Date 13 January 2011
The Government is being encouraged by the Chartered Institute of Personnel and Development (CIPD) to introduce a training wage for interns who work for three months or more, at a rate of £2.50 per hour.
The CIPD believe that this measure will help to increase the productivity of UK business and implement a fairer system for those working as interns. Intern schemes may, as a result, become more appealing to graduates who are currently struggling to find employment. The proposals have been welcomed by critics of unpaid employment, who believe that it should be unlawful for companies to offer unpaid internships.
However, there is a fear that implementation of the CIPD’s proposals will stop small businesses from offering internships. Those small companies still feeling the effects of the economic downturn will not want to incur further cost in taking on interns, and this could result in such schemes becoming less popular.
If the proposals are brought into force by the Government, there will need to be safeguards in place to ensure that companies are properly remunerating interns for work done. It remains to be seen how this issue will develop.
Should you require any specific advice on matters raised in this article, please contact the Employment Team at SA Law on 01727 798000
© SA LAW 2011
Every care is taken in the preparation of our articles. However, no responsibility can be accepted to any person who acts on the basis of information contained in them. You are recommended to obtain specific advice in respect of individual cases.