One of the most significant employment law decisions of 2026 is the Maritime & Coastguard Agency v Groom decision, in which the Court of Appeal confirmed that individuals working under arrangements described as voluntary may still qualify as workers when they undertake paid tasks.
Facts
The individuals were engaged under arrangements that were largely voluntary
As part of those arrangements, they also carried out certain tasks for payment
The question was whether undertaking the paid activities meant that they qualified as workers and were therefore entitled to statutory employment rights
The decision
The Court found that tribunals must look beyond the label applied by the parties and consider the reality of the relationship. Where an individual agrees to carry out work in return for payment, worker status may arise in relation to those activities, bringing with it statutory rights and protections such as paid annual leave, National Minimum Wage and protection from unlawful deductions from wages.
The decision is particularly relevant for sectors that regularly rely on flexible labour, including agriculture, hospitality, leisure and the voluntary sector. As enforcement activity increases following wider employment law reforms, employers should ensure that employment status assessments are robust and regularly reviewed.
Many organisations engage individuals on a casual, ad hoc or voluntary basis and may assume that employment rights do not apply. However, this case highlights the risks of relying solely on contractual labels where individuals are receiving payment for work performed.
Steps employers should take
Review arrangements involving volunteers, casual workers, seasonal staff and others engaged on an ad hoc basis
Ensure contracts accurately reflect the practical working relationship
Consider whether individuals may qualify for worker status
Seek advice where status is unclear or there is any overlap of activities
Train managers on the risks of misclassification
Worker status remains one of the most heavily litigated areas of employment law. The Maritime & Coastguard Agency v Groom decision is a timely reminder that simply describing someone as a volunteer does not necessarily determine their legal status. Employers should focus on the reality of the arrangement and take steps now to minimise the risk of costly disputes.
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