Unpaid internships: what the law allows where you are
Quick answer
Three regimes that pull in different directions, and the one rule that survives all of them. How to check your own position before you start.
Unpaid internships are less of a grey area than most students assume, but the
answer depends entirely on where the work happens. What follows describes three
regimes as examples, because they disagree with each other in instructive ways.
Why the question matters more than it looks
An unpaid arrangement that is not lawful is not merely unfair. It may mean the
organisation owed you a wage for the whole period, that its insurance does not
cover you, and that the placement does not satisfy your institution’s
requirements. Those consequences arrive later than the decision, which is why
people accept arrangements they should question.
The Philippines: conditions make it lawful
Article 306 of the Labor Code, as amended, sets conditions for unpaid trainees
and interns. The principal ones are that the intern works at least twenty hours a
week and no more than eight hours a day, that there is a written agreement
between the school, the student and the employer, and that the intern does not
replace a regular employee during ordinary working hours.
The written agreement is required and should exist before you start. An employer
who wants you to begin without one has told you how the rest will go.
The United States: who benefits
The test applied by the Department of Labor is the “primary beneficiary”
standard. An unpaid internship is lawful only where the intern, not the employer,
is the main beneficiary — the work is tied to their education, they do not
displace paid staff, and the employer gains no immediate advantage from their
presence.
The practical reading: if the organisation would otherwise have to hire someone
to do what you are doing, you are the employee and the arrangement is a wage
problem, not an internship.
The United Kingdom: worker status
The dividing line is worker status rather than the label. Someone doing regular
work under an employer’s direction is generally entitled to at least the national
minimum wage, whatever the contract is called and whether or not they are a
student.
That is why “intern” carries no legal weight there, and why an arrangement described as work experience can still attract a wage entitlement if the reality is ordinary work.
The rule that survives all three
If the work you are doing is work a paid employee would otherwise do, and you are
not being paid, ask which law permits it and get the answer in writing before you
start.
What a placement should contain regardless
- A written description of the work and the learning objectives.
- A named supervisor, and a schedule.
- The dates, the hours, and whether expenses are reimbursed.
- What insurance covers you, and what happens if you are injured.
- Whether the placement counts toward your programme, and who confirms it.
The three questions that settle most disputes later
Who is your supervisor, and are they an employee of the place you are
working? A supervisor at an intermediary is not a supervisor at work, and
the distinction decides who can vouch for what you did.
What happens if the placement ends early? For your own reasons,
for theirs, or for a reason outside both. Ask before you start, because the answer
is harder to negotiate later and organisations usually know it.
Who confirms completion, and in what document? A letter from the
organisation naming the dates and the work is worth more than a certificate of
attendance, and the person who signs it should be identified in advance.
How to check your own position
Ask the labour authority for the jurisdiction where the work happens — not where
the organisation is registered, and not where you live. If your institution
arranges placements, its placement office will usually know the local position and
can confirm whether a specific arrangement meets it.
The question is normal and asking it is not a problem. An organisation that treats
it as one has answered a different question for you.
Expenses, and the difference between unpaid and out of pocket
Unpaid and out of pocket are not the same thing. A lawful unpaid internship often
reimburses travel and lunch, and sometimes pays a stipend that is not a wage. Ask
which applies, because the answer changes the real cost of accepting.
Ask also who covers insurance during the placement and what happens if you are
injured at work. In many jurisdictions a lawful unpaid intern is covered by the
employer’s insurance; where that is unclear, it is worth establishing before you
start rather than after an accident.
What to do if you think the arrangement is unlawful
Raise it with your institution’s placement office first — they have the leverage
and the relationship, and they can decline to endorse the arrangement. If they
cannot help, the labour authority for the jurisdiction is the body that enforces
it.
Keep the written agreement and any correspondence about hours and duties. A
complaint about unpaid work is decided on what the arrangement actually was, and
the record is what establishes it.
For the broader route into finding placements, see
finding a placement. For
placements outside your own country, the authorisation question is separate and is
covered in
visas and
work authorisation.
Questions students ask
Are unpaid internships legal?
It depends where the work happens. Some jurisdictions permit them only on stated conditions, others apply a test of who mainly benefits, and others entitle the worker to a minimum wage regardless of the label.
What makes an unpaid internship lawful in the Philippines?
Article 306 of the Labor Code sets conditions including at least twenty hours a week, no more than eight hours a day, a written agreement between school, student and employer, and no replacement of regular employees.
Which law applies to my internship?
The law of the jurisdiction where the work is done, not where the organisation is registered and not where you live. Ask that labour authority and get the answer in writing before starting.
Common questions
Are unpaid internships legal?
It depends where the work happens. Some jurisdictions permit them only on stated conditions, others apply a test of who mainly benefits, and others entitle the worker to a minimum wage regardless of the label.
What makes an unpaid internship lawful in the Philippines?
Article 306 of the Labor Code sets conditions including at least twenty hours a week, no more than eight hours a day, a written agreement between school, student and employer, and no replacement of regular employees.
Which law applies to my internship?
The law of the jurisdiction where the work is done, not where the organisation is registered and not where you live. Ask that labour authority and get the answer in writing before starting.