CIPD calls for end to unpaid internships
Monday, 28 June 2010A new policy paper from the Chartered Institute of Personnel and Development has called for an end to unpaid internships for university students - and the introduction of a new ‘training wage'.
The CIPD's own research reveals that, at present, more than a third (37%) of internships are unpaid. The new paper - ‘Internships: To Pay or not To Pay?' - proposes that all interns should be paid a guaranteed minimum wage, arguing that this would help to reflect the contribution they're likely to make to their organisations. It should also help to promote social mobility by encouraging people from poorer backgrounds to apply.
The intention would be for the proposed training wage (of £2.50 an hour, which is also the current minimum rate for apprentices) to cover all interns and apprentices, regardless of occupation or industry sector. Under the proposals, any position advertised as an internship would automatically trigger a legal obligation on the part of the employer to pay "at least the training wage" throughout the duration of the internship.
The policy paper also recommends the widespread dissemination of a new code of best practice (building on the Institute's own ‘Internships That Work: A guide for employers', published last year) to help improve the quality of programmes. In addition, it recommends further consideration of working rights (e.g. sick pay) that interns should be entitled to, and discussions on the possibility of regional pay variations to reflect local differences in the cost of living.
CIPD skills adviser Tom Richmond says: "The continued existence of a major loophole in the national minimum wage legislation has created a lot of confusion and concern around the issue of whether interns should be paid or not... the creation of the training wage would represent a significant step to ensuring that internships promote social mobility, provide young people with valuable experience, and help tackle exploitation in the workplace. What's more, organisations would still be able to recruit young talent at a reasonable rate during this difficult economic period and beyond."
