Understanding Internships, Work Experience and the National Minimum Wage

For employers finding talented individuals who can contribute to their organisation is crucial, while job seekers or students on summer breaks are eager to gain valuable experience to build their resumes. Internships and work experience programs often serve as a pipeline for future talent acquisition while providing valuable learning opportunities.

Worker Status and National Minimum Wage

When employing an intern or work experience candidate it’s crucial to consider their worker status and comply with the national minimum wage.

To determine whether an intern or work experience candidate qualifies as a worker it is essential to assess the nature of their role and the nature of the relationship between the individual and employer. Anyone performing work in exchange for payment is likely considered a worker and entitled to the national minimum wage. Where an individual observes the workings of an organisation (sometimes referred to as shadowing), typically these are unpaid arrangements but should not involve productive work.

Internships

An intern is typically a student or recent graduate, who temporarily works for an organisation to gain practical experience, skills and knowledge in a specific field or industry. Paid internships are subject to the national minimum wage if the intern is classed as a worker.

Work experience

The term work experience generally refers to a specified shorter period that a person spends with a business, more observational, focusing on providing a general understanding of a job or industry and providing them with an opportunity to learn directly about working life and the working environment. These placements are generally unpaid as they involve observation rather than productive work.

Benefits for Employers and Participants

Embracing interns and work experience candidates as valuable contributors benefits both the individual and organisations, fostering growth, innovation, and talent development. Understanding the National Minimum Wage is crucial for both interns and work experience candidates. By navigating these complexities effectively, both parties can maximise the benefits of the placement, paving the way for successful career development and organisational growth.