By Andy Willis on Small Business – Advice and Ideas for UK Small Businesses and SMEs
With so many graduates and young people out of work and recruitment slow to pick up, internships and work experience are a popular route for those looking for a foot in the door to their chosen career.
There are also significant benefits for smaller employers. Internships offer them a pool of talented new faces at a time when budgetary constraints mean they may be struggling to take on permanent staff.
However, while the benefits are clear, SMEs must be aware that from a legal standpoint interns can be considered either workers or employees. This means that they are often covered by the same employment legislation as the rest of the workforce, including the right to be paid National Minimum Wage (NMW). As failure to comply with NMW laws can lead to costly employment tribunal claims and hefty fines, it is crucial that businesses know where they stand before offering work experience or internships.
Is an intern a worker or an employee?
“Internship” is a general term that can result in varying employment relationships and, as a result, varying employment statuses. Depending on the way that an intern is treated,