Retail surgery: Are we required to pay the national minimum wage to interns?

Internships are an excellent way of identifying future stars but failing to get it right could be costly. Alison Weatherhead, an employment specialist at law firm Maclay, Murray & Spens LLP, says retailers must consider the requirements being placed on the intern when assessing what, if anything, should be paid.

In most cases, where an intern is asked to carry out work, the national minimum wage is due. Those aged 21 and over must be paid £6.08 per hour, £4.98 per hour for workers aged 18 to 20 and £3.68 per hour for workers aged 16 to 17.

But there are exceptions. A retailer may only instruct an intern to carry out work, without triggering the national minimum wage, where the individual is a student carrying out the internship as part of a UK-based higher education or further education course and where the internship lasts for less than one year.

Aside from the exceptions, if a retailer opts to not pay a wage, the intern must do no more than shadow the employee. If they end up doing the work, the national minimum wage becomes due. There are different rules for charities.

Weatherhead warns of the consequences of ignoring the law: “Retailers risk having to pay arrears to workers, on top of a penalty payment. Refusal or wilful neglect to pay the national minimum wage is a criminal offence, with fines up to £5,000 per offence. Directors can also be held criminally liable where they connive or neglect to pay the national minimum wage.”