As an employer, it is important to know when unpaid work is legal. The Employment Court's recent decision in the Gloriavale case highlights the importance of knowing when unpaid work is legal, given it was unclear whether the Gloriavale church's workers were volunteers or employees. Generally, a worker is likely an employee if payment is expected. Nevertheless, this article clarifies in what circumstances unpaid work is legal in NZ.
Volunteers should not expect payment or receive payment for their work since they are not employees. Consequently, it is important that you make clear to your volunteers from the outset that the worker should not expect, nor will receive, any payment or other non-monetary benefit (such as free lunches).
It is important to note that reimbursing volunteers for expenses is not considered payment. Additionally, you may also choose to give a koha or a small token of appreciation. However, providing them with any other payment or non-monetary benefit, such as lunch, may be regarded as payment.
If any disputes arise after you have made a payment, the Court may deem the volunteer an employee. As consequence, you will likely have to pay them at least the minimum wage entitlements
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