Unpaid internships under growing government scrutiny
The government has launched a 12-week call for evidence on unpaid internships, work trials, voluntary roles and work shadowing as part of its “Make Work Pay” agenda. The stated aim is to strengthen protections for young workers, tackle non-compliance with the National Minimum Wage (NMW) and ensure that opportunities are accessible regardless of background. The consultation runs until 9 October 2025, with a response expected early next year.
The government is particularly concerned about unpaid internships and other unpaid roles that may be misclassified, leading to NMW breaches. Under current rules, students enrolled at UK further or higher education institutions do not have to be paid the NMW if they are undertaking a compulsory work placement that lasts no longer than 12 months and forms part of their course. This exemption does not apply to UK or international students if the internship is part of an educational course based outside the UK – in those cases, the NMW applies. The government is seeking views on whether this exemption should be amended or removed, alongside feedback on when and why interns are unpaid or paid below NMW, and whether the term “intern” should be defined in law.
The call for evidence also addresses unpaid work trials, which are not defined in legislation and can be open to abuse. While such trials can be lawful if genuinely used to assess a candidate’s suitability for a role, government guidance is that NMW may still apply depending on the circumstances – such as the trial’s length, whether the tasks have value to the employer beyond assessment, and whether the process is being used to reduce labour costs.
For voluntary roles, the document distinguishes between “voluntary workers” (who have a contract but are not entitled to the NMW if strict criteria are met) and “volunteers” (who are not workers, have no obligation to provide services, and are not entitled to NMW). The government is also seeking evidence on work shadowing, which involves observation only and is not currently defined in law, to assess whether a clearer definition or further safeguards are needed.
Whatever the eventual outcome, it is clear that reform may well be on the horizon. Taking a proactive approach now – by reviewing policies, training managers on NMW obligations, and embedding good practice in recruitment – will put employers in a stronger position to adapt quickly in the event that new rules are implemented.
Please contact our employment law team for more information or advice on internships.
This call for evidence seeks to understand in which circumstances interns are not paid or are paid below the National Minimum Wage and the reasons for this. Ensuring interns are appropriately remunerated will enhance social mobility and help interns get the vital skills and experience they need to succeed.