What is work experience?

 

The term 'work experience' generally refers to a specified period of time that an individual spends with your business - during which they have an opportunity to learn directly about working life and the working environment. Some work experience positions offer people the chance to try their hand at particular tasks, others simply provide an opportunity to watch and learn.  The nature, length and arrangements for work experience vary greatly and an individual's entitlement to the national minimum wage (NMW) will depend on whether the work experience offered makes the individual a worker for NMW purposes.

 

What counts as an internship?

 

Work experience is sometimes referred to as a 'placement' or an 'internship'. In common usage, internships are sometimes understood to be positions requiring a higher level of qualification at the outset than other forms of work experience and are associated with gaining experience for a professional career.  However, the term 'intern' has no legal status under NMW law and entitlement to the NMW does not depend on what someone is called, the type of work they do, how the work is described (eg 'unpaid' or 'expenses only') or the profession or sector they work in.  What matters is whether the agreement or arrangement they have with you makes them a worker for NMW purposes.

 

Some forms of work experience, including placements and internships, may be referred to as 'unpaid work' or 'expenses only', where an individual gives their services free of charge in order to develop or maintain their skills. Organisations offering such positions should check if the individual is a volunteer for NMW purposes or if an exemption applies.

 

Considerations when designing work experience placements

 

Recruitment advertising

 

Before advertising a vacancy on an 'unpaid' or 'expenses only' basis you should check whether the individual that you are planning to recruit will be classed as a worker for national minimum wage (NMW) purposes. You can use the Worker Checklist to help you decide if the individual will be a worker for NMW purposes. 

 

Employment contracts and other written agreements

 

If you engage someone on a work shadowing or on a volunteer basis, it is recommended that you agree elements of the arrangement in writing, such as learning objectives, and then tailor their activities to these learning objectives. Documenting objectives for the work experience and recording that you will reimburse someone for 'out of pocket' expenses will not, in itself, amount to an employment contract or a contract to personally perform work or services which entitles the individual to the NMW.

 

Conversely simply stating in a written agreement that an individual is not a worker or that they are a volunteer does not mean that they are so for the purposes of NMW legislation.  A court or tribunal would look at the reality of the arrangements made with the individual to determine if they are eligible for the NMW.

 

Similarly, stating in documents that the NMW does not apply will not limit your liability to pay the NMW when it is due.  NMW legislation ensures an employer cannot avoid paying NMW in this way (even if the individual concerned agrees to this).

 

For more information, contact our Tax Team or visit the Business Link page on national minimum wage.