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Volunteer or Employee?
Volunteer Management in a Nutshell


                             Quiz
A Definition: Volunteering

 ‘Volunteering is the commitment of time and energy
 for the benefit of society and the community, the
 environment, or individuals outside (or in addition
 to) one’s immediate family. It is unpaid and
 undertaken freely and by choice.’*




*’The Volunteering Strategy for Northern Ireland’, May 2011
Contract of employment
This is not a piece of paper, but a relationship between an individual and an
organisation where there is…


OBLIGATION:                    Employer - obligation to provide work.
                               Individual - obliged to do the work.

CONSIDERATION:                 Individual receives :
In return for work or           remuneration (payment)
services.
                                consideration (something else of
                               material value)

INTENTION:                     A legally binding contract is
                               intended/inferred.
Volunteer or Employee?
Now that you’ve refreshed your memory on the definitions of volunteering and a
contract of employment – why not try out the quiz?

Under employment law an individual is deemed an ‘employee’ not a ‘volunteer’ if
a contract of employment is seen to exist.

The following cases are examples of how the relationship between an individual
and organisation has been scrutinised and defined by a court of law.

Can you decide what the outcome for each case is?

Just click on Volunteer or Employee to make your choice and find out if you
agree with the decision.

CLICK HERE START
CHAUDRI VS IMIGRANT ADVICE SERVICE 1997

   Mrs Chaudri was paid a flat rate of ‘expenses’ of £25 per
    week, later increased to £40 per week.
   Mrs Chaudri lived nearby and walked to her voluntary work
    and had lunch at home.
   Mrs Chaudri received ‘expenses’ even when she was sick or
    on holiday.




Volunteer or Employee?
Mrs Chaudri was an EMPLOYEE
She received consideration which was not related to out-of-pocket
expenses.

A tribunal decided that she was an employee and allowed her case to be
heard. The ruling was based on the facts that:

Mrs Chaudri incurred no expenses during the course of her
volunteering as she lived nearby, walked to the office and had lunch at
home;

Nevertheless she received a flat rate of £25 per week to cover
expenses;

This was increased to £40 and she was paid expenses when she was
sick or on holiday.

The ‘expenses’ payments are clearly consideration. Regularly paying
these amounts, including holidays and sick leave, meant they became
wages for employment.
ARMITAGE VS RELATE 1994

   Mrs Armitage was obliged to contribute a minimum of 600
    hours work.
   She was required to repay training costs if the minimum 600
    work was not completed.
   Relate operated a practice of offering volunteers the
    opportunity of paid work after 3 years.




Volunteer or Employee?
Mrs Armitage was an EMPLOYEE
The ruling was based on the facts that:

Relate conducted a rigorous training process including a day long
residential. Mrs Armitage was required to refund part of the training
expenses if she did not provide a minimum of 600 hours of counselling;

Mrs Armitage was required to provide a minimum amount of hours each
week;

After three years of training volunteer counsellors could become paid
employees or hired for sessional work.

The tribunal based its ruling largely on the requirement to repay training,
the obligation to work a minimum of 600 hours and the fact the training led
to paid work. This was seen as a clear case of the exchange of something
of value i.e. consideration.

There was an obligation to do the work and she received consideration.
She was therefore able to sue Relate for racial discrimination.
GRADWELL VS CVS BLACKWELL, Wyre & Fylde 1997

   Volunteer signed a written agreement.
   There was no minimum time commitment or obligation to
    attend meetings or training.
   Out-of-pocket expenses were reimbursed




Volunteer or Employee?
Gradwell was a VOLUNTEER
The tribunal decided that an employment contract had not been created
based on the fact that although volunteers all signed a written agreement:

Volunteers were not obliged to attend training and monthly meetings.

There was no other minimum time commitment required of volunteers.

Volunteers were reimbursed for actual expenses only.

The tribunal decided that repayment of genuine expenses and the
provision of training did not amount to a ‘consideration’. They also decided
that even though the agreement was written it was not intended to be
legally binding.

No consideration was paid for the work.

There was no intention that the agreement should be legally binding.
MURRAY VS NEWHAM CITIZEN’S ADVICE BUREAU 2000 (EAT)

Mr Murray had appealed a decision that his volunteering did not
amount to a contract of employment. He had signed a written
agreement which set out a range of obligations and commitments
on both parties.

The agreement included:
Time commitments of a minimum time period;
Time periods to complete basic training;
Grievance and Disciplinary process;
Expenses;
Commitments such as the process for claiming holidays.



Volunteer or Employee?
Mr Murray was an EMPLOYEE
In this case the Appeals Tribunal found in his favour on this issue. The
decision was based on a written agreement which in the view of the
tribunal set out a range of obligations and commitments on both
Parties.

The agreement included:

Time commitments of a minimum time period;
Time periods to complete basic training;
Grievance and Disciplinary process;
Expenses;
Commitments such as the process for claiming holidays.

The Tribunal looked at the overall relationship between the organisation
and the volunteer and concluded that while there was no one significant
issue as in the Relate or the Migrant Advice Service case there was an
agreement between the two parties which was enough to create a
contract of employment.
To find out more:

visit the Volunteer Now website and download the free
‘Volunteers and the Law’ information sheet here


or click here and visit the Volunteer Now Training Calendar
to book a place on the next ‘Equality Law, Best Practice &
Volunteering’ training course
Volunteer Now
                           129 Ormeau Road
                            Belfast BT7 ISH
                            T: 028 9023 2020
                         www.volunteernow.co.uk
                           ▌Belfast ▌Broughshane ▌Enniskillen ▌Newry ▌

Reasonable precautions have been taken to ensure information in this training is accurate. However, it
is not intended to be legally comprehensive; it is designed to provide guidance in good faith without
accepting liability. If relevant, we therefore recommend you take appropriate professional advice before
taking any action on the matters covered herein. Charity (Inland Revenue) No. XT22896. Company
Limited by Guarantee No. NI602399. Registered in Northern Ireland.

These materials may not be reproduced for any purpose without the express permission of
Volunteer Now.

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Volunteers and the UK law quiz

  • 1. Volunteer or Employee? Volunteer Management in a Nutshell Quiz
  • 2. A Definition: Volunteering ‘Volunteering is the commitment of time and energy for the benefit of society and the community, the environment, or individuals outside (or in addition to) one’s immediate family. It is unpaid and undertaken freely and by choice.’* *’The Volunteering Strategy for Northern Ireland’, May 2011
  • 3. Contract of employment This is not a piece of paper, but a relationship between an individual and an organisation where there is… OBLIGATION: Employer - obligation to provide work. Individual - obliged to do the work. CONSIDERATION: Individual receives : In return for work or  remuneration (payment) services.  consideration (something else of material value) INTENTION: A legally binding contract is intended/inferred.
  • 4. Volunteer or Employee? Now that you’ve refreshed your memory on the definitions of volunteering and a contract of employment – why not try out the quiz? Under employment law an individual is deemed an ‘employee’ not a ‘volunteer’ if a contract of employment is seen to exist. The following cases are examples of how the relationship between an individual and organisation has been scrutinised and defined by a court of law. Can you decide what the outcome for each case is? Just click on Volunteer or Employee to make your choice and find out if you agree with the decision. CLICK HERE START
  • 5. CHAUDRI VS IMIGRANT ADVICE SERVICE 1997  Mrs Chaudri was paid a flat rate of ‘expenses’ of £25 per week, later increased to £40 per week.  Mrs Chaudri lived nearby and walked to her voluntary work and had lunch at home.  Mrs Chaudri received ‘expenses’ even when she was sick or on holiday. Volunteer or Employee?
  • 6. Mrs Chaudri was an EMPLOYEE She received consideration which was not related to out-of-pocket expenses. A tribunal decided that she was an employee and allowed her case to be heard. The ruling was based on the facts that: Mrs Chaudri incurred no expenses during the course of her volunteering as she lived nearby, walked to the office and had lunch at home; Nevertheless she received a flat rate of £25 per week to cover expenses; This was increased to £40 and she was paid expenses when she was sick or on holiday. The ‘expenses’ payments are clearly consideration. Regularly paying these amounts, including holidays and sick leave, meant they became wages for employment.
  • 7. ARMITAGE VS RELATE 1994  Mrs Armitage was obliged to contribute a minimum of 600 hours work.  She was required to repay training costs if the minimum 600 work was not completed.  Relate operated a practice of offering volunteers the opportunity of paid work after 3 years. Volunteer or Employee?
  • 8. Mrs Armitage was an EMPLOYEE The ruling was based on the facts that: Relate conducted a rigorous training process including a day long residential. Mrs Armitage was required to refund part of the training expenses if she did not provide a minimum of 600 hours of counselling; Mrs Armitage was required to provide a minimum amount of hours each week; After three years of training volunteer counsellors could become paid employees or hired for sessional work. The tribunal based its ruling largely on the requirement to repay training, the obligation to work a minimum of 600 hours and the fact the training led to paid work. This was seen as a clear case of the exchange of something of value i.e. consideration. There was an obligation to do the work and she received consideration. She was therefore able to sue Relate for racial discrimination.
  • 9. GRADWELL VS CVS BLACKWELL, Wyre & Fylde 1997  Volunteer signed a written agreement.  There was no minimum time commitment or obligation to attend meetings or training.  Out-of-pocket expenses were reimbursed Volunteer or Employee?
  • 10. Gradwell was a VOLUNTEER The tribunal decided that an employment contract had not been created based on the fact that although volunteers all signed a written agreement: Volunteers were not obliged to attend training and monthly meetings. There was no other minimum time commitment required of volunteers. Volunteers were reimbursed for actual expenses only. The tribunal decided that repayment of genuine expenses and the provision of training did not amount to a ‘consideration’. They also decided that even though the agreement was written it was not intended to be legally binding. No consideration was paid for the work. There was no intention that the agreement should be legally binding.
  • 11. MURRAY VS NEWHAM CITIZEN’S ADVICE BUREAU 2000 (EAT) Mr Murray had appealed a decision that his volunteering did not amount to a contract of employment. He had signed a written agreement which set out a range of obligations and commitments on both parties. The agreement included: Time commitments of a minimum time period; Time periods to complete basic training; Grievance and Disciplinary process; Expenses; Commitments such as the process for claiming holidays. Volunteer or Employee?
  • 12. Mr Murray was an EMPLOYEE In this case the Appeals Tribunal found in his favour on this issue. The decision was based on a written agreement which in the view of the tribunal set out a range of obligations and commitments on both Parties. The agreement included: Time commitments of a minimum time period; Time periods to complete basic training; Grievance and Disciplinary process; Expenses; Commitments such as the process for claiming holidays. The Tribunal looked at the overall relationship between the organisation and the volunteer and concluded that while there was no one significant issue as in the Relate or the Migrant Advice Service case there was an agreement between the two parties which was enough to create a contract of employment.
  • 13. To find out more: visit the Volunteer Now website and download the free ‘Volunteers and the Law’ information sheet here or click here and visit the Volunteer Now Training Calendar to book a place on the next ‘Equality Law, Best Practice & Volunteering’ training course
  • 14. Volunteer Now 129 Ormeau Road Belfast BT7 ISH T: 028 9023 2020 www.volunteernow.co.uk ▌Belfast ▌Broughshane ▌Enniskillen ▌Newry ▌ Reasonable precautions have been taken to ensure information in this training is accurate. However, it is not intended to be legally comprehensive; it is designed to provide guidance in good faith without accepting liability. If relevant, we therefore recommend you take appropriate professional advice before taking any action on the matters covered herein. Charity (Inland Revenue) No. XT22896. Company Limited by Guarantee No. NI602399. Registered in Northern Ireland. These materials may not be reproduced for any purpose without the express permission of Volunteer Now.