Unpaid internships and your rights in the UK
For many young people in the UK, an internship is seen as a vital first step into a competitive industry. However, the issue of unpaid work has long been a contentious one, raising questions about fairness, opportunity, and the law. The topic has recently returned to public discussion, with political pledges to end the practice. For consumers and workers, it’s crucial to understand what the rules actually are, who is entitled to pay, and how to spot when an ‘internship’ might legally be considered employment.
What is the current law on paying interns?
Contrary to popular belief, there is no specific legal category for an ‘intern’ in UK employment law. The key question is whether the individual is legally a ‘worker’. This status determines their right to the National Minimum Wage. A person is likely to be a worker if there is an obligation to perform work, and the organisation they are working for is obliged to provide it. This means that if someone is doing real, productive work for a company, set hours, and is contributing value, they are almost certainly entitled to be paid at least the National Minimum Wage for their age.
The current National Minimum Wage rates (as of April 2024) are:
- £11.44 per hour for workers aged 21 and over.
- £8.60 per hour for workers aged 18 to 20.
- £6.40 per hour for workers under 18 and apprentices.
These rates are set by the government and enforced by HMRC. It is a criminal offence for an employer not to pay someone the wage they are legally entitled to.
When is an unpaid internship actually legal?
There are very limited circumstances where an unpaid placement is lawful. These typically involve genuine ‘work experience’ or ‘shadowing’ arrangements that are primarily for the benefit of the individual, not the business. Key characteristics include:
- The placement is very short (often one or two weeks).
- The individual is purely observing and not undertaking tasks that would otherwise be done by a paid employee.
- There is no obligation on either side – the person can leave at any time, and the business is not obliged to provide work.
- The arrangement is part of a further or higher education course.
If you are expected to turn up at 9am, leave at 5pm, have specific responsibilities, and your work benefits the company, you are almost certainly a worker and entitled to pay.
The risks and costs of unpaid internships
Accepting an unpaid role when you should be paid carries significant financial and career risks. Firstly, you are working for free, which can create financial hardship, especially in cities with high living costs like London. This can limit opportunities to those who can afford to support themselves without an income, potentially reducing social mobility.
Furthermore, you may miss out on crucial employment rights that come with worker status, such as paid holiday and protection against discrimination. There is also a risk that a company offering unlawful unpaid internships may have poor employment practices in other areas.
What should you do if you are offered an unpaid internship?
If you are offered an internship, it’s important to assess it carefully. Ask clear questions about the structure: Will you have set hours? Will you be given specific tasks or projects? Who will be supervising you? The answers will help you determine if it’s a genuine learning experience or a job in all but name.
If you believe you are undertaking work and should be paid, you have several options. You can raise the issue politely with the employer first, pointing to the government’s guidance on the National Minimum Wage. If this is not resolved, you can make a complaint to HMRC, which can investigate and force the employer to pay any arrears owed. You can also seek advice from Acas (the Advisory, Conciliation and Arbitration Service) or the Citizens Advice Bureau.
For consumers and families supporting young people entering the workforce, understanding these rules is key to ensuring fair treatment and avoiding exploitation. While gaining experience is invaluable, it should not come at the cost of your legal rights.
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Source: https://uk.finance.yahoo.com/news/pay-interns-least-minimum-wage-080000326.html
