I nternships a source of free labour or a

labyrinth of confusion?

Alex Kleanthous
Matt Gingell
What interests you?
Internships on the agenda 1 in 3 unpaid

Politics campaign for fair pay

Benefits of internships - varied

FAQs we cover

What is an intern and the employment rights

Can interns be unpaid?

Other legal and practical issues

Immigration considerations
What is an intern - label

No legal definition life gets complicated

Usually short term

Shadowing and completing tasks





Why do you care?

Employment rights will depend on status

Employees: unfair dismissal plus the rest

Workers: the rest - NMW, holiday, whistleblowing, part
time workers protection and discrimination

Employees
Require:
- a contract of service
- personal service no right of substitution
- mutuality of obligation (work in return for a
wage)
- employer in control

Workers
Require:
- a contract of service
- personal service
- less control can turn down work
- not consultant or self-employed or sent to work
for clients



Is there a contract?

A contract requires:
Offer
Acceptance
Consideration
Intention to create legal relations
Certainty

No contract = mess
National Minimum Wage

Anyone who works is entitled

6.19 for those over 21 rates vary

6 years backdated claims

Criminal penalties if wilfully neglected to pay NMW


But does it really happen?
Central London Employment Tribunal, 12 May 2011
Keri Hudson v TPG Web Publishing
1,025 for 5 weeks work
Supported by NUJ
Reading Employment Tribunal, 20 November 2009
Vetta v London Dreams Motion Pictures
2,400 including accrued holiday pay
Supported by BECTU
Other reports
NOW magazine - 750 for one month (Justice for Interns
campaign)
Arcadia dozens of interns received pay for up to a year after
HMRC enforcement
Vast majority are quietly settled
Practical guidance

Less control over what is done when encourage
shadowing
Be clear what payments are being made clear
reimbursement of expenses
Avoid language of contractual obligations (might,
could include, possible, approximate)
Be fair and reasonable
But the label does not matter the facts of the
arrangement do

Documenting the arrangement
Placement dates
Suggested hours
Location
Supervisors name
Specific learning
objectives
Work related expenses
Health and safety
Insurance
Intellectual property
Confidentiality
CIPD Internship Charter

Recruitment
Induction
Supervision
Treatment
Payment and duration
Certification/reference and feedback

CIPD Guide for Employers

Internships that Work

http://tinyurl.com/cipdinterns
Immigration issues

International dimension and access to talent

Disconnect between employment law and
immigration law
Right to work in the UK

Employing non-EEA (European Economic Area)
nationals

- Need express right to work

Nationals of EEA countries
Tier 4 Student visas

Degree level or above/Recognised Body or Higher
Education Institution (HEI)
- Term-time 20 hrs max
- Vacation Full time

Below degree level
- Term-time - 10 hrs max
- Vacation Full time
Tier 5 Government Authorised Exchange

Approved schemes

Overarching bodies sponsors

Lack of candidates in financial sector

BUNAC

Overarching sponsor/any industry

- Aged 18 and over
- Current full-time degree level student (or
graduate in last 12 months)
- Good English skills
- Internship max 6 months/structured programme
Other solutions

Tier 5 (Youth Mobility Scheme)

- 18 to 30 years olds
- Participating countries
- Max 2 years
- National government acts as sponsor
Other solutions

Tier 2 (Intra-Company Transfer) (ICT) Skills Transfer

- Licensed sponsor
- Bypass Tier 5
- Acquire/impart skills
- Minimum salary 24,000 per annum
Other solutions

Tier 1 (Graduate Entrepreneur)

- Graduates with endorsement from approved HEI
- Up to 2 years
- Max 20 hrs per week

Illegal working
Civil offence
- Maximum fine 10,000

Criminal offence
- Punishable up to 2 years in prison

Entry bans

Reputational damage
Conclusions

Consider what you need interns to do
Which category do they fall into?
Consider whether NMW applies
Draft an appropriate contract
Consider immigration issues and risk of
discrimination claims

Future fixtures
New Year 2013
Social media and restrictive covenants
- How will you protect the Companys IP?

Spring 2013
Consultants
- Could you get clobbered?
ANY QUESTIONS?

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