National Minimum Wage

Messrs G Owen & Co

National Minimum Wage Act

The new National Minimum Wage Act came into force on 1st April 1999. During the drafting stages of the bill, voluntary groups, including volunteering organisations worked hard to bring their perspective and concerns to the attention of the Government. As a result, there is a special exemption in the Act for volunteers.

The Act recognises volunteers like those placed by voluntary organisations who turn up at a set time and do set tasks and get something in return. They are exempted as voluntary workers if they work for a charity, voluntary organisation, charity shop, school, hospital etc and only get reasonable expenses or subsistence in kind or accommodation in return. They are also exempted if placed by one charity, voluntary organisation, etc with another, even if they also receive reasonable monetary subsistence. *

However, this exemption is only given if:

The volunteers give their time freely and are not bound by any contractual obligations to the project or the placement organisation.

The volunteers have been placed by a charity and are on placement with a charity, voluntary organisation, associated fundraising body or statutory.

In order for volunteers to be exempt, all parties must ensure that these criteria are observed in practise.

It is essential that we are explicit about the purely voluntary nature of volunteers groups. The volunteers are not workers, carers, staff, or employees. While they may have committed to volunteering in your project for a certain period of time, this was a choice freely made. They are not on contract and, unlike the project staff they work alongside, they are free to leave the project should they so choose.

The Act states that no monetary payments of any description can be made beyond those which are actually incurred on the project and which provide necessary subsistence. Messrs G Owen & Co suggests you to pay the volunteer weekly allowance and food allowance or meals, together with out-of-pocket expenses, such as transportation to the project, (and, if applicable accommodation). The payment of higher rates or special payments to volunteers could be seen as ‘unreasonable monetary subsistence and may lead to legal challenge. The payment of higher rates may make your project liable under the Act and could damage the reputation of your group.

The Act also considers additional in-kind benefits such as training. For the purposes of the Act and in order to keep a non-contract environment only training relating to the volunteers’ ability to perform their voluntary role is acceptable.

Messrs G Owen & Co are very pleased that the Act makes special provision for full-time volunteers and in the process recognises the important contribution which they are making to meet social need. The National Minimum Wage Act does change the legislative environment in which we are working and it is important we understand this.

If you have any further questions, please obtain a free copy of A Detailed Guide to the National Minimum Wage published by the DTI from them direct.