To pay, or not to pay?

Getting relevant and quality work experience has never been more important for the job hunter.  Academic qualifications test what an applicant knows, but experience counts for so much in applying that knowledge and being a productive member of a workforce.

This results in prospective employees being willing to offer their services free of charge and many employers are happy to offer the experience opportunity without worrying about the accompanying wage bill.

But is using interns, volunteers, work experience students really worry free?

An internship is defined as being at a higher level than work experience and is associated with gaining experience for a professional career.  There have been a few recent high profile cases that have resulted in unpaid interns being deemed employees and therefore being entitled to National Minimum Wage and holidays.

So what makes a role voluntary and what makes it employment?

Unpaid internship/Voluntary post

Volunteers giving their time up for a charity Work experience arrangements for students through a school, college or university The intern has little or no obligation towards the business (eg no set working hours) The organisation is not reliant on the work of the intern The arrangement is for a short set period There is no promise of future employment.

Employment

A role or tasks which is beyond a reasonable understanding of ‘work experience’ Where there is an expectation of future employment Responsibilities in the role including overseeing a team Significant set working hours

Our Advice for Organisations

• Unpaid internships and volunteer opportunities have their place, but their use can easily be seen as exploitation if the parameters are not clearly set out and communicated.
• Be very clear if a role is voluntary and set out an agreement – matching what the volunteer wants to get out of the experience with what the organisation can offer
• If the intern is not paid consider, whether financial assistance could be given with travel to work
• Ensure that the intern is not treated unfairly, and just given the work that no-one else wants to do
• Communicate with your paid employees about taking on an intern.       They may feel their job is at risk if it can be done by a volunteer – resulting in demotivation and a lack of co-operation with the intern. Sell it as an opportunity for current employees to have some additional resource and some leadership experience
• Do not allow managers to expect interns to work unreasonable hours
• Have a clear agreement about how long the internship will last

If you need help in establishing an intern or volunteer agreement and other related documentation or want to understand whether you should be paying a voluntary role, get in touch and we’ll be happy to advise.