What is a volunteer agreement? Explanation and use

What is a volunteer agreement? It is a written agreement between an organization and a volunteer that stipulates that someone performs unpaid work, without creating an employment contract or a self-employment assignment. The volunteer receives no wages, but at most an expense allowance or volunteer reimbursement within the tax-free limits, and does not work under a hierarchical relationship like an employee. A volunteer agreement is not legally mandatory, but it clearly sets out expectations, compensation, and insurance, and prevents the collaboration from being mistakenly viewed as an employment relationship.

The short answer

• What: an agreement regarding unpaid volunteer work, not an employment contract and not a self-employed assignment.
• Remuneration: no salary, at most expenses or a volunteer allowance within the tax-free limits.
• No authority: the volunteer does not work under employer authority like an employee.
• Insurance: specify how liability and insurance are arranged.
• Mandatory?No, but it is wise to put agreements in writing.

What is a volunteer agreement legally?

A volunteer agreement deliberately falls outside two legal concepts. It is not an employment contract within the meaning of Article 7:610 of the Dutch Civil Code, because for that there must be work, wages, and a relationship of authority. In volunteer work, wages are absent: there is no remuneration for the work, at most reimbursement of expenses or a fixed volunteer allowance. Nor is it a self-employed assignment (contract for services, Article 7:400 of the Dutch Civil Code) at a market rate, because the volunteer does not work as an entrepreneur and does not invoice.

Precisely because the dividing line with an employment contract can be thin, the volunteer agreement is useful. By stipulating that there is no salary and no hierarchical relationship, you make it explicit that the collaboration concerns volunteer work and not a disguised employment relationship.

The volunteer allowance and the maximums

A volunteer may receive compensation without it being taxed as wages, as long as it remains within the established maximums. The tax-free volunteer compensation has a maximum per hour, per month, and per year. For 2025, the guideline amounts are approximately €5.50 per hour (with a lower hourly rate for volunteers under the age of 21), up to a maximum of €210 per month and €2,100 per year. These amounts are indexed annually, so always check the current maximums for the current year with the Tax and Customs Administration.

If you stay within those limits, the reimbursement is tax-free and no employment relationship arises on the basis of the reimbursement. If you exceed them or provide market-rate remuneration for the work, the tax authorities may view the reimbursement as wages, with tax and social security contribution consequences. Reimbursement of actual costs based on receipts falls outside these maximums and is always tax-free, provided that the costs were genuinely incurred.

No hierarchical relationship

The second characteristic that distinguishes volunteer work from employment is the absence of employer authority, as is the case with an employee. Of course, practical agreements are made regarding tasks, times, and safety, but the volunteer is free to cancel, chooses for themselves whether and when to contribute, and is not subject to the instructional authority of an employer. The more an organization manages the volunteer like a regular employee, with fixed schedules and sanctions for absence, the more likely it is that the impression of an employment relationship arises.

Therefore, you establish the voluntary and non-obligatory nature in the agreement. This is not only important for tax purposes but also provides the volunteer with clarity regarding what is expected of him and what is not.

Insurance and liability

Liability is an important topic. If a volunteer causes damage or suffers damage during their work, you want to know who is responsible. Many organizations take out liability and accident insurance for volunteers. Furthermore, many municipalities have a collective volunteer insurance scheme in which volunteers automatically participate. Stipulate in the agreement how the insurance is arranged and how any potential damage will be handled, so that no ambiguity arises afterwards.

Practical example. A sports club has volunteers run the canteen and maintain the field. They receive no wages, at most an expense allowance for travel costs. The volunteer agreement states that it concerns unpaid volunteer work, that there is no hierarchical relationship, specifies which tasks are involved, and that the club has volunteer insurance. This way, everyone knows where they stand and it remains outside the scope of employment law.

Honest recommendation

For an association or foundation with a few volunteers and simple tasks, you usually do not need a lawyer. A short volunteer agreement stating that the work is unpaid, specifying the compensation (within limits), that there is no hierarchical relationship, and how insurance is arranged, suffices perfectly well in most cases.

Do seek legal assistance when working with many volunteers, when volunteers perform tasks close to regular paid work, or when you wish to provide reimbursements that approach the maximum limits. In those situations, there is a greater risk that the relationship will be viewed as employment or taxable wages, and a tailor-made agreement helps to prevent this.

Want to know more? View the volunteer agreement, read how to drafting a volunteer agreement and what it costs to have a volunteer agreement drawn up.

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