Can an unincorporated organisation managed by a voluntary management committee employ staff when they do not have a separate legal identity?
A1 An unincorporated organisation is a viable option and can do anything any other type of organisation can do. In particular it can employ staff. However the question is also an illustration of the advantages of operating on a corporate basis. An unincorporated organisation has, in technical terms, no legal identity of its own. The employer of its staff therefore, is not the organisation as a legal entity, but the members of the board of management personally. Similarly, the members of the board of management individually enter into all contracts of an unincorporated association, including leases. It is this that can lead to potential personal exposure if liabilities arise on, for example, employment contracts general contracts and leases, or in relation to service provision and there are insufficient assets of the organisation to meet those liabilities. In those circumstances, because, technically, the individuals are the contracting parties, claims may be made against them personall
Related Questions
- Can individuals on Management Committee represent their employing organisation (e.g. voluntary organisation or statutory agency)?
- How does Asthma UK ensure that its staff and volunteers are qualified to run an organisation funded by voluntary donations?
- Can Management Committee members volunteer for the organisation in other capacities?
