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Volunteer or Employee: Do you know the difference? Wednesday 16 th May 2012 Stephen Jenkins, Partner

Volunteer or employee - what's the difference

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Examining the legal status of volunteers in employment law terms

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Page 1: Volunteer or employee - what's the difference

Volunteer or Employee: Do you know the difference?

Wednesday 16th May 2012

Stephen Jenkins, Partner

Page 2: Volunteer or employee - what's the difference

What is a volunteer? • No single definition• CRB rules• Compact Code of Good Practice

Page 3: Volunteer or employee - what's the difference

The growth in volunteering• The third sector• The “Big Society”

Page 4: Volunteer or employee - what's the difference

Volunteer or employee: Why is it legally important? • Employment rights• Tax and National Insurance• Intellectual property

Page 5: Volunteer or employee - what's the difference

Employment rights

• Employees: unfair dismissal, redundancy• Workers: minimum wage, annual leave• Others: discrimination

Page 6: Volunteer or employee - what's the difference

Employee status • Statutory definition• Case law tests

Page 7: Volunteer or employee - what's the difference

Case law tests• Multi-factorial approach• Control• Integration• Personal service• Mutuality of obligation

Page 8: Volunteer or employee - what's the difference

Worker status• Statutory definition• Personal service• No profession or business• Mutuality of obligation

Page 9: Volunteer or employee - what's the difference

Discrimination protection• Employees• Workers• Equality Act 2010

Page 10: Volunteer or employee - what's the difference

Equality Act 2010• s83(2): self-employed, providing personal service• s55: seeking or undertaking vocational training

Page 11: Volunteer or employee - what's the difference

Volunteer case law

Migrant Advisory Service v Chaudri (1997)• Administrative work• 2 year period• 4 mornings a week• Paid £25 per week “expenses”• Paid when on holiday or sick

Page 12: Volunteer or employee - what's the difference

Volunteer case law

Murray v Newham CAB (1999)• Agreement for specific times and for minimum

period• Training provided• Basic training courses

Page 13: Volunteer or employee - what's the difference

Volunteer case law

South East Sheffield CAB v Grayson (2004)• Agreement not signed• “To clarify the reasonable expectations”• “Usual minimum commitment” of 6 hours per

week• Requirement to give as much notice as possible

Page 14: Volunteer or employee - what's the difference

Volunteer case law

Melhuish v Redbridge CAB (2005)• Requirement to observe standards• Training courses

Page 15: Volunteer or employee - what's the difference

Volunteer case law

X v Mid Sussex CAB (2010)• No formal contract• CAB volunteers often become paid employees• X argued was vocational training

Page 16: Volunteer or employee - what's the difference

Volunteer case law

Breakell v West Midlands RFCA (2010)• Paid capped allowance to compensate for lost

earnings

Page 17: Volunteer or employee - what's the difference

Practical Tips • Draft agreements carefully• Make it clear not intending to create a contract• Only pay genuine out of pocket expenses• Don’t offer benefits in kind• Reduce obligations• Talk of “expectations” not “obligations”• Don’t make job offer dependent on volunteering

Page 18: Volunteer or employee - what's the difference

Cardiff Derby Nottingham

Thank You

Page 19: Volunteer or employee - what's the difference

Contact Details

Stephen JenkinsDD : 029 2039 1730 [email protected]