Unpaid internships can be a contentious topic in the world of early careers. While they might seem like a necessary stepping stone for many, particularly in competitive industries, it’s crucial to understand the legal landscape and your rights as an intern in the UK.
At theInterna, we believe in fair access to opportunities. This guide will help you navigate the complexities of unpaid internships, understand when they are legal, and how to ensure any experience you gain is truly valuable.
Are Unpaid Internships Legal in the UK?
In the UK, the legality of an unpaid internship hinges primarily on your employment status. Many individuals undertaking an internship, even if called an “intern” or “work experience,” may legally be considered a “worker” and thus entitled to the National Minimum Wage (NMW).
You are generally entitled to the National Minimum Wage if you are classified as a ‘worker’. This often applies if:
- You have a contract (written or verbal) to do work.
- You are required to turn up for work, even if you don’t want to.
- You are promised a contract of future work.
- You are doing work that directly benefits the business, as opposed to solely observing.
Important Note: Employers cannot avoid paying NMW by simply stating that it doesn’t apply, or by making a written agreement that you are not a worker or are a volunteer. What you actually do in the role is what determines your employment status and entitlement to pay.
For a deeper dive into the legal specifics, including the National Minimum Wage rates, please refer to our dedicated page: Laws on Internships in the UK.
When is an Unpaid Internship Lawful?
There are specific, limited circumstances where an internship or work placement can legally be unpaid in the UK:
- Student Placements as Part of a UK-Based Course: If you are a student required to do an internship for less than one year as a formal and assessed part of a UK further or higher education course (e.g., a sandwich year, a placement year for a degree), you are generally not entitled to the NMW. The arrangement must be genuinely part of your academic curriculum.
- School Work Experience Placements: Students of compulsory school age undertaking work experience are not entitled to the NMW.
- Genuine Volunteering for Charities or Voluntary Organisations: If you are genuinely volunteering for a charity, voluntary organisation, associated fundraising body, or a statutory body, and you receive no payment (other than limited benefits like reasonable travel or lunch expenses), you are not entitled to the minimum wage. The key here is that your work is voluntary, and you are not under a contractual obligation to perform tasks.
- Work Shadowing: If your internship solely involves observing an employee and you are not carrying out any work yourself, the employer is not obliged to pay the minimum wage. This is a very limited scenario where your role is purely observational.
If your “unpaid internship” does not fall clearly into one of these categories, it is highly likely that you should be receiving at least the National Minimum Wage.
Making the Most of an Unpaid Internship (If You Choose to Accept One)
Understanding unpaid internships means navigating legalities and maximizing value. If you’re considering an unpaid role, approach it strategically for positive career development.
First, confirm its legal status. Many roles require National Minimum Wage unless specific, limited exceptions apply. Always ascertain your employment status and seek advice if needed.
If a legally permissible unpaid internship aligns with your goals, focus on key aspects to enhance its value. This includes defining your role, setting clear learning objectives, and proactive networking.
For comprehensive strategies on making the most of any internship, covering communication, mentorship, documenting achievements, and building your network, see our detailed article: How to Make the Most of Your Internship. This resource offers in-depth advice for maximum career benefit.
Advice for Employers Regarding Unpaid Internships
- Understand Employment Status: The default position for anyone doing work for your business is that they are a ‘worker’ and are entitled to the National Minimum Wage.
- Avoid Misclassification: Simply labeling someone an “intern” or “volunteer” does not exempt you from paying NMW if their activities qualify them as a worker.
- Prioritise Genuine Learning: If you offer an unpaid placement, ensure it is genuinely for training, observation, or part of a formal educational program. The intern should not be performing tasks that would otherwise be done by a paid employee.
- Promote Fair Access: Consider the benefits of offering paid internships to widen your talent pool and promote social mobility. Many employers find that banning unpaid placements does not negatively impact the number of opportunities they provide.
- Seek Legal Advice: If unsure about the legal status of an internship you wish to offer, consult with legal professionals or advisory bodies like Acas.
Where to Get Help and Further Information
If you believe your rights as an intern are being violated, or if you need further advice on pay and employment status, you can contact:
- Acas Helpline: Provides free and impartial advice on workplace rights and rules.
- GOV.UK: The official government website has comprehensive information on employment rights for interns and the National Minimum Wage.
At theInterna, we are committed to helping you find rewarding and ethical internship opportunities. While we focus on connecting students with startups offering valuable experiences, we also empower you with the knowledge to understand and protect your rights.
Ready to find your next internship? Explore our current opportunities at theInterna.
