Government plans stronger action on unpaid internships

The UK government has announced new steps aimed at addressing illegal unpaid internships, focusing on improved guidance for employers and tougher enforcement of existing rules. However, ministers have decided not to introduce a complete ban on the practice for now.

Following a public evidence review on internships, officials said they would update guidance to help businesses understand when interns must be paid. They also plan to improve communication so that people undertaking internships are better informed about their rights and how to challenge unfair treatment.

A new labour market enforcement body, scheduled to begin operating in April, will also play a role in monitoring and investigating potential abuses. The agency is expected to take action against employers who fail to comply with minimum wage requirements.

Under current UK law, unpaid internships are generally unlawful unless they form part of a recognised educational programme or formal training course. Although the term “intern” is widely used, it does not have a specific legal definition. If an individual carries out work that meets the legal criteria of a worker, they must be paid at least the national minimum wage.

While the government has not ruled out introducing further legislation in the future, officials indicated they would first assess whether stronger enforcement and clearer guidance are sufficient. They emphasised the importance of ensuring young people have fair access to early career opportunities.

Recent research suggests that internships are becoming more common among graduates. Data indicates that more than one-third of graduates completed an internship last year, an increase compared with figures reported several years earlier.

Other surveys of young workers suggest that unpaid internships remain widespread. Around half of those who had taken part in an internship reported receiving no pay, and many said their placements lasted longer than a month. A smaller proportion reported working without pay for extended periods of several months.

Campaigners argue that clearer rules and stronger protections would help ensure early career opportunities are based on talent and ability rather than financial resources. They say creating a system where young people are paid fairly for their work would make access to professional careers more equitable.

Should you wish support to draw up legally compliant Intern Agreements, contact 121 HR Solutions on 0800 9995 121.

Government plans stronger action on unpaid internships

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