Volunteers traditionally provide support free of charge (apart from claiming expenses) for the love of the sport.  The National Minimum Wage Act 1998 ("the Act") which came into force in April 1999 changed the way clubs and governing bodies deal with their volunteers.

The aim of the Act is to ensure a minimum rate of pay per hour for adult and young workers.  The Act is drafted in such a way that volunteers in the sports sector may also be caught by its provisions.

What is a "worker"?

Although voluntary workers are expressly excluded from the protection of the Act, volunteers are not always what they appear. Many sports clubs and governing bodies make ex gratia payments or give perks such as free tickets or reduced membership fees to volunteers in recognition of this contribution. These payments may cause legal problems for clubs or governing bodies if the "volunteer" turns out to be a "worker" for the purposes of the Act.

If a volunteer's time is controlled by a club or governing body when they are "on duty", or if token payments are made to volunteers in return for work , or even as a "thank you", then, unlikely as it sounds, Employment Tribunals and Courts may classify them as "workers". What is more, there is no provision under the Act for workers to waive their rights to the national minimum wage.

How to deal with volunteers?

Clubs could find themselves inadvertently in breach of the rules by failing to treat their volunteers as workers. They should therefore ensure that anyone doing voluntary work is genuinely a "volunteer".

How can they do this? They must:

1.         decide whether a person is to be a worker or a volunteer;

2.         if the person is to be treated as a volunteer, ensure that there is no obligation on the volunteer personally to serve the club in any capacity. Election to a Committee is unlikely to create such an obligation provided that the volunteer is not compelled to attend meetings and/or carry out specific tasks themselves. If others can and do substitute for the elected Committee member, then it may be possible to demonstrate that the personal obligation does not arise;

3.         ensure the volunteer is free to withdraw his/her "services" at any time;

4.         make clear that no payment or other remuneration will be made or should be expected in return for the work. Clubs should note that the payment of bona fide expenses does not prejudice a volunteer's status. However, the expenses must be bona fide and not a disguised way of paying some remuneration to the volunteer.

In some cases, it may not be practicable for a person to be anything other than a "worker". If the club wants to rely upon a person's services, it may be sensible to treat that person as a worker and pay him/her accordingly. Of course, if a volunteer is a worker, the employing club must keep full records and accounts of time worked and monies paid, which will inevitably increase the financial and administrative burden on the organisation.