TL;DR: Many businesses use unpaid interns believing it is legal and straightforward. In reality, unpaid internships are unlawful in most circumstances across all 7 countries — anyone who performs productive work is likely entitled to at least minimum wage. This guide explains the legal distinction and how to structure lawful internship arrangements.
Disclaimer: MmowW Scrib🐮 is a document preparation service, not a law firm. We do not provide legal advice. This guide is for general informational purposes only. Internship and minimum wage laws vary significantly by jurisdiction. Always consult a qualified employment solicitor or attorney for advice specific to your situation.
The legal status of an "intern" depends entirely on the nature of the arrangement — not what you call it. If someone performs productive work for your business and is controlled by your organisation, they are likely a worker or employee, regardless of the label "intern."
The core question in most jurisdictions is: Does the intern provide productive work that benefits the business?
This matters because:
United Kingdom — Worker Status
In the UK, anyone who is a "worker" (a category broader than "employee") is entitled to National Minimum Wage. A person is a worker if they agree to personally perform work for another party and that party is not a client or customer.
Most interns who do productive work are workers. Exceptions:
United States — Primary Beneficiary Test
US courts (following the DOL's guidelines based on the Walling v. Portland Terminal Co. case) use a 7-factor "primary beneficiary test" to assess whether an intern is entitled to minimum wage:
No single factor is determinative. However, if the intern is doing real productive work that benefits your business, they will likely be considered an employee.
Australia — Employee-like
Under the Fair Work Act, the question is whether the arrangement is genuinely a vocational placement (recognised by an educational institution) or whether it operates as an employment relationship. Unpaid work outside a genuine vocational placement is unlawful.
Other jurisdictions apply similar principles — the economic reality of the relationship determines status, not the label.
| Type | Description | Minimum Wage? | Notes |
|---|---|---|---|
| Paid intern / junior employee | Performs productive work; receives a salary or stipend at or above minimum wage | Yes | This is simply a junior employee; employment law fully applies |
| Unpaid vocational placement | Mandatory placement as part of an accredited course; educational institution is involved | Generally no | Must be formally required by the course; no ongoing obligation after placement |
| Work shadowing / observation | No productive work performed; purely observational for 1–2 days | Generally no | Duration must be very short; any productive work tips it over into employment |
Use our free tool: Employment Checker
Try it free →| Country | Minimum Wage for Interns? | Exceptions | Governing Law | Gov URL |
|---|---|---|---|---|
| 🇬🇧 UK | Yes — if "worker" performing real work | Genuine volunteers; student placements required by course | National Minimum Wage Act 1998 | gov.uk/employment-status/worker |
| 🇫🇷 France | Yes — gratification stage mandatory for internships >2 months; rate set annually | Voluntary internships <2 months without pay if genuinely educational | Code de l'éducation / Code du travail | service-public.fr/particuliers/vosdroits/F16734 |
| 🇸🇪 Sweden | Typically governed by collective agreements; practice (praktik) through Arbetsförmedlingen is unpaid; private sector arrangements should follow NMW | Arbetsförmedlingen-organised practice; genuine educational placements | Collective agreements; MBL | arbetsformedlingen.se |
| 🇦🇺 Australia | Yes — if not a genuine vocational placement | Recognised vocational placement under accredited course | Fair Work Act 2009 | fairwork.gov.au/tools-and-resources/fact-sheets/unpaid-work/unpaid-work |
| 🇳🇿 New Zealand | Yes — if performing productive work for employer's benefit | Genuine course-required placements | Minimum Wage Act 1983 | employment.govt.nz/starting-employment/types-of-employees/young-employees/ |
| 🇨🇦 Canada | Provincial rules apply; most provinces require minimum wage for interns unless in an approved educational program | Approved educational programs; federal exceptions for certain training programs | Provincial employment standards acts | canada.ca/en/employment-social-development/services/labour-standards |
| 🇺🇸 USA | Yes — if primary beneficiary test indicates employer benefit | Educational vocational programs; government agencies (unpaid government internships are common) | FLSA + state law | dol.gov/agencies/whd/fact-sheets/71-flsa-internships |
United Kingdom
HMRC actively enforces National Minimum Wage compliance and publishes "name and shame" lists of employers found to have underpaid interns. If you want an intern to do productive work, pay at least National Minimum Wage. Internship contracts do not eliminate the requirement to pay — the nature of the work determines status.
France
France has specific rules for internships (stages). Internships of more than 2 months require payment of a minimum gratification (set annually — approximately €4.35/hour in 2024). Longer internships (more than 6 months in a calendar year with the same company) are prohibited. Internships must be covered by a tripartite convention between the company, the intern, and their educational institution.
Australia
The Fair Work Ombudsman takes an active enforcement stance on unpaid work. Only vocational placements undertaken as a requirement of a recognised course of education or training at an education provider are excluded from the minimum wage requirement. All other "interns" who do productive work are entitled to minimum wage and full NES entitlements.
United States
US law varies by state. California, New York, and Illinois have broader rules protecting unpaid interns from discrimination even if they are not technically employees — meaning they may have anti-discrimination protections without minimum wage rights. Federal DOL guidelines apply to for-profit employers; non-profit and government internships operate under different rules.
If you want to create an internship programme, follow these principles:
Option 1: Pay the intern (simplest)
Treat the intern as a junior employee, pay at least minimum wage, and comply with all employment law requirements. This is the safest approach and allows you to get productive work from the intern.
Option 2: Educational placement (narrower)
Option 3: Work shadowing (very limited)
Paid interns who are classified as workers or employees have the same rights as any other worker, including:
Internships do not create a reduced-rights category of worker. Pay them properly, and treat them properly.
1. Calling it an "internship" to avoid paying minimum wage
The label makes no legal difference. If the person does productive work, they are entitled to minimum wage in all 7 countries (with narrow exceptions).
2. Offering "course credit" instead of pay
In most jurisdictions, offering academic credit does not substitute for minimum wage unless the placement is a formal, required part of an accredited course with institutional oversight.
3. Extending an unpaid internship beyond lawful limits
France limits internships to 6 months. Extended unpaid arrangements in any country create increasing legal risk as the intern's contribution to your business becomes more evident.
4. Not providing employment documentation to interns
Even if an intern is paid, some employers omit contracts and payslips. Paid interns are entitled to these documents.
5. Not providing health and safety induction to interns
Interns — paid or unpaid — must receive a workplace health and safety induction. They are covered by workplace safety law.
Q: Can I offer an intern a "volunteer" arrangement to avoid minimum wage?
A: Only genuine volunteers for charities and not-for-profit organisations may work without pay in most jurisdictions. For-profit businesses cannot create "volunteer" arrangements to avoid minimum wage. The nature of the work and the relationship determines status — not what you call it.
Q: What if the intern says they're happy to work for free?
A: Minimum wage laws exist to protect workers — workers cannot contract out of their minimum wage entitlement. Even if the intern enthusiastically agrees to work for free, if they are legally entitled to minimum wage, you remain liable for paying it (plus back-pay and penalties if you don't).
Q: Do interns count as employees for employers' liability insurance purposes?
A: Yes — paid interns who are workers or employees must be covered by your employers' liability insurance (UK) or workers' compensation (Australia, Canada, US). Even unpaid interns who are on your premises should be covered for health and safety purposes.
Q: Can graduate schemes be structured as unpaid internships?
A: No — graduate schemes involving productive work are employment arrangements. Graduates in a graduate scheme are entitled to at least minimum wage and full employment rights. Some graduate schemes involve a structured training programme, which may justify a lower starting salary — but not zero pay.
Our Employment Checker provides an overview of worker classification rules and minimum wage requirements by country.
Track filing deadlines for new worker registrations and payroll submissions with our Filing Deadlines tool.
Use our Cost Calculator to budget for the true cost of employing an intern including employer social contributions.
Remember: MmowW Scrib🐮 prepares documents — it does not provide legal advice. A qualified employment solicitor or attorney should review your internship arrangements.
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