with it.

7.3.3.

(i) If the employee does wish to appeal he/she must inform the Employer within five days of the receipt of the Employer’s decision on disciplinary action.
(ii) If such notice of appeal is given the Employer will invite the employee to attend a further meeting and the employee must take all reasonable steps to attend that meeting, which need not take place prior to any dismissal or other disciplinary action taking effect.
(iii) The employee will be notified of the Employer’s final decision within seven days of the appeal meeting.

Modified Procedure
7.4.

(i) The Employer will set out in writing the employee’s alleged conduct which has led to the dismissal, and also what the basis was for thinking at the time of the dismissal that the employee was guilty of the alleged misconduct and will notify the employee of his/her right to appeal against the dismissal.

(ii) The Employer will send a copy of the statement with the information referred in clause 1(i) above to the employee. If the employee wishes to appeal he/she should give written notice within five working days of receipt of this statement.

(iii) If notice of appeal is given then the Employer must invite the employee to attend a meeting and the employee must take all reasonable steps to attend that meeting.
(iv) After the appeal meeting the Employer will inform the employee of the final decision in this matter within seven days of the meeting taking place, and in writing.

General Disciplinary Provisions applicable to the Contract of Employment
7.5.

(i) Save in cases where summary dismissal has already occurred, the Employer, in considering an alleged breach of
discipline, may either take no action, give an oral warning, a first written warning, a final written warning, or implement dismissal.
(ii) In the case of an oral warning a record of this will be kept on the employee’s personnel file and will not be considered spent until six months has elapsed from that date. The warning will give detail the reason, the expected improvements, and the time scale within which those improvements are expected to occur.
(iii) In the case of the first written warning, if the Employer considers this to be necessary it will be confirmed in writing and a copy will be kept on the employee’s personnel file and will not be considered spent until twelve months have elapsed from the date of the warning. This warning will detail the reason for its imposition, the expected improvements, the timescale within which those improvements should occur, and the names of those present.
(iv) In the case of a final written warning, it will be confirmed in writing and a copy will be kept on the employee’s personnel file and will not be consider spent until twelve months have elapsed and will again detail the reason for its imposition, the expected improvements, the timescale within which those improvements should occur and the names of those present. This warning will also confirm that any further breaches of discipline could lead to termination of employment.
(v) There follow examples of misconduct and gross misconduct which can give rise to disciplinary action under these procedures.
These lists are not intended to be exhaustive or restrictive and other issues not listed may also be considered at warranting disciplinary action being taken. In the case of gross misconduct the employee will be summarily dismissed without notice and without the necessity for the Employer to issue any warnings, whether verbal or written.

Examples of Misconduct and Gross Misconduct

Misconduct
Misuse of the Parish's E-mail, Internet or internal mailing facilities
Persistent absenteeism or lateness
Poor effort or sub-standard work
Absence without authorisation
Failure to follow absence reporting procedures
Non-serious failure to comply with health and safety requirements
Misuse of Parish equipment
Failure to comply with a reasonable management instruction
Incapacity through drink or drugs
Sleeping on the premises
Foul or abusive language
Abusive, objectionable or insulting behaviour
Disorderly conduct
Wilful or excessive wastage of Parish time or materials
Damage to plant, equipment or material caused by carelessness
Misinterpretation of fact - lying

Gross Misconduct
Serious misuse of the Parish's E-mail, Internet or internal mailing facilities
Theft of others' possessions whether belonging to the Parish, employees, or visitors
Fraud, bribery or falsification of records
Fighting/Physical Assault
Gross immorality or indecent behaviour
Malicious damage to Parish property
Possessing and/or taking illegal drugs and/or alcohol on Parish premises
Smoking in prohibited areas
Serious cases of non-compliance with health and safety instructions
Racial, disability or sexual harassment or discrimination
Refusal to carry out reasonable management instructions
Unauthorised release of sensitive Parish information
Undertaking private work on Parish premises without prior authorisation
Negligence or neglect of duty resulting in any loss which might expose the parish to a serious claim
Solicitation and/or acceptance of money, gifts, services or other inducements for personal gain or the gain of family or friends
7.6. In the case of gross misconduct employees will be summarily dismissed without notice and without the necessity of issuing warnings as detailed above.
7.7. Other issues not previously identified may also be considered as warranting disciplinary action being taken.
General
7.8. Advance notice, of no less than 24 hours, will be given of any Disciplinary Hearing.
7.9. Disciplinary action will not be taken until the case has been carefully investigated. The employee must take reasonable steps to attend any meeting.
7.10. The outcome will be notified in writing to the employee and will confirm any action that is required.
7.11. The Parish reserves the right to use or omit any step in the procedure should it consider it appropriate and also reserves the right to have a flexible yet fair standard of disciplinary employees if required, including the right to appeal. Where the employee is given the right to appeal and exercise their right to do so, they must inform the Parish in writing.
7.12. The Parish reserves the right to suspend any employee with pay, normally for up to five working days to investigate an incident at any stage of the procedure, and without pay as a disciplinary measure as an alternative to dismissal, but at the Parish’s discretion.
7.13. The employee has the right to be accompanied by a fellow employee or Trade Union Representative at any disciplinary/dismissal meeting.
7.14. The employee has the right to appeal against any disciplinary/ dismissal decision being made by the Parish. Any appeal should be put in writing within five days of confirmation of the disciplinary action and submitted to the PCC. Appeals should normally be submitted to a level of management senior to that which carried out the original disciplinary/ dismissal decision. The outcome of the appeal will be confirmed by letter.

CONTRACT for services:
THE DIOCESE OF ST ALBANS
AN AGREEMENT MADE ON ……………………………………………

BETWEEN …………………………….............................. (“THE PARISH”)

AND …………………...................................................... (“THE PARISH ADMINISTRATOR”)

FOR THE PERSONAL PROVISION OF PARISH ADMINISTRATION SERVICES
Signed in Agreement:

For the Parish of ………............................................... Date: _______________________________

(insert name)................................................................ Date: _______________________________

IT IS AGREED THAT:
1. The Parish Contracts with ……………............................... for the provision of administrative services.
2. ………………................................ (“the Parish Administrator”) agrees to personally provide administrative services for the Parish.
3. The Contract for Services commences on ………………………………………… for a renewable period of …………………………. at (insert venue)……………………..
4. The first 3 months of the Contract for Services will be a probationary period and either party may elect to terminate the contract by the giving of one month’s written notice at the end of, or at any time during this period. Thereafter, the Contract for Services may be terminated at any time by either party giving written notice of one month to the other party.
5. This Contract for Services shall not constitute “employment” as defined in the Employment Rights Act 1996 (S.230).
6. The Parish Administrator will be responsible for registering as selfemployed with the Inland Revenue, where applicable, for the purposes of payment of Income Tax and National Insurance Contributions.
7. The Parish shall be entitled to terminate the Contract for Services with immediate effect in the event of breach or serious misconduct by the Parish Administrator.
8. The Parish Administrator will provide general administration services for up to …. hours per week/month on the following basis:-
…...... a.m. to …….. p.m. Monday to Friday (or whatever).
9. The services provided will include:

(List services provided)

or such other reasonable services as may be required from time to time.
10. The Parish Administrator shall carry out the administrative duties to a satisfactory standard as defined by the Parish and take reasonable instructions from …………………................
11. The Parish Administrator will invoice the Parish weekly/monthly for agreed hours of service rendered at the rate of £…….......... per hour gross.
12. The Parish shall pay The Parish Administrator against the invoice rendered, by cheque within …… days of receipt.
13. No other benefits or consideration are attracted to the services rendered.
14. As much notice as possible should be given by the Parish Administrator of any inability to provide the agreed contracted services.
15. The Parish Administrator is free to undertake services for other clients so long as this does not interfere with the services rendered to the Parish – within the agreed hours.
16. The Parish Administrator is responsible for ensuring that they are covered by a Public Liability Insurance policy in respect of the Parish and shall produce evidence of such cover.
17. During the supply of the services or after terminating, the Parish Administrator agrees not to divulge any information gained in carrying out the services to any unauthorised party.
18. At all times during the exercising of the Contract for Services, the Parish Administrator will recognise any reasonable standards of conduct and appearance laid down by the Parish and will be sympathetic to the purpose and aims of the Church of England and to the Christian calling.
19. In the event of any misunderstanding or grievance regarding this Contract for Services or in its enactment, the Parish Administrator should express the matters orally or in writing to the Vicar. If still unresolved, the
grievance should be taken up with the Church Wardens.
20. Any modifications or changes to this Contract for Services shall be mutually agreed by both parties and a new Contract for Services drawn up and signed by both parties.