Charity leaders on long term leave face legal uncertainty, research warns

Trustees and charity directors on maternity and long-term leave face uncertainty about their legal responsibilities while they are away, research is warning.

The Chartered Governance Institute UK and Ireland (CGIUKI) research has found a “significant gap” in legal and governance frameworks governing extended leave, which raises “concerns about accountability and responsibility when trustees, directors and other statutory officeholders step away from their duties for prolonged periods”.

It found that “in many cases” those on leave remain legally responsible for decisions and actions taken by charities despite being absent from their role “with no clear framework governing how responsibilities should be managed during that period”.

This “lack of clarity” creates a governance risk to charity leaders and charities alike “potentially weakening accountability, creating uncertainty around decision-making responsibilities and discouraging talented people from taking on board and trustee roles”.

“People who take maternity leave, long-term sick leave or time away to care for loved ones should not find themselves navigating legal uncertainty at the same time,” said CGIUKI chief executive Linda Ford.

“Our research highlights a significant gap in the current framework governing extended leave. Good governance depends on clear accountability, but at present organisations and officeholders are often left to navigate these situations without a clear understanding of where responsibility sits.”

She added: “We are calling for clearer legal and regulatory guidance as an important first step. Longer term, policymakers should consider whether changes to company and charity governance frameworks are needed to provide greater certainty for trustees and directors.”

Researchers say the issue affects several sectors but “charities may be particularly exposed”, as unlike larger organisations they may not have the governance infrastructure in place to ensure there is clarity when leaders are on extended leave.

Research lead author Dr Valentina Dotto added: “Extended leave is not a niche issue. It affects people at different stages of life and career and across every sector.

“Our research identified significant uncertainty about how responsibilities should be managed during periods of absence, with organisations often developing ad hoc approaches.

“Greater clarity would help protect individuals, support organisations and strengthen accountability across all sectors.”



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