What is internship?An internship is basically the opportunity offered to a person, usually a student, by an organization or corporation, for the purpose of learning a profession, skill, or trade. 

What is an internship contract?

An internship contract usually refers to the documented agreement regarding the mode of operation, terms and conditions, and duration of work an intern will have to adhere to for the period he/she is to intern at a firm. Its content is not limited only to the intern, but also to the firm or organization that is recruiting the intern.

In most countries, the internship contract is not directly or specifically regulated by law; it is subject to the whims of the parties involved in the agreement. In some cases, an internship contract may take the form of an employment contract, this is due in no small part to the similarities in essential elements of an employment contract, some of which are listed below;

Defining the position: An internship contract is similar to an employment contract in this regard because it also provides the intern with a clear understanding of the work requirements of the intern and his/her role in the firm or organization.Length of agreement: This refers to the part of the contract that gives indicates the extension, renewal, or termination of a contract.Performance expectation: For and intern, this is mainly the skills and work performance results that are expected of the intern during his/her time at the firm or organization.

It should be noted that there are more similarities in the elements of an employment contract as regarding internship contract than those mentioned above. Interns and real time employees usually enjoy different legal protection/benefits, largely because their roles, while similar, have some distinct differences. Although, there are cases where an internship contract may be referred to as an employment contract, in such cases, the intern is usually protected as an employee.

The major differences between an employee contract and internship contract are;

An employer’s willingness and obligation to pay salary.The presence of a relationship of authority.The employee’s obligation to perform work.The above listed factors may, in some cases, be found in an internship contract. This doesn’t necessarily mean the intern will become an employee or is referred to as such, obligations may still remain, but policy protection is likely to change.

In any case, the Supreme Court has ruled that if the activities of a person towards work are fundamentally oriented towards the expansion of knowledge and skill, the relationship between the employer and intern may not qualify as employment contract. You may be wondering that since there are cases where interns are paid actual salaries, then they should be more employees than interns. Well, it is true, paid interns aren’t your regular interns but if the internship agreement isn’t an employment contract, yet the intern is being paid, the internship contract will automatically be qualified as a Notional employment relationship. Notional employment relationship is the measure put in place to deal with terms like taxes, social security, etc.

If an intern is contributing to your company, has a list of duties and is working set hours, then technically, they should be paid the National Minimum Wage – CIPD.

DIFFERENCES ACROSS COUNTRIES 

Laws vary from country to country, although, some countries may share basic laws with other countries, practices are usually different when it comes to the finer points of law. In the UK, it is mandated that interns be paid the minimum wage if they serve the purpose of an employee to any relative extent. Same applies for other countries like Canada, Netherland etc.

In the United States

Unlike India and other major countries, there are actual laws governing the workings of interns in the US. The following is a list of standards that must be met to ascertain that an intern qualifies for unpaid work (U.S Department of Labour Wage and Hour Division);

The internship is similar to training that will be received in an academic environ0mentThe intern doesn’t replace permanent employees but works under close supervision with the existing employee(s)There is no ascertained job opportunity for the intern at the place of internship.The employer receives no direct benefits from the actions and activities of the intern as regards appointed duties.The employer and the intern both understand that the intern is not entitled to wages for the time spent as an internThe internship is experience is for the benefit of the intern.

If you’re a for-profit employer, there aren’t going to many circumstances where you can have an internship and not be paid and still be in compliance with the law. – Nancy J. Leping (acting director, DOL’s)

In India

There are no laws or policies set in place to define the operations of internship and all its facets. The Industrial Environmental Act 1946 is the only policy that remotely addresses the issue of internship, but it makes mention of apprentice as opposed to interns, and only applies to industrial establishments that employ more than 100 workers.

In China

The law in China concerning interns vary from state to state and city to city, the most obvious similarity between all is that no policy regarding interns allow foreign companies use interns without an added incentive, most especially when labor protections are not set in.

REFERENCES

BIS, National Minimum Wage, worker checklist 2011

Low Pay Commission, National Minimum Wage, April 2013, pp131

Article 3(1)(e) of the Dutch Wages and Salaries Tax Act 1964

Michael R. B. Employment Law Issues for Interns, 2014, pp3.