CASE UPDATE: Volunteers and employment status

Employment status is always key because it determines what rights an individual has in the workplace. In law, there are three main categories: employees, workers and the genuinely self-employed. Volunteers generally fall outside these categories because they do not work in return for pay.

Status is always decided on the facts, not the label applied by the organisation. Tribunals look at how the relationship operates in practice, particularly whether there is a requirement to perform the work personally, and whether there is a payment in return – often described as the “wage–work bargain”.

Volunteers will not normally be employees or workers if they carry out activities with no expectation of payment. However, recent case law shows that the position can become more complicated where volunteers receive payments beyond basic expenses.

In Maritime and Coastguard Agency v Groom, the Court of Appeal considered whether a volunteer coastguard qualified as a worker. Although Mr Groom could choose whether to attend callouts, when he did attend, he was subject to instructions and training requirements. Importantly, for certain activities he was entitled to claim a payment for his time, not just expenses.

The Court of Appeal held that, each time Mr Groom carried out a paid activity, a contract arose. During those periods there was a wage–work bargain: he provided work personally and the organisation was obliged to pay. This was enough to create worker status for those activities, even though there was no overall umbrella worker contract.

Key takeaway

Remember that calling someone a “volunteer” is not decisive. If volunteers receive payment for their time – even occasionally – they may acquire worker status and associated rights. Volunteer arrangements should be reviewed carefully to ensure they do not unintentionally cross that line. 

If you have and questions about the points raised here, please get in touch and see how our employment team can help on 01635 896 336 or email employment@fentonelliott.co.uk

Disclaimer: This summary is for general awareness and insight, not legal or professional advice and readers should seek professional advice for their situation.