Unpaid internships: When you're entitled to minimum wage as a student or intern - amid fresh call for ban

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Many interns or working students should already be getting paid a certain amount 💵
  • Many recent graduates are still completing ‘unpaid or underpaid’ internships
  • Legally, interns should be paid the national minimum wage if they qualify as a worker
  • A worker is somebody who has a contract and is carrying out work as opposed to just observing
  • But there are some cases where interns are not eligible for minimum wage

Unpaid internships seem to living on through loopholes, a UK education charity says, as it urges the Government to tighten the reins.

The Labour government has previously pledged to ban unpaid internships, and in many cases, working interns are already entitled to be paid the national minimum wage. But in new research published last week, The Sutton Trust found that around three fifths (61%) of internships undertaken by recent graduates were “unpaid or underpaid”.

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It is now calling for the Government to tighten controls to ensure interns are being paid fairly and legally, with the study also noting a growing gap between working-class and middle-class graduates in being able to take internships that could be highly beneficial to their careers.

“Internships are an increasingly critical route into the best jobs, and it’s shocking that in this day and age, many employers still pay interns below the minimum wage, or worse, nothing at all. They should be ashamed,” Trust chief executive Nick Harrison said in a statement. “The Government has pledged to ban unpaid internships, which is absolutely the right thing to do. Clearly not all young people can get support from the bank of mum and dad so banning this outdated practice will help to level the playing field for these valuable opportunities. It’s a no brainer and should be implemented without delay.”

But when are you entitled to be paid at least the national minimum wage as an intern or student at the moment? Here’s what the Government’s guidance has to say:

Interns classed as workers are entitled to be paid minimum wageInterns classed as workers are entitled to be paid minimum wage
Interns classed as workers are entitled to be paid minimum wage | (Image: National World/Adobe Stock)

When interns ARE entitled to minimum wage

The national minimum wage is currently £11.44 for anyone over 21, £8.60 for those aged 18-20, and £6.40 for under-18s or apprentices. According to government guidelines, employers need to pay interns at least that much if they can be classified as a worker.

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The official definition of a worker is a little different to that of an employee, as are the entitlements that come with it. But if the person is completing work or services for the company, and have a contract or other agreement in place, they can typically be counted as a worker. Employers are not able to get out of paying at least minimum wage by simply stating that it does not apply, or by creating a written agreement saying someone is not a worker or that they’re a volunteer, when they actually are.

An intern can also be classed as a worker - and due minimum wage - if they’ve been promised a future work contract while interning at a company. If they are doing regular paid work for an employer, they may also qualify as an employee - and are then eligible for employment rights.

When interns ARE NOT entitled to minimum wage

Students completing an internship as part of a higher education course don’t have to be paid minimum wage, so long as the internship is less than a year long. The same goes for school work experience placements, for young people of compulsory school age.

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Volunteers doing work for a charity, voluntary organisation, or a fundraising body also don’t have to be paid. They can, however, receive some limited benefits like travel or lunch expenses from the organisation, without having to be a paid worker.

Finally, if you are considered to be just ‘shadowing’ an employee at a workplace, and are only observing them and not doing any of the work yourself, their employer doesn’t have to pay you.

What do you think about unpaid internships? Are they a good way to get a foot in the door and valuable experience, or exploitative and locking certain groups out of work? Have your say and let us know by leaving a comment below.

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