40. How does the National Minimum Wage Act affect volunteers?

If volunteers are being paid their out of pocket expenses only, do not receive any perks, and do not have any form of obligation towards their organisation, the National Minimum Wage Act should not have any impact on them.

Problems arise if there is found to be a contract between the organisation and the volunteer. There does not have to be a written document, or even a verbal agreement for the relationship to be seen as contractual. In simple terms what a National Minimum Wage inspector will be looking for is whether the volunteer is receiving something of value (in legal language a 'consideration') in return for the tasks they are performing for the organisation.

The actual value of the consideration can be very minimal. If a volunteer receives £5 a day flat rate expenses, and spends £4.50 on food and travel, the 'extra' 50p will be seen as consideration. Even non-monetary perks will fall into this category; for example, any training not directly related to the work the volunteers are doing. (Q35…)

Volunteers paid cash for subsistence (the practice with almost all residential volunteering) do not qualify for the minimum wage if they have been recruited through another charity or similar body.