Legal drivers

Every year, changes in the law and regulations impact voluntary organisations. This chapter overviews several significant changes, along with tips to help you stay legally compliant and where you can learn more.

For a more detailed breakdown, read this guide by law firm Withersworldwide.

Expect greater regulation from Companies House and change at the Charity Commission

Most charities are legally companies limited by guarantee with charitable status. As well as being regulated by the Charity Commission, they are also registered with Companies House. This means that charity trustees are also directors under company law.

The Economic Crime and Corporate Transparency Act 2023 changes how Companies House registers and expects information from companies, including those with charitable status. The changes will impact existing charities and anyone looking to set up a charity.

Key changes include new:

  • checks for directors to verify identity
  • rules for registered office addresses
  • rules for how annual accounts are uploaded. There will be new
  • ways for individuals at personal risk of physical harm or violence (for example, domestic abuse survivors) to apply to have their information protected from public view
  • rising fees to Companies House are also rising to cover the costs of these changes.

Later this year, the chief executive of the Charity Commission, Helen Stephenson, will step down after seven years in the role. With the current post holder taking home up to £140,000 a year with bonus payments of up to £10,000, the role may be in demand. The new chief executive will oversee the development of a new five-year period (2024-29).

Stay ahead

Procurement rules are changing

Procurement is one part of a wider commissioning process that many charities engage with to deliver support to people across a range of areas from criminal justice to social care.

The Procurement Act 2023 changes how public bodies – like government departments, local authorities and quangos – buy goods and services from companies and charities.

This could be private companies or how they commission voluntary organisations to deliver on their behalf. The new law will replace a range of regulations and bring all procurement rules into one law which also reflects the post-Brexit context.

A key change is that when deciding which tenders (proposals) to accept, public bodies will move from selecting the ‘most economically advantageous tender’ to selecting the ‘most advantageous tender’ in line with that procurement process's published assessment methodology and weightings. The new law gives public bodies more flexibility for the type of process they run so the process will adjust based on the complexity and total value of each tender.

There are also changes to:

  • how public bodies must tell organisations they want to buy goods or services
  • how long the contracts will last
  • government ministers gaining more rights to award contracts directly.

The Cabinet Office states it will give a minimum of six months' notice before the new rules come into force. They anticipate this will be October 2024. Current rules will apply until then and will also continue to apply to procurements started before then.

When the new rules start, any voluntary organisation that bids for contracts from public bodies will have to bid in different ways, and how their bid is scored will change.

Our most recent UK Civil Society Aalmanac shows that iIncome from the government makes up a quarter of the sector's income, of which three-quarters were contracts. Any changes to the rules for these contracts may have a big impact on voluntary organisations.

Stay ahead

Larger charities face increased liability to tackle fraud

Laws creating new criminal liability for fraud organisations will likely come into force in 2024. Under the Economic Crime and Corporate Transparency Act 2023, staff or someone acting on behalf of the organisation commits fraud intending to benefit the organisation, the organisation could be liable if they did not have reasonable procedures in place to prevent the fraud.

This only applies to larger organisations – details apply, but generally, organisations with more than 250 employees or more than £36m turnover.

In 2024 we expect the Government to issue new guidance about what type of anti-fraud procedures must be in place before the offence is enacted.

Stay ahead

Check your online services follow new safety laws

Following years of debate and discussion, 2023 saw the Online Safety Act passed. While thefocus has been on ‘big tech’, many of the new legal duties will impact voluntary organisations.

The Landmark Act establishes a new legal framework and regulation for certain internet services and digital communications. It creates a range of new expectations on organisations for their digital channels and several new criminal offences. Ofcom is beefed up, gaining powers as the new online safety regulator, including imposing fines.

The new laws apply to organisations with digital services – (like an app or website) – which allow people to:

  • create and share content
  • interact with each other, like chat or instant messaging services or message forums.

Ofcom will publish a series of Codes of Practices setting out what organisations need to do to follow the law.

If you use other third-party social media sites – like Facebook, Instagram or YouTube – you can expect them to change the way they administer and moderate your content.

We expect the Act to come into force throughout 2024 and beyond. Ofcom has published a Roadmap to Regulation with duties around illegal harms and child protection to be priority areas in 2024.

Stay ahead

Step up action to tackle sexual harassment

The Worker Protection (Amendment of Equality Act 2010) Act 2023 comes into force in October 2024. It requires employers to take reasonable steps to prevent sexual harassment of their employees.

The Equality and Human Rights Commission (EHRC) gains powers to seek enforcement steps from an employer failing to meet the duty.

If an employee wins a case of sexual harassment at the employment tribunal, the tribunal can choose to increase compensation by up to 25%, depending on whether the employer failed to follow its duty.

We expect the EHRC to publish a new Statutory Code of Practice on tackling sexual harassment before the law comes into force.

Stay ahead

New powers to prevent or disrupt protest will come into force

The past few years have seen growth in restrictions on the right to protest. In 2022, Police gained additional powers to restrict protests by placing conditions on them. In 2023, new criminal offences about protest cracked down on tactics such as:

  • locking-on
  • tunnelling
  • obstructing major transport works
  • or interfering with infrastructure.

In 2024, we expect Serious Disruption Prevention Order to come into force. This will allow courts to impose requirements or prohibitions on an individual which they consider necessary to prevent that individual from causing serious disruption arising from protest-related activities.

Develop or check your plans if terrorists strike your buildings

The government plans to place a duty on certain public premises to consider the threat from terrorism and implement appropriate and proportionate mitigation measures. 

The so-called Protect Duty is also known as Martyn's Law, following a campaign to commemorate Martyn Hett, one of 22 people murdered in the Manchester Arena attack in 2017.

The Draft Terrorism (Protection of Premises) Bill proposed two standards of expectations:

  • A standard tier: Qualifying locations with a maximum capacity of over 100 and all places of worship. They must provide information to staff and volunteers with terrorism protection training and write a plan of how they would respond to a terrorist event.
  • An enhanced tier: Locations with a capacity of over 800 people would have further duties to undertake an enhanced risk assessment, produce a security plan and make ensure 'reasonably practicable' standard security measures are put in place.

The Home Affairs Select Committee has criticised the draft bill for being vague and risking negative impacts for community-run and voluntary groups.

The government will be considering how to evolve its plans. If passed this year, it's unlikely that the new legal duties would kick in until 2025.

Stay ahead

Check compliance with new building and fire safety rules

Changes to fire safety rules came into force in October 2023. The new rules require greater fire safety and prevention action in non-residential premises.

There are changes to how Fire Risk Assessments are recorded to:

  • better cooperate and coordinate with others who they share premises with
  • make sure there is a good handover to those with fire safety responsibilities.

Stay ahead

Get set for changes to data protection

The Data Protection and Digital Information Bill is currently progressing through parliament with elements are likely to come into force later this year.

The Bill aims to 'create a new UK data rights regime' post-Brexit by simplifying current data protection laws. For example, it aims to streamline rules about what data you can store for what reasons.

It will also change the process of responding to subject access requests (when an individual requests to access and receive a copy of personal data held by an organisation). It will also strengthen the Information Commissioner's Office, boosting its powers to manage data protection.

The changes should make it easier for charities to follow the direct electronic marketing and fundraising rules and respond to those seeking to know what information they hold.

However, there are concerns that simplified rules will also weaken privacy rights and how people can control their data.

Changes to employers' duties

There are a range of new duties which will impact employers:

  • Record keeping: New rules will simplify what types of records employers need to keep around working time. From 2024, employers are now required to create, maintain, and keep these records in such manner and format as the employer reasonably thinks fit.
  • Holiday rights: Rules around how leave will be calculated from 1 April 2024 will change for part-time workers and those working irregular hours. These workers will also be able to get "rolled up holiday pay" – where they can get additional pay in each payslip but no pay when they take their holiday.
  • Transfer of employment: New rules will simplify the transfer of employees between employers. From July, employers with fewer than fifty employees and organisations of any size undertaking a ‘"small transfer’" (such asi.e., fewer than ten employees) can consult directly with their employees if there are no existing worker representatives in place.
  • Flexible working: The Employment Relations (Flexible Working) Act 2023 is expected to come into force in July 2023. This changes the way employees can request flexible working requiring employers to consult with the employee before rejecting their flexible working request. It removes current rules that employees must explain what effect, if any, the change applied would have on the employer and how that effect might be dealt with. It also changes various timescales employers must comply withfollow. A revised statutory ACAS Code on Flexible Working will be issued.
  • Carers rights: The Carer's Leave Act 2023 will likely come into force in April 2024. It will introduce a statutory entitlement to one week of flexible unpaid leave per year for employees who are caring for a dependant with a long-term care need.
  • Pregnancy: The Neonatal Care (Leave and Pay) Act 2023 gives parents the right to 12 weeks' leave and pay when their baby requires neonatal care. The Protection from Redundancy (Pregnancy and Family Leave) Act 2023 allows the government to extend the period when an individual is protected from redundancy during or after maternity, adoption or shared parental leave. Keep a look out for when these may be brought into force.
  • Predictable terms: Workers (Predictable Terms and Conditions) Act 2023 introduces how casual workers and those on zero-hour contracts can get more predictable terms and conditions. It will allow workers to formally apply to change their working patterns to make the hours or times they work more predictable. Once a worker has requested, their employer must notify them of their decision within one month. A consultation on a draft ACAS Code of Practice closed on 17 January 2024.

Stay ahead

This page was last reviewed for accuracy on 22 February 2024