Internships can be a great way to bring on board some extra help and they provide a valuable opportunity for inexperienced candidates to get their foot in the door. But how do you determine whether or not an internship should be paid?
Is it up to you as the owner? And can you opt to fill a position with an unpaid intern? Our resident HR expert, Lisa has the facts.
“When recruiting for an intern, the decision on whether it needs to be a paid or unpaid position is based on whether or not there will be an employment relationship.
So, how do you determine this? Consider the following indicators:
🤚Reason for the arrangement :: If the purpose of the internship is to give the person work experience, it is less likely to be an employment relationship. But if the person is doing work to help with the ordinary operation of the business, it may be an employment relationship.
🤚Length of time :: Generally, the longer the period of the arrangement, the more likely the person is an employee.
🤚Significance to the business :: Is the work normally done by paid employees? Does the business need this work to be done? If the person is doing work that would otherwise be done by an employee, or it’s work that the business has to do, it’s more likely the person is an employee.
🤚What is the person is doing? :: Although the person may do some productive activities as part of a learning experience, they’re less likely to be an employee if they aren’t expected or required by the business to come to work or do productive activities.
🤚Who’s getting the benefit? :: The person who’s doing the work should get the main benefit from the arrangement. If a business is getting the main benefit from engaging the person and their work, it’s more likely the person is an employee.”
Do you need some HR help determining the ins-and-outs of internships? Contact Lisa on (07) 4638 3599 to book your a free, one-hour, no-obligation HR business consultation.