For
the debt-riddled graduates flooding the jobs market, an internship is an essential bridge to full-time work and enthusiastic young, relatively cheap, talent has its own rewards for employers. But stay on the right side of the law.
Employment law can be a tricky business and the fallacy that an internship equals free labour could potentially land a company in hot water.
There are a few basic legal rules worth bearing in mind should you wish to offer an internship.
Danvers Baillieu, technology lawyer at Winston & Strawn LLP and Bootlaw founder addressed this very issue at a Bootlaw meetup evening earlier this year:
"The shades of grey apply particularly in relation to the requirements of the National Minimum Wage Act 1998 (NMWA 1998)"
Under the National Minimum Wage Act (NMWA 1998), anyone who is a worker, that is a person who is employed by you and no one else, must be paid, the minimum wage and according to the act a worker is defined as:
“an individual who has entered into or works under (or,
where the employment has ceased, worked under)" is an employee and must
be paid accordingly.
Exemption from the rule are builders, accountants or other types of contractors. The minimum wage for over 22 year olds is £5.73/hour (£229.20/week based on 40hrs) and £4.77/hour (£190.80/wk) for 18-22 year olds.
