Unpaid internships might look like the perfect way to get some free labour while offering students a chance to gain some practical experience. But, before you jump into this arrangement, be warned: there’s a lot more to consider than just getting some extra (free) help. This week’s blog provides a short breakdown of the risks and what you need to know to avoid a potential legal minefield.
First, not all unpaid internships are created equal. To fly under the radar of the Employment Standards Act, 2000 (ESA), you need to satisfy the following conditions:
- Educational Purpose: The internship must be part of an educational program from a college, university, or high school, designed to give practical experience related to the intern’s studies.
- No Replacement Jobs: Interns can’t replace paid employees.
- Learning Over Earning: The focus should be on the intern’s learning experience, not the free labor you’re getting.
- Supervision Required: Interns should be mentored by someone with the knowledge to make sure the internship is educational, and not just a windfall to the employer.
If you can’t check off the above boxes, your “unpaid intern” might be an “employee” under the ESA, with all the rights and wages that come with it.
Calling someone an unpaid intern when they should be paid could land you in a lot of legal trouble. Expect fines, back pay claims, and a ton of legal headaches if you don’t comply with Ontario’s minimum wage laws.
Also, considering today’s social media age, no one wants to be known as the company that exploits eager interns. Negative publicity can hurt your brand and can anger your current employees.
In you are considering offering unpaid internships consider consulting a legal expert to keep your practices above board and avoid potential pitfalls. Top of Form
Robin K. Mann, Associate Lawyer