So, your company is engaging unpaid interns. If you’ve read our previous article, Unpaid Internships: Guidance for Employers, you would understand that it is lawful to do so.
As the company won’t be paying these interns, there’s no need to have a written agreement in place … right?
Wrong.
While your Company may lawfully be engaging unpaid interns, you could potentially be left exposed if you don’t have a written Agreement which addresses:
1. The fact that they are an unpaid intern:
This one sounds obvious, but it could save a lot of potential trouble down the line. Make sure your organisation has a signed agreement in place which expressly states that this person is performing duties as an intern and not as an employee.
2. Their obligation to maintain confidentiality:
Interns might be unpaid, but they can still be obliged to maintain confidential information. This is especially true if your business has obligations regarding your clients’ confidentiality. You have a duty to clearly communicate this obligation to any intern.
3. Compliance with workplace policies:
Although unpaid interns aren’t on the company payroll, they will have rights and responsibilities arising under many workplace policies. For example, the anti-bullying legislation contained in the Fair Work Act 2009 (Cth) specifically provides that unpaid workers or volunteers are covered by the scope of this legislation.
You should ensure that you take all reasonable steps to make unpaid interns aware of their rights and responsibilities in the workplace.
4. Background checks:
Your organisation may require Criminal Records checks or Working with Children checks to be carried out. This should be noted in the workplace agreement. In the event your organisation is subject to an audit or inspection, for example by the Ombudsman, it’s important to show that you impose these requirements on everyone engaged, including unpaid interns.
5. Workers compensation:
Is your company required to have workers’ compensation cover for the unpaid intern? What about public liability insurance? Save yourself a lot of unnecessary conflict and ensure you’re fully aware of your potential liability for acts done to or by your unpaid intern.
Contact JFM Law on (02) 9199 8597 for a no obligation chat. If you would rather get in contact through email, send your question through or by email at wehelp@jfmlaw.com.au.
The information contained in this post is current at the date of editing – 6 June 2024.
