Charities are increasingly falling victim to a new and worrying trend - disaffected ex-volunteers arguing that they have employment rights and, as such, that they enjoy protection from unfair dismissal.

The chief executive of the RNLI - an organisation currently facing five such claims - has, as a result, recently warned of the need to ensure there is a clear demarcation between volunteers and employees.

The RNLI's cases all involve lifeboat volunteers who were asked to leave as a result of difficulties working with other volunteers.

All five are now arguing they were employees of the RNLI, they were unfairly dismissed and have the right to be reinstated.

The currently accepted position is that, while there is clearly a legally enforceable contract between an employer and an employee, the arrangement between a volunteer and charity is different.

If an employee simply left without warning, then he would risk a breach of contract claim, whereas there would be no such restriction on a volunteer.

This proposition is likely to be challenged in the course of the RNLI litigation.

The obvious difference between employees and volunteers is that employees receive payment for their services and volunteers do not.

This distinction initially appears fundamental, until it is remembered that the law does not define what a 'volunteer' is and that the absence of pay is not of itself inconsistent with an employment relationship. For unfair dismissal purposes, a 'contract of employment' is defined simply as 'a contract of service or apprenticeship... whether oral or in writing'.

Voluntary organisations need to see this issue coming.

Claims such as those brought against the RNLI are likely to increase.

An organisation which cannot point to a professional and organised method of managing its volunteers and which does not have terms of appointment which clearly demonstrate that the individual is not an employee is likely to face difficulties in mounting a successful defence.

* Stephen Elliott is a solicitor in the employment team of North-East law firm Ward Hadaway. He can be contacted on 0191-204 4000 or by email at stephen.elliott@wardhadaway.com

Published: 15/02/2005