Legal & money issues

^{Running a club > Legal & money issues}

OFSTED registration - Finding funding - Forming a management committee

There is a wide range of legal issues to consider when setting up and running an out of school club. Everyone has a duty to keep to the 'law of the land' and, if relevant, to the 'law' of their organisation's or business's governing document. The Children Act 2004 is a key piece of legislation underpinning the Every Child Matters: Change for Children programme - full details can be found at www.dfes.gov.uk/everychildmatters.

The aim of Every Child Matters is to improve the outcomes for all children and to narrow the gap between those who do well and those who do not. Childcare providers, including out of school clubs, are now inspected by Ofsted against outcomes based on those in Every Child Matters. These are; helping children to be healthy, protecting children from harm or neglect and helping them to stay safe, helping children enjoy and achieve, helping children make a positive contribution to the provision (Out of School Club) and the wider community, and organisation - how well the out of school club is led and managed.

The key areas of law you need to be aware of and comply with include the following:

Regulations for childcare providers

The Ofsted Welfare Requirements sets standards which all childcare must not fall beneath. The requirements cover many areas of caring for children including child protection, children's safety, suitability of people to care for children and manage an out of school club and the physical environment. Full details and guidance on how to comply with the requirements can be found at www.ofsted.gov.uk and at www.surestart.gov.uk.

All organisations and businesses that work with children and young people are required to undertake enhanced CRB disclosures for all staff and management committee members / owners. CRB disclosures are done by the Criminal Records Bureau, processed through a registered body. For the person in charge, owners and management committee members this is processed through Ofsted, for other staff and volunteers you will need to use one the registered bodies suggested by Ofsted. You may want to use another registered body, however there could be additional costs to consider. General information and answers to any questions you may have about disclosures is available on the disclosure website www.disclosure.gov.uk.

Taxation
You need to consider your responsibilities and liabilities regarding income tax, corporation tax, business rates, VAT and payroll taxes. Information on taxation is available at www.hmrc.gov.uk.

Insurance
All childcare providers will need some insurance cover. Some, for example employers liability (and public liability if you are registered with Ofsted) are required by law. Others are not legally required but are still necessary because they provide protection for your business, your customers and the owners or committee members.

Health & Safety
There is a large, complex body of statutory regulation concerning health & safety in the workplace of which, as a childcare business, you need to be aware. For general information, including free publications on good practice in health & safety, reporting accidents and risk assessments contact the Health & Safety Executive at www.hse.gov.uk.

Employment
If you employ staff, you need to be aware of the statutory duties imposed by the legislation regarding their employment. The Advisory, Conciliation and Arbitration Service, ACAS, provides sample employee documents and guidance on all employment matters at www.acas.org.uk.Information on employment legislation is available from the DTI - Department of Trade & Industry at www.dti.gov.uk.

Data Protection
As all registered childcare providers are required under the National Standards to keep records, you should register under the Act or comply with the principles. Information about the Act is avaible from the Office of the Information Commissioner at www.dataprotection.gov.uk.

Governance/Legal status
There are differing requirements on childcare organisations dependent on the type of management structure that you adopt. In general, limited companies and charities will have a greater responsibility than, say, partnerships or sole traders. The Business Development Team can assist you with what options are available, whether you are a new or an existing organisation or business.

Documentation
In order to comply with Ofsted certain records must be kept on the premises and most must be retained for a period of two years from the date of the last entry. Records that relate to child protection must be kept in a secure place until the child reaches the age of 25 years. In addition you need to be aware of the records that you are required to keep by law - some for up to 40 years. For more guidance on keeping and storing records contact your Business Development Officer at OSN - they will have access to templates for some documentation that can help you to ensure your club complies to legislation. A full list of the documentation required by Ofsted is available on the Ofsted web site at www.ofsted.gov.uk.

Other legal responsibilities
Many areas of law will affect your organisation or business and how you operate. In particular you need to understand the requirements of the Disability Discrimination Act and your responsibilities for good practice in financial management. Many out of school clubs receive funding to set up the business or for sustainability. This funding is usually agreed and given under the requirements of a service level agreement, a form of contract that is binding between the funder and the recipient. Your legal obligations and responsibilities will vary dependent on the governance/legal status of the organisation. You may also have other legally binding contracts, such as for the premises you use and contracts with parents or other agencies to provide places for children at your out of school club.

Laws and regulations change frequently and you should always take professional or legal advice if you have particular concerns regarding any issue.

Your Business Development Officer at OSN can help with sign-posting you to the relevant organisations and agencies that provide information, guidance and assistance in legal matters. Your insurance policy may also provide access to free legal advice.

This section includes information from It's the Business toolkit for childcare providers, a limited number of copies are available for out of school clubs in Sheffield through the Business Development Team at OSN. It is also now available on the Surestart website, business support section, at www.surestart.gov.uk.

Relevant business planning tools from OSN

Accident report form (PDF 10KB)
This form can be used to record all accidents that occur on your premises - a legal requirement under OFSTED regulations.

Health & safety - Children Act 1989 (PDF 20KB)
A health and safety checklist to ensure your premises and procedures comply with the Children Act 1989.

Registration form (PDF 16KB)
All children attending the club must be registered.

Parent contract (PDF 30KB)
Ensuring playworkers and parents are clear on their responsibilities.

Medical form (PDF 24KB)
An official record for each child detailing any allergies or medical conditions.

Risk assessment for a day visit (PDF 11KB)
Plan day visits in advance and stop accidents before they happen.

Outings and visits consent form (PDF 13KB)
You will be held responsible for children's safety on trips or outings - make sure you have a signed consent form for every child on the trip.

Go to OSN Business Toolkit >

Other Useful Links

Health and Safety Executive - www.hse.gov.uk
Criminal Records Bureau - www.crb.gov.uk
Ofsted - www.ofsted.gov.uk
Education Act Legislation details - www.legislation.hmso.gov.uk/acts