Keep up to date /
Interns: a companys' obligations...
Categories
Posted in Candidates, Employers on Oct 13, 2011 by Richard Hayden
Yesterday data released by the Office for National Statistics revealed that unemployment figures for 16 – 24 year olds has now risen to a record breaking high 991,000 in the quarter, a rate of 21.3%.
Many young people and graduates alike are looking to internships and apprenticeships to allow them to gain the vital skills and experience to get onto the career ladder. This can be a great way to introduce young people to a professional environment and allow employers to identify potential future employees.
Many business’ do not know what is expected from them if they take on an intern and admittedly the guidelines surrounding them are somewhat ambiguous. In this article we hope to clarify some of the essential points for consideration when taking on an intern.
The basic aim of an internship is that allows the individual undertaking the internship to gain experience and as such, any organisation taking on an intern is under an obligation to educate and train them.
The issue of pay is somewhat unclear but as a basic guideline;
If an internship is being carried out as part of a degree or concurrent with a degree then the role can be unpaid for up to 4 months, however all work related expenses should be covered by the organisation.
If an internship is offered to an individual who is not studying but who would like to gain a valuable insight into your industry they can be unpaid for up to 4 months, dependant on the organisations requirements. Again any work related expenses should be covered by the organisation.
An unpaid intern should not carry out any duty which would otherwise be carried out by a paid member of staff. Essentially they would be allowed to shadow a member of your permanent staff and gain an insight through their experience.
A paid intern can carry out tasks which facilitate the company’s obligation to educate and train them. In this situation it is strongly advisable to offer the National Minimum Wage to avoid complications or unknowingly breaking the law.
Where internships are concerned there is no definitive rule as to whether they should be paid or unpaid. However if you take on an individual and fail to properly place and treat them as intern (in terms of placing upon them an expectation to carry out duties which can be deemed as work) you could find yourself on the wrong side of law.
If an unpaid intern is deemed to be a worker (akin to a temporary member of staff), in which there is an obligation to perform certain tasks and where there is an expectation of work being delivered personally for the organisation then you are breaking the law and are required to pay National Minimum Wage.
Furthermore if your intern is deemed to be a ‘worker’ you could find yourself in breach of the Employment Rights Act 1996, in particular if they have been with the organisation for a period of 12 weeks or more.
Recent revisions in the Agency Workers Directive (giving agency workers equal rights comparable to permanent employees [after being in a given role with the same employer for 12 weeks]) could mean that your intern is entitled to the same rights as a permanent employee. Including rights such as holidays and sick pay to name but a few.
Honestly, yes. As a basic rule of thumb if you expect someone to contribute to your organisation it is only fair to expect to pay them. Internships allow you as a business the chance to train and educate an individual in your industry giving them valuable experience, this is particularly useful if you should choose to offer them a role following their internship and can only benefit you, your business and your team.
The points raised in this article are in no way exhaustive and should you consider taking on an intern we advise that you consult a professional HR specialist. Key Appointments are happy to provide details of a reputable HR Specialist who can advise you in these matters should you require them.
<< Key Appointments blog listing
Many young people and graduates alike are looking to internships and apprenticeships to allow them to gain the vital skills and experience to get onto the career ladder. This can be a great way to introduce young people to a professional environment and allow employers to identify potential future employees.
Many business’ do not know what is expected from them if they take on an intern and admittedly the guidelines surrounding them are somewhat ambiguous. In this article we hope to clarify some of the essential points for consideration when taking on an intern.
What is the aim of an internship?
The basic aim of an internship is that allows the individual undertaking the internship to gain experience and as such, any organisation taking on an intern is under an obligation to educate and train them.
Are interns entitled to pay?
The issue of pay is somewhat unclear but as a basic guideline;
If an internship is being carried out as part of a degree or concurrent with a degree then the role can be unpaid for up to 4 months, however all work related expenses should be covered by the organisation.
If an internship is offered to an individual who is not studying but who would like to gain a valuable insight into your industry they can be unpaid for up to 4 months, dependant on the organisations requirements. Again any work related expenses should be covered by the organisation.
What duties can an intern carry out?
An unpaid intern should not carry out any duty which would otherwise be carried out by a paid member of staff. Essentially they would be allowed to shadow a member of your permanent staff and gain an insight through their experience.
A paid intern can carry out tasks which facilitate the company’s obligation to educate and train them. In this situation it is strongly advisable to offer the National Minimum Wage to avoid complications or unknowingly breaking the law.
The grey area...
Where internships are concerned there is no definitive rule as to whether they should be paid or unpaid. However if you take on an individual and fail to properly place and treat them as intern (in terms of placing upon them an expectation to carry out duties which can be deemed as work) you could find yourself on the wrong side of law.
If an unpaid intern is deemed to be a worker (akin to a temporary member of staff), in which there is an obligation to perform certain tasks and where there is an expectation of work being delivered personally for the organisation then you are breaking the law and are required to pay National Minimum Wage.
Furthermore if your intern is deemed to be a ‘worker’ you could find yourself in breach of the Employment Rights Act 1996, in particular if they have been with the organisation for a period of 12 weeks or more.
Recent revisions in the Agency Workers Directive (giving agency workers equal rights comparable to permanent employees [after being in a given role with the same employer for 12 weeks]) could mean that your intern is entitled to the same rights as a permanent employee. Including rights such as holidays and sick pay to name but a few.
Is it worth the hassle?
Honestly, yes. As a basic rule of thumb if you expect someone to contribute to your organisation it is only fair to expect to pay them. Internships allow you as a business the chance to train and educate an individual in your industry giving them valuable experience, this is particularly useful if you should choose to offer them a role following their internship and can only benefit you, your business and your team.
The points raised in this article are in no way exhaustive and should you consider taking on an intern we advise that you consult a professional HR specialist. Key Appointments are happy to provide details of a reputable HR Specialist who can advise you in these matters should you require them.
At Key Appointments we want to supply you with relevant and useful information, if there are topics you would like more information on then please email us at info@key-appointments.co.uk
<< Key Appointments blog listing
