Home topics small-business-resources legal instructor teaches steel construction trainee how to use an angle grinder Education | Training Expert HR Education | Training Internships: A potential minefield for employers Brittany Smeed December 3, 2015 As the job market becomes increasingly competitive for university graduates, many students and young professionals are willing to take on unpaid internships to gain experience in their chosen industry. This practice is widespread in the United States, where a laissez faire approach to workplace relations means businesses can benefit from taking on unpaid workers. But Australian employment law creates strict rules about internships, and as this trend becomes more popular in Australia the Fair Work Ombudsman is cracking down on businesses that take advantage of these arrangements. So while hiring an intern might seem like a great opportunity to inject some fresh blood into your organisation, make sure you consider the risks involved before jumping on the bandwagon. Employee or intern – what’s the difference? An unpaid internship is only allowed under the Fair Work Act 2009 if no employment relationship exists. Otherwise, the worker should be employed in accordance with the national employment standards and be paid minimum wage. So what exactly is an “employment relationship”? Because employment relationships are assessed on a case by case basis, there is no hard and fast rule. As a general guide, you should consider the following factors: Type of Work What kind of work will the intern be doing? Their role should be mostly observational, such as shadowing