Minimum wage law and unpaid interns.
Discussion
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.
(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.
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.
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.
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
It still sounds rather unclear to me though
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