Volunteers vs Employees: The importance of understanding the difference

30th May 2025

According to Royal Voluntary Service and NCVO data, 25 million people formally volunteered in the UK in 2024, contributing £4.6 billion in productivity gains to the economy.

Volunteers’ Week, taking place from 2 to 8 June 2025, is the perfect time to celebrate their incredible contributions and to make sure charities are keeping their volunteer relationships on the right side of employment law.

Volunteers vs Employees: Key differences
Unlike employees and workers, volunteers have no contract of employment, no right to holiday pay, sick leave, or protection from unfair dismissal. Other than basic health and safety protections, they lack the legal safeguards paid staff enjoy,including Equality Act protections (although some volunteers may qualify for these as members of the organisation or service users).

However, the legal line between a volunteer and an employee can sometimes blur, creating potential risks for charities.

Can a volunteer become an employee? The risk of employment claims

Cases of volunteers successfully claiming employee status are rare but they do happen. If a charity:

  • Gives volunteers set working hours
  • Uses formal contractual wording
  • Offers regular perks or gifts that could be seen as wages
  • Requires volunteers to work in exchange for benefits

If this happens the volunteers may argue they’ve effectively become employees or workers, leading to possible claims for backdated wages, holiday pay, or even Employment Tribunal disputes.

Managing the Risks: Best practices for charities
To protect your organisation, make sure you:

  • Use a clear volunteer agreement (not a contract) to set expectations without creating binding obligations
  • Only reimburse genuine expenses—avoid perks that could look like wages
  • Keep training and development focused on the volunteer role, rather than broader professional skills
  • Avoid regular gifts, as this could suggest an employment relationship (small, one-off honorariums are usually fine)
  • Consider whether Charity Commission approval is needed for larger gifts to charity trustees
  • Where possible, keep work flexible, avoiding mandatory shifts
  • Do not use wording such as “job”, “salary”, or “contract”
  • Ensure appropriate vetting and risk assessments are carried out, especially for roles involving children or vulnerable adults

Time off for public duties
Volunteers undertaking certain public duties,such as being a magistrate, school governor, or local councillor,have the right to take time off work for these duties. Employers don’t have to pay for this time off, but they can choose to. If you’re involved in recruitment for these roles, it’s worth making sure candidates are aware of this right.

In summary

By keeping the volunteer relationship clearand making sure volunteers feel valued,charities can avoid legal risks while continuing to benefit from the vital contributions of their volunteers.

If you need any advice on employment law or charity compliance, we’re here to help, get in touch JoGreen@schofieldsweeney.co.uk.

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