Minimum wage law and unpaid interns.

Minimum wage law and unpaid interns.

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Undercover Agent

Original Poster:

2,344 posts

170 months

Thursday 8th November 2018
quotequote all
I have someone who wants to work with me as an unpaid intern to gain some experience in the field - which I am more than happy to do.

(He asked me, I didn't advertise)

So, in law will he be an "Employee"? If so, how do I account for him being paid (a lot less than) minimum wage?
For reference he's 24yo.



I mean in practice its going to be easiest if I just say nothing at all to HMRC etc, but if he's working with me i'll want him to be covered by my employer's liability insurance.


StevieBee

12,887 posts

255 months

Thursday 8th November 2018
quotequote all
It's a bit of tricky area.

Unpaid internship dictates that they will not get paid anything. Though the company may choose to reimburse travel.

But if they do work the same, similar to or that which would normally be done by a paid employee - then the company is obliged to pay the NMW that applies, in the way they would any other employee.....sometimes.

Been a while since we looked at this but from memory, an example would be thus:

If they want to know how to write a database and shadow an employee, watching how they do it and getting some advice from them, that would be fine. If that employee then showed them how to do it and the intern was then left to write a database, then they are entitled to payment.

There is something I believe, that used to be called an 'honorarium' payment - payment of a set amount on which no tax or Ni is due which can (or could) be used as a token / gesture payment.

As I say, been a while since I looked into this so hopefully someone with more current insight can add.




Simpo Two

85,420 posts

265 months

Thursday 8th November 2018
quotequote all
How does American 'intern' differ from UK 'apprentice'?

Undercover Agent

Original Poster:

2,344 posts

170 months

Thursday 8th November 2018
quotequote all
Simpo Two said:
How does American 'intern' differ from UK 'apprentice'?
Usually means short-term unpaid, instead of very poorly paid long term (Apprentice)

Edited by Undercover Agent on Thursday 8th November 21:49

smithyithy

7,243 posts

118 months

Friday 9th November 2018
quotequote all
Assume you may have already read this OP, but the Gov.uk site outlines the basic definitions and parameters of 'unpaid work': https://www.gov.uk/guidance/national-minimum-wage-...

It still sounds rather unclear to me though