I'd be concerned at what you're trying to do, laudable though it is to clear up and recycle the garden waste - are you sure that animals, both domestic and foxes, haven't polluted this waste? You could be putting yourself and your family at risk by touching it and using it.

If the tiny worms are just little red brandlings, that's no problem. If they are tiny white worms, they are just often found in poorly aerated and wet compost. I would be cautious how you use it as it could be contaminated, but why not compost it for a few months in a black bin or mixed with other compostables as that would give time for any pathogens to break down. I must admit I would probably use gloves with something of suspect origin but once it is well rotted and dug into the soil there shouldn't be any problem.