What makes volunteering different from paid employment – and why does it matter?

Volunteers are the lifeblood of charities up and down the country. They play a crucial role in many important aspects of charity work, and without them many charities would be unable to deliver on their mission.  

Research has shown that volunteers derive a wide range of personal, social and professional benefits from volunteering. Volunteering can help improve people’s physical and mental health, boost their confidence, and help them learn new skills, while also giving back to their communities.

Many volunteers enjoy the fact that volunteering is refreshingly unlike paid work. Volunteering offers flexibility, and the opportunity to work on meaningful causes people feel passionately about, outside the constraints of paid employment.

But what, exactly, makes volunteering different from paid employment – and why does it matter?

Volunteers vs employees and workers

There is no single statutory definition of a volunteer, but a volunteer can be understood as someone who engages, on an unpaid basis, in an activity which aims to benefit some third party other than a close relative.

Volunteers do not work under a contract – and, while most volunteers are extremely committed, they do not have to turn up if they don’t want to (even if they may be expected to or generally volunteer at particular times).

Volunteers are not entitled to be paid, beyond reimbursement for travel and other out of pocket expenses.

An employee, on the other hand, works under a contract of employment, and is obliged to carry out work in return for a salary. If an employee does not attend work and does not have a valid reason, this will usually amount to a breach of contract, and may lead to disciplinary action, up to and including dismissal.

Workers are an additional category of individuals protected under employment law. Again, they work under a contract (although this does not have to be a contract of employment). Typically, their work is more casual than employees, and they're not typically offered regular or guaranteed hours.

Employment rights and obligations

Generally speaking, rights and obligations under employment law apply only to employees and workers and do not apply to volunteers. Employees enjoy the full suite of employment protections, while workers benefit from more limited rights, such as the right to National Minimum Wage, paid holiday and protection from discrimination.

While rights and obligations under employment law do not generally apply to volunteers, there are certain minimum legal protections for volunteers, including under health and safety law.

Getting the arrangements right 

Given the fundamental difference in nature of the relationship with employees and workers on the one hand, and volunteers on the other, it is important to ensure that volunteering arrangements correctly reflect the intention of the parties and there isn’t a blurring of lines, which isn’t in anyone’s interests.   

A recent case in the Employment Appeal Tribunal (EAT) (Groom v Maritime and Coastguard Agency) – see our update here – provided a salutary reminder of the importance of getting the arrangements with volunteers right. In that case, the payment of a specified sum to compensate volunteers for disruption to their personal lives and employment, and a requirement to undertake volunteer activities (involving a high level of responsibility), meant that a “volunteer” was in fact classified as a worker.

While charities and volunteers alike will want some structure to the arrangements, to help make the most of the volunteering arrangement, there is a balance to be struck, and steps can be taken to minimise the risk of volunteer arrangements being seen as contractual.

Top tips

Some “top tips” for ensuring a genuine volunteering relationship without inadvertently creating a contract are as follows:

• Don’t pay volunteers (beyond genuine out-of-pocket expenses). Ideally, expenses should be reimbursed against receipts. Paying a flat rate for expenses can risk being seen as income.
• Avoid, or at least minimise, perks that could be seen as consideration. A small, one-off gift as a token of appreciation is likely to be acceptable, but anything more could risk being seen as consideration. Particular care should be taken around providing training that goes beyond the requirements of the volunteer role.
• Don’t place too many obligations on volunteers. Time commitments can be a particularly tricky area. While many organisations would ideally want certainty around the times an individual will volunteer, imposing a fixed timetable risks being seen as a contractual obligation. It is much better to set out a preferred schedule, while making clear that the organisation is flexible.
• Avoid contractual language. Whether in writing or verbally, it is important to avoid language that sounds contractual when describing volunteer arrangements. The language used should always be couched in terms of hopes and expectations rather than obligations. Volunteer “agreements” and policies should be as short as possible and informal in style.
• Treat volunteers fairly. Perhaps the most important point of all. Fostering a positive and mutually beneficial relationship with volunteers is in both parties’ interests and makes it less likely that problems or complaints will arise.

If you have any legal queries relating to volunteering, please get in touch with Harriet Broughton, Partner, or Damian Ward, Senior Associate, in our Employment Team.