Community Interest Company

worriedmum46

My friend applied and has been offered a job managing a local charity shop She was not expecting a huge salary but has been offered £60 per week. Monday to saturday 8-6. She had expected a low wage - but above minimum wage. is this even legal? On looking into the shop she found it is not a registered charity but has been set up as a CIC with five directors taking a salary from it despite not being there during trading hours.

pramsay13

No, that wouldn't be legal but are you sure that's the wage?

I thought even managers were volunteers in charity shops so is it maybe travelling / other expenses?

The directors taking a salary is a separate issue and you can report them to the CIC regulator if you think there is an issue.

worriedmum46

Not sure directors taking a salary is an issue if they are allowed to. Not sure how they 'earn it'. Bit concerned we all thought it was a charity shop and it's not.
Friend applied for the managers job as she needs to work and needs to earn some money. She has experience and was shocked. I'll see her next week to see her offer letter. Perhaps they have just offered expenses or a nominal salary. Just wondered if it was legal. All seems a little strange.

Savvy_Sue

pramsay13 wrote: »

I thought even managers were volunteers in charity shops so is it maybe travelling / other expenses?

Not necessarily: in fact I've seen many adverts for paid managers, alongside adverts for volunteers.



Bottom line, your friend needs to earn some money. This place isn't offering what she needs. In her position, I'd politely decline the offer and keep looking elsewhere - now is a very busy time for many shops, cafes and restaurants so it ought to be possible to pick up something which is actually paying at least minimum wage.



I don't know that HMRC will investigate a failure to pay minimum wage if she isn't actually working for them - they'll probably claim it was a misunderstanding. Maybe it is, maybe it isn't, but honestly, to expect someone to work those hours as a volunteer is ludicrous.

00ec25

worriedmum46 wrote: »

Just wondered if it was legal.

it is clear you do not have sufficient facts to enable anyone on here to pass comment on that position. The whole point of a CIC, and the major difference from a normal company, is that its assets are locked into the business to ensure that they are applied for its social purpose.

- yes managers of charity shops are often paid posts

- yes volunteers work long hours without pay - one (old) lady in our village does 5 days a week for 5 hours per day because she is (still) able to do so, and it avoids sitting at home being lonely

- yes directors of a CIC can draw a salary, what they cannot do is pay themselves dividends from any profits made. Being a charity is not the best route for many social entrepreneurs because of the basic rule of charity law that charities must in most circumstances have volunteer boards. A major advantage of CICs is that their directors can be paid a salary, which means that the founders of the CIC can retain strategic control of the enterprise by sitting on the board as paid directors.

Savvy_Sue

00ec25 wrote: »

- yes volunteers work long hours without pay - one (old) lady in our village does 5 days a week for 5 hours per day because she is (still) able to do so, and it avoids sitting at home being lonely.

I don't doubt that many volunteers do indeed volunteer many hours. BUT I still think it is unreasonable / unwise to offer what looks like a job, requires long and regular hours, yet is not paid. You're limiting the pool of potential applicants, and in this case it appears wasted a lot of time and energy without successfully appointing.

Unless there's been a misunderstanding.

poggles

00ec25 wrote: »

it is clear you do not have sufficient facts to enable anyone on here to pass comment on that position. The whole point of a CIC, and the major difference from a normal company, is that its assets are locked into the business to ensure that they are applied for its social purpose.

- yes managers of charity shops are often paid posts

- yes volunteers work long hours without pay - one (old) lady in our village does 5 days a week for 5 hours per day because she is (still) able to do so, and it avoids sitting at home being lonely

- yes directors of a CIC can draw a salary, what they cannot do is pay themselves dividends from any profits made. Being a charity is not the best route for many social entrepreneurs because of the basic rule of charity law that charities must in most circumstances have volunteer boards. A major advantage of CICs is that their directors can be paid a salary, which means that the founders of the CIC can retain strategic control of the enterprise by sitting on the board as paid directors.

But working 8am-6pm, 6 days per week without a break is illegal.

The worker is allowed at least a 20 minute break (unpaid) per day.
Even if the worker were provided with 1 hour unpaid break(s) per day, that would still equate to 54 working hours a week which is illegal, unless the worker agrees to forego the limit of 48 hours per week (average).

But as Savvy_Sue has already indicated to the OP,

Bottom line, your friend needs to earn some money. This place isn't offering what she needs. In her position, I'd politely decline the offer and keep looking elsewhere ...

00ec25

poggles wrote: »

But working 8am-6pm, 6 days per week without a break is illegal.

as i said, OP does not appear to know the full facts

I agree that if a legally binding employment contract arises, the individual would be entitled to the National Minimum Wage, (unless a specific exemption applied eg. <19 apprentices and seafarers) but we simply cannot say on the info provided.