On this page
- Introduction
- Employee, contractor or volunteer?
- Consumer representatives
- Common questions about managing people
Introduction
Not-for-profit organisations rely on a range of people, including employees, independent contractors, volunteers and consumer representatives. Understanding the legal status of these relationships is important because different legal rights and obligations may apply.
Our resources can help your organisation understand the legal framework that applies to different types of workers and identify issues when they arise.
Employment and volunteer-related laws can be complex and may change over time, so the information on these pages should not replace advice from a lawyer who specialises in employment law. If your organisation is facing a workplace issue, it is often best to seek specialist advice as soon as possible.
Employee, contractor or volunteer?
At times, it can be difficult to determine whether a person is an employee, an independent contractor or a volunteer. The correct classification is important because different legal rights, obligations and protections can apply. If you are unsure about a particular arrangement, it may be appropriate to obtain legal advice.
Our guide can help you determine whether a person is likely to be an employee, independent contractor or volunteer, and understand the legal obligations that may apply.
The guide includes information about:
- the differences between volunteers, employees and independent contractors
- the legal obligations organisations owe to different types of workers, and
- some of the consequences of incorrectly classifying a worker
Consumer representatives
A consumer representative is a person engaged by an organisation to provide advice, feedback or lived-experience perspectives about its services, programs or activities. Depending on the circumstances, a consumer representative may be a volunteer, employee or independent contractor.
Our guide on payments to consumer representatives includes information about:
- what a consumer representative is
- how to determine whether a consumer representative is a volunteer, employee or independent contractor
- legal issues that can arise when making payments to consumer representatives, and
- taxation, Centrelink and other issues that consumer representatives should understand
Common questions about managing people
Does it matter what we call a worker?
Yes. Organisations should accurately describe whether a person is engaged as a volunteer, employee or independent contractor.
However, a person's legal status is not determined by the label used in an agreement. A court or tribunal will consider the nature of the relationship, including any agreements between the parties and how the relationship operates in practice.
For more information, see our guide Employee, contractor or volunteer?
Do volunteers get paid?
Volunteers generally provide their services without expectation of payment. Organisations can usually reimburse volunteers for reasonable out-of-pocket expenses they incur while volunteering.
Paying a volunteer for their time, attendance or services may affect their legal status and could mean they are no longer treated as a volunteer for some legal purposes. Before making payments, organisations should consider whether the arrangement could create an employment or contractor relationship.
For more information, see our guide Employee, contractor or volunteer?
Can we pay consumer representatives?
Yes. Organisations may pay consumer representatives, but the payment can affect whether the person is legally characterised as a volunteer, employee or independent contractor.
The nature of the arrangement, the work performed and the way the person is paid are all relevant. Different legal obligations can apply depending on the person's legal status.
For more information, see our guide Payments to consumer representatives.
Do employment laws apply to not-for-profits?
Yes. Not-for-profit organisations that engage employees are generally subject to the same employment laws as other employers.
These laws may cover matters such as minimum pay rates, leave entitlements, workplace rights, workplace health and safety, discrimination and unfair dismissal. The obligations that apply will depend on the nature of the working relationship and the organisation's circumstances.
For more information, see our guide Employee, contractor or volunteer?
Can a not-for-profit pay its members?
In some circumstances, yes.
A not-for-profit organisation may be able to pay a member who provides services to the organisation. Depending on the circumstances, the member may be engaged as an employee, independent contractor or volunteer. A member may also be engaged as a consumer representative, in which case their legal status will still depend on the nature of the arrangement. A not-for-profit may also reimburse members for approved expenses.
However, there are often constitutional, governance, regulatory and tax considerations that apply. Organisations should check their governing document and any legal obligations that apply before making payments to members.
For more information, see our guides Employee, contractor or volunteer? and Payments to consumer representatives.
What are our legal obligations to volunteers?
Organisations owe legal duties to volunteers, although those duties are not generally the same as those owed to employees.
Depending on the circumstances, organisations may have obligations relating to workplace health and safety, discrimination, child safety, privacy, insurance and volunteer management. Organisations should also have appropriate policies and procedures to support volunteers and manage risk.
For more information, see our national volunteering guide.
How do discrimination laws apply to not-for-profits?
Anti-discrimination laws can apply to many activities carried out by not-for-profit organisations, including employment, volunteering and the provision of services.
The laws that apply, and any exemptions that may be available, vary between jurisdictions and depend on an organisation's activities. Organisations should take reasonable steps to create inclusive environments and avoid unlawful discrimination.
For more information, see our guide to workplace behaviour, which covers discrimination.
The content on this webpage was last updated in September 2026 and is not legal advice. See full disclaimer and copyright notice.
