The guidance explains to potential interns what their rights are in relation to
being paid the national minimum wage and what action to take if they believe
they have been exploited. In short, as national minimum wage legislation
does not recognise the concept of “internship”, it is going to be very
difficult for anyone offering substantive work placements to do so without
paying the national minimum wage, unless that work experience is in accordance
with a recognised government or EU training programme, a proper further or
higher education placement or the person is a genuine volunteer for a
charitable organisation.
In addition, HMRC has stated that it will be sending
out letters to 200 employers that have recently advertised intern opportunities
and unpaid work. These letters will inform those employers that HMRC will be
carrying out checks to ensure that they are paying all their workers the
correct national minimum wage. Meanwhile, the trade union Unite has warned that
they are going to report high profile charities that exploit unpaid interns to
HMRC.
While it is clear that there needs to be a crackdown
on organisations that misuse internships to exploit trained labour in return
for a name on a cv, this should not deter organisations from offering genuine
work shadowing opportunities or charities from using volunteers. These
arrangements can bring considerable benefits not just to those involved but to
society in general. However, given the cost and potential criminal
sanctions of getting it wrong, it is prudent that any such arrangements are
reviewed with care.
David Evans
