Volunteer or Worker? EAT Rules Paid Activities Can Create Worker Status
A recent Employment Appeal Tribunal (EAT) ruling has provided a crucial clarification for organisations that use volunteers, highlighting that paying a volunteer for specific activities can create 'worker' status and grant them employment rights.
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Background Law: Employee, Worker or Self-Employed?
There are three main statuses in employment law: self-employed, worker, and employee. Those who are self-employed have the fewest employment rights, workers have more (such as holiday pay and rest breaks), and employees have the most comprehensive rights.
Determining an individual's status is complex and depends on the reality of the working relationship. Case law highlights several key factors, including:
- Personal Service: Is the individual required to perform the work personally?
- Control: Does the organisation control what, how, when, and where the work is done?
- Mutuality of Obligation: Is the organisation obliged to offer work, and is the individual obliged to accept it?
The Facts of the Case: Groom v The Maritime and Coastguard Agency
Mr Martin Groom was a volunteer Coastal Rescue Officer with the Coastguard Rescue Service (CRS). After his membership was terminated following a disciplinary hearing, he brought a claim for the right to be accompanied at that hearing – a right only available to workers and employees.
The initial Employment Tribunal (ET) found he was not a worker because his volunteer agreement did not constitute a contract. However, Mr Groom appealed to the Employment Appeal Tribunal (EAT).
The EAT's Key Ruling
The EAT overturned the ET’s decision in part. It concluded that **a contract was formed every time Mr Groom performed a specific activity in return for payment.** This meant that for those paid activities, he was a 'worker' and was entitled to worker's rights.
The Conclusion for Employers
This case illustrates a critical risk for organisations that use volunteers. Even if an individual is engaged under a volunteer agreement, if you pay them for carrying out specific activities, a court may decide they have 'worker' status for those tasks.
This would entitle them to a range of rights, including holiday pay, rest breaks, and protection from unlawful discrimination. Organisations must be mindful of this risk when considering paying volunteers for any activities they perform.
Frequently Asked Questions
You can still reimburse volunteers for legitimate out-of-pocket expenses (like travel or food) without creating worker status. The risk arises when you start paying them a fee, stipend, or honorarium for the activity itself, which can be interpreted as wages for work done.
Workers have significant rights, including the right to receive the National Minimum Wage, paid holiday, protection from unlawful discrimination, and the right to not have unlawful deductions from their wages.
It is crucial to have your volunteer agreements professionally reviewed by an employment contract solicitor. We can help you structure your arrangements and payment policies in a way that minimises the risk of volunteers being classified as workers.
Do You Use Volunteers in Your Organisation?
This ruling has significant implications for charities and other organisations that rely on volunteers. Our solicitors for employers can provide expert advice to ensure you are compliant.
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