Hiring unpaid interns as free labour is illegal, firms warned

THE Government cracked down on unpaid internships last night, sending letters to 550 businesses to warn them to review their practices.

As concern mounts that companies are exploiting interns as a source of free labour, new enforcement teams will ensure employers are fulfilling their obligations.

Andrew Griffiths, the business minister, warned employers that the practice was “exploitative and illegal”, while HMRC prepared tough new penalties for offenders.

The Government is expected to focus on the performing arts industry and law and accountancy firms, considered by many to be the worst offenders. However, in recent months MPS have faced criticism for advertising unpaid internships. They include Dominic Raab, the housing minister, who this week had to defend his advert for an unpaid intern to work in his constituency office.

It initiative follows research published by Sutton Trust that revealed that one fifth of 10,000 graduates in internships six months after leaving university were unpaid.

The social mobility charity also found that interns on unpaid programmes in London faced monthly costs of £1,000.

Announcing the crackdown yesterday, Mr Griffiths said: “Employing unpaid interns as workers to avoid paying the national minimum wage is against the law and exploitative.

“No one should feel like they have to work for free to get the skills and experience they need to get ahead. That’s why government enforcement teams have been targeting employers advertising for unpaid interns.”

Under existing employment legislation, anyone classed as a worker must be paid.

However, campaigners have pointed out that this area of employment law is loosely enforced and many employers are either unaware of – or are deliberately shirking – their legal obligations.

In response, the Government has said it will review existing legislation in order to assess whether or not it is effective.