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SUSTAINABLE MODELS OF SUPPORT SERVICES: CASE STUDY

Merseyside Employment Law Limited

FLICKR photo credit SAM SHAM


Employment law specialist lays
foundations for sustainable future
Charity that provides legal Merseyside Employment Law Limited (MEL)
used Capacitybuilders Improving Reach
advice to Third Sector funding to develop a project to provide advice
and guidance to senior staff and trustees
Organisations (TSOs) has of TSOs, and to help them improve their

taken a dual approach to employment and HR policies. Aware that


funding for this project will end in 2011, MEL
sustain its support services has set up a Community Interest Company
(CIC) and is planning to phase in charges for
beyond the end of grant this support from summer 2010. In addition,

funding MEL used a Capacitybuilders capital grant


to transform an underused room into a
resource centre where TSOs can access legal
information and other resources for free. This
‘dual approach’ aims to make MEL’s crucial
support services for TSOs more sustainable in
the long-term.
What Capacitybuilders funding was received? 2. Outreach support for TSOs with a serious
employment law issue, which can be a one-off piece
MEL received a Capacitybuilders Consortia Project
of advice or long-term support.
Programme grant of £10,000 in 2006, a further
Capacitybuilders capital grant of £24,420 in January 3. Capacity building for TSOs to develop compliant
2009, and a Capacitybuilders Improving Reach grant employment/ HR policies and procedures that are
£167,574 in April 2008. appropriate to their organisation; ranging from
training to intensive one-to-one support.
What was the money used for? The Management Committee Secretary of a small
Early Capacitybuilders funding was used by MEL to charity was very complimentary about the support the
conduct a survey to assess the level and extent of case worker provided:
need amongst local TSOs for advice and support on
We had problems with an employee and it moved to
employment law, and then to analyse the results.
a disciplinary phase. I rang [case worker], he came out
The Improving Reach funding has primarily funded on two occasions, met with members of the disciplinary
an administrator and employment law case worker to panel, explained what we needed to look out for... there
deliver legal advice and guidance services to frontline were a number of exchanges with the employee, I’d
organisations between 2008 and 2011. Some senior staff draft the letter, send them to [case worker] and he would
time has been dedicated to setting up a Community suggest change. He focused on getting things right at
Interest Company (CIC). each step of the way… the service was very good.
A Capacitybuilders Capital Grant for premises MEL’s service is more comprehensive than that provided
improvement was used to transform an underused room by a solicitor, extending far beyond responding to
into a Training & Legal Resource Centre. The funding grievances or preparing for court cases. The service
paid for redecoration, a new IT system, including five improves employment/ HR policies and procedures,
desktop computers with internet access, furniture and and builds the capacity of staff to deal with employment
subscription to key legal journals and resources for problems themselves. The approach is therefore
the new library. It also paid for training equipment – preventative, addressing the cause of employment
including two laptops – meaning MEL can now deliver issues as well as dealing with employment law disputes
high quality training from their own premises, rather when they arise.
than at the offices of beneficiary TSOs.
Why did the partners opt for establishing a
What services does MEL provide and why are Community Interest Company?
they so important? Improving Reach funding for this project will come
MEL has for a number of years provided specialist advice to an end in 2011. Though the project is improving
and representation in employment and discrimination the policies and procedures of TSOs in Merseyside,
law to individuals unable to afford legal representation. evidence suggests there will continue to be demand
In their experience, TSOs were much more likely to be for affordable legal advice and guidance after funding
taken to an Employment Tribunal than public sector comes to an end. With no guarantee of further grant
agencies and companies, to a large extent because they funding for this project, MEL has decided to phase in
lacked effective HR policies and procedures. Once a charges for legal advice, guidance and training to TSOs.
grievance arose, TSOs often struggled to afford support This will allow them to cover the costs of delivery and
and advice from solicitors to resolve it. Legal proceedings generate income for MEL. The training centre is crucial
had a serious financial impact on small TSOs; and in some to these plans in that it will enable MEL to deliver (and
instances the cost of a single Employment Tribunal could charge for) professional standard training courses in-
force these organisations to fold. house.
The Improving Reach-funded project has helped address MEL has set up a Community Interest Company (CIC),
this need for TSOs in Merseyside, focusing particularly called the North West Employment Law Bureau, as a
on ‘harder to reach’ faith, rural, BME and refugee vehicle for income generating activities for a number
groups. Run by an administrator and delivered by an of reasons. It will allow MEL to generate income to re-
experienced employment law case worker, the project invest in charitable activity, through the delivery of
provides three main elements: other chargeable services even if they don’t relate to
MEL’s core mission, such as training for private sector
1. A telephone advice service on employment law
companies.
issues, where the case worker provides advice on
employment law issues.
What are the main benefits and risks of the The plan is that TSOs pay a monthly retainer fee which
training and resource centre? will cover a basic set of services including access to
training and advice, on a similar model to solicitors
The Training & Legal Resource Centre is central to
firms. There will be different levels of contract ranging
MEL’s drive towards sustainability. The new training
from a comprehensive package (covering a wide range
space allows MEL to deliver in-house training to 15-20
of services) to a more basic package of support. The
organisations at a time where previously this could only
contracts will be priced on a sliding scale with more
be delivered to a single organisation at their premises.
basic packages being cheaper and more comprehensive
MEL is already delivering around one training session
ones more expensive.
per month at the centre as part of the Improving Reach
project. There are risks associated with charging TSOs for
support, something which the Head of Legal Services
MEL is currently in the process of identifying how to
at MEL is carefully considering. The most obvious risk
gain accreditation for its training. Accreditation will
is that charges will exclude those groups with limited
make their courses much more competitive when MEL
resources from accessing any support at all. This will be
begins charging. It will also put MEL in a better position
partially addressed by having different levels of contract;
to attract private and public sector organisations to
groups with limited resources could opt for the cheapest
their employment law/HR courses, therefore generating
type of contract.
additional income.
Nevertheless, even with the introduction of charges,
MEL has already been allowing community groups to
the service MEL offers will be significantly cheaper
use the new space for meetings, but in time they plan
than private sector competitors. The Head of Legal
to bring in charging, at least for some users. The aim
Services has calculated that a MEL case worker costs
is to hire out the space for various types of purpose,
around a third of the amount charged by a solicitor for
including training providers looking for a well-equipped,
representing clients at an Employment Tribunal.
professional training space.
There are also risks for MEL in entering ‘the employment
The one key risk that MEL has had to manage is that
law advice market’. MEL will have to compete with
the Training & Legal Resource Centre distracts MEL staff
other organisations who charge and this will place
from their ‘day job’. As MEL doesn’t receive revenue
greater demands on MEL to demonstrate (e.g. through
funding for the centre there are no dedicated staff who
accreditation) to potential clients that they provide a
manage it. MEL has struggled to provide the staff time
high quality service that is comparable to competitors.
they would like to market the venue and provide advice
to groups on how to use the resource library. As a result,
Key learning points
the centre hasn’t been used as much as it could have,
though it is still used by TSOs on a regular basis. • Improvements to premises can provide the facilities
required to bring in charges for training
What are the main benefits and risks of • Resource centres need staff to dedicate time to
charging for legal / HR advice? running them if the maximum number of groups are
MEL plans to phase in charges for advice and support to benefit
of TSOs from August 2010. By January 2011, it is
• An analysis of competitors’ charges is crucial to
anticipated that charging will cover the costs of delivery,
designing a competitive system of charging and rates
and possibly generate some income to re-invest in MEL.
Over the long-term, this should help provide a regular • A Community Interest Company can provide an
income to sustain MEL’s charitable mission of providing effective ‘vehicle’ for generating earned income,
free legal advice to those unable to afford it. which is separate from (but invests in) the charitable
purpose of the original organisation

This case study was prepared by Shared Intelligence for the Sustainable Models of Support Services report, which was
funded by Capacitybuilders. To read more case studies like this please visit: www.improvingsupport.org.uk

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