The Difference Between a Volunteer and an Employee: A Complete Guide for HR

For HR departments, the line between a volunteer and an employee isn’t always clear. And blurring that line has very specific legal and financial consequences.

If a volunteer becomes a “de facto” employee without anyone having consciously decided to do so, the company may face labor claims, labor inspections, and even penalties. Therefore, understanding precisely what distinguishes a volunteer from an employee is a matter of risk management, not just academic curiosity.

Key Differences

Nature of the Relationship

The essential difference lies in the legal relationship. An employee has an employment relationship governed by the Workers’ Statute: there is a contract, a salary, a work schedule, hierarchical subordination, and social protections. A volunteer, on the other hand, has a voluntary participation agreement governed by Law 45/2015: there is no employment contract, no mandatory salary, and the relationship is based on free participation in a cause.

This difference in nature determines everything else: rights, obligations, protections, taxation, and liabilities.

Voluntary Participation vs. Employment Obligation

An employee has a contractual obligation to provide services in exchange for compensation. A volunteer may cease their activity, reduce their commitment, or refuse tasks without employment consequences, provided they do so with the agreed-upon advance notice and without causing unjustified harm. This freedom is structural, not optional: if a “volunteer” cannot refuse to work, they are not a volunteer.

Rights of Volunteers vs. Employees

Labor Rights

Employees enjoy all the labor rights set forth in the Workers’ Statute: minimum wage, maximum legal working hours, paid vacation, sick leave or family care leave, the right to severance pay, and protection against unfair dismissal.

Volunteers have none of these rights. They receive no salary (or a voluntary stipend that is not comparable), have no right to paid vacation, and are not entitled to severance pay. Their protections are of a different nature: accident insurance, civil liability coverage, and the right to be informed and treated with dignity.

Social Protections

Employees make Social Security contributions, which entitle them to unemployment benefits, a pension, and benefits for temporary and permanent disability. Volunteers do not make Social Security contributions as such for their volunteer work. If a volunteer is also an employee (at another company), their employment-related contributions are separate from their volunteer work.

Vacation and Leave

Employees are entitled to a minimum of 23 working days of paid annual leave, plus leave for marriage, the death of a family member, etc. Volunteers are not entitled to any of these benefits in the context of their volunteer work. What they may have is flexible hours agreed upon with the organization.

Compensation: Do Volunteers Get Paid?

No Salary in Traditional Volunteering

Pure volunteering does not involve a salary. This is inherent in its definition: if there is financial compensation equivalent to a salary and a relationship of subordination exists, then it constitutes an employment relationship. Law 45/2015 is explicit on this point.

However, the law does allow organizations to cover expenses related to the activity: transportation, meals, and materials. This is not remuneration; it is reimbursement of expenses, and it is not taxable if it is reasonable and properly documented.

Hybrid Models: Stipends and Paid Volunteering

There is what is known as “paid volunteering,” in which the volunteer is paid an amount that can range from a small stipend to more significant sums in the case of specialized skills-based volunteering. This model is legal, but care must be taken not to cross the line into an employment relationship.

The typical range in Spain for paid volunteering is between €15 and €75 per hour, depending on the type of activity. To learn more about this: Can I earn money by volunteering?

Obligations and Responsibilities

Of the Volunteer

The volunteer agrees to complete the agreed-upon tasks within the established deadlines, to maintain confidentiality regarding the information to which they have access, to respect the organization’s rules, and to provide sufficient advance notice if they need to modify or end their participation.

Employee

Employees have more formal obligations: to adhere to the work schedule, follow instructions from their superiors, not disclose confidential information, and not engage in unfair competition. Their obligations are outlined in the employment contract and the Workers’ Statute, and failure to comply may result in disciplinary termination.

The Organization’s Responsibilities

Toward the employee: pay the agreed-upon salary, make Social Security contributions, respect labor rights, and provide safe working conditions. Toward the volunteer: provide mandatory accident and liability insurance, clearly outline the role and tasks, treat the volunteer with dignity, and not demand more than what was agreed upon.

Taxation and Contributions

Income Tax on Volunteer Work

Unpaid volunteer work does not generate income from employment and, therefore, is not subject to personal income tax. Expenses covered by the organization (transportation, meals) are also not taxable if they are reasonable and properly documented. In paid volunteering, the compensation is taxable as income from employment, regardless of whether it is called a “stipend” or “allowance.”

Social Security Contributions

Volunteers do not make Social Security contributions in connection with their volunteer activities. This is regardless of whether they are also employed by another company—in which case they make contributions based on that employment relationship. Volunteering neither alters nor supplements employment-related contributions.

When to Use Each Model

When Volunteering Is the Appropriate Model

Volunteering is appropriate when: the activity is one-time or supplementary (not ongoing or a substitute for employment), the participant engages in it voluntarily for personal or professional reasons, the organization can handle the onboarding agreement and mandatory insurance, and the organization is not structurally dependent on that person for its basic operations.

When to Consider Hiring

If an organization needs someone on an ongoing basis, with a fixed schedule, for tasks essential to its operations, the correct approach is employment, not volunteering. Using volunteers to fill permanent employment needs is illegal and ethically questionable—and labor courts are recognizing this with increasing clarity.

Frequently Asked Questions

What is the difference between a volunteer and an employee?

The main difference is legal: an employee has an employment relationship (with a contract, salary, and social security contributions), while a volunteer has a voluntary participation agreement (with no mandatory salary, no social security contributions, and the freedom to leave). Their protections differ, but both are legally regulated.

Can a company use volunteers instead of employees to reduce costs?

Not legally. The law expressly prohibits volunteering from replacing paid employment. If a company does this, it exposes itself to penalties from the Labor Inspectorate and to labor claims from the affected “volunteers,” who could seek recognition of an employment relationship with all its legal consequences.

Is volunteering an employment relationship?

No. Although it may appear to be work, volunteering does not constitute an employment relationship if it meets the criteria of Law 45/2015: voluntary participation, no substitution for employment, and the absence of financial compensation equivalent to a salary.

Are you designing a volunteer program and want to get it right from the start?
Maat Impact includes templates for volunteer agreements, an insurance module, and compliance documentation to ensure your program is solid from day one.

→ Design your volunteer program structure with Maat Impact