Interns should be paid minimum wage, tribunals confirm

Employment Law & HR update - 04/07/2011

With current news about certain MPs being criticized for offering unpaid "internships", the debate about whether "interns" should be paid at least the National Minimum Wage continues.

A number of cases recently decided by employment tribunals have taken the view that "interns" should be paid at least the national minimum wage (NMW), and as workers they will also qualify for paid holiday entitlement.

But the rulings are not binding on other tribunals – although employers would be wise to take note of the decisions.

What is an "intern"?

"Internships" are a form of work experience, and the arrangement has advantages for the Intern – the person doing the work experience. These include the possibility of securing permanent employment and, at least, the opportunity to add something to their c.v.

Should interns be paid the NMW?

NMW law and the government guidance make it pretty clear that the NMW must be paid to all "workers", but without specifically mentioning interns.

But some businesses have taken the view that interns come within one of the NMW exceptions, which include certain trainees and volunteers. Unpaid interns, lured by the possibility of securing permanent employment and the desire not to appear a "trouble maker" are usually discouraged from claiming against their employer.

Many unpaid interns complain that they are in fact doing "real work", often with long hours, and are simply being exploited as a form of cheap labour. On the other hand, their employers say engaging interns can be costly to them, as they need to devote time to training.

For further information…

Each case will depend on its precise facts, and if you require specific advice, call our Telephone Advice Service.