The recent decision of Grinholz v Football Federation Victoria Inc. has provided much needed clarity surrounding the classification of volunteers’ vis a vis employees.
Commissioner Roe considered the following indicia to determine Grinholz’s status:
- Employer’s ability to control work hours, location etc.
- Individual works solely for employer
- Employer advertises goods or services of its business
- Employer provides and maintains significant tools
- Employer determines what work can be subcontracted or delegated
- Employer has the right to suspend or dismiss
- Employer deducts income tax
- Individual is paid a periodic wage and receives leave entitlements
- The work does not involve a profession, trade or distinct calling.
- The work of the individual creates goodwill for the business
- The individual does not spend a significant portion of their pay on business expenses
Ultimately, the Commission decided that Grinholz was a volunteer because the “essential character of the arrangement is that of a volunteer and not an employee” because “in cases of not-for-profit community organisations where there are many volunteers involved, different considerations will need to be balanced to derive the essential character of the relationship.”
Critically, the existence of a volunteer agreement helped persuade the Commission that Grinholz was a volunteer and not an employee.
If you need advice or have questions about the status of volunteers in your not-for profit organisation or wish to discuss volunteer agreements, call or email Adam Foster on (03) 9629 9629.