Hopefully someone can offer advice here – we are just about to offer a 3 month placement/internship (whatever you want to call it) to a recent graduate. We are just about to send her a letter to confirm as such – how much we’ll pay her etc.

My question is, does she get any ’employment’ rights (sick pay, holiday pay accrual etc) as a full time ’employed’ person?

Are there any other potential pitfalls that we should cover ourselves against?

Interns are unpaid working for you to gain experience. If you’re offering a job at the end of the period or pay then they are classed as an employee on a trial period with the normal entitlement to holiday pay etc.

http://www.out-law.com/topics/employment/employment-status/how-to-ensure-that-volunteers-and-interns-do-not-acquire-employment-rights/

https://www.gov.uk/employment-rights-for-interns

Is she pretty? Photo.

Yes this is relevant.

This one is paid (to cover travel costs and basic living costs) we don’t believe in long term unpaid work, it’s unfair.

And this is why it worries me, by paying her are we inferring any further responsibilities to her?

Sandwicheater, I’ll decline to comment on that one 😉

This one is paid (to cover travel costs and basic living costs) we don’t believe in long term unpaid work, it’s unfair

Good for you. A great example to set.

If you’re covering her receipted expenses only then that is fine. If you pay her to do a job that she completes in her time without supervision from yourself then she is a worker (self-employed). You tell her what time she needs to be at work by, pay her to do a job that you supervise or a weekly allowance then she is an employee with the same rights to sick and holiday pay as any other employee.

Regardless of beliefs on pay that is how the law interprets your relationship and if things go pear shaped then you need to ensure you both know where you stand.

Good for you. A great example to set.

Careful now, you’re starting to sound like some crazy left wing socialist who believes in valuing workers…..

****seek real legal advice*****

your contract to her should outline the T&C’s that you are offering just need to cross reference those against your obligations which as you have guessed may be complex, especially as she won’t be getting paid min wage but will be getting paid if that makes sense.

Just had a similar case with a client hence my response. The intern was taken on, given £100 a week plus expenses. The client was also stated verbally that if he proved himself then there would be a position available.
The intern was let go before the end of the 3 months. A solicitors letter followed stating the employee had been unfairly dismissed. The crux of the letter was unpaid wages and accrued holiday. Client stupidly argued that contract stated the terms. A further letter appeared stating employment contract breached the employees statutory rights and the employee had put a complaint into HMRC. Result was £1850 fine, just short of £4000 in unpaid wages and holiday due it been calculated on the average rate for a trainee. Then to top it all off separate HMRC compliance visits for PAYE and VAT.
As Mike said take legal advice as best intentions can be turned around to bite you back.
There is nothing stopping you from back dating the pay if you decide to take them on at a later date.

jambourgie – Member
This one is paid (to cover travel costs and basic living costs) we don’t believe in long term unpaid work, it’s unfair
Good for you. A great example to set.

Just reading the above link, we are actually paying her more than NMW. (£50 a day).

In that case you have answered your own question as you are paying her a minimum wage so she is an employee with statutory rights.

Yes if you’re paying her then you need to make sure it’s above minimum wage and give her the statutory rights to holiday etc. 8hr day is £50.48 per day, don’t scrimp on the 50p as it’s not worth the aggro risk.

Travel costs to a place of work and contribution to living expenses etc that would fall as salary in HMRC’s eyes, you’d struggle to argue it was expenses. They’d see her as a paid employee.

You can’t really cover against any pitfalls the risk is there anyway – just make sure she’s not pregnant and hire her after the bank holiay to minimise the holiday allowance 😉

It is bleeding barmy though – we could pay her eff all and not have to worry, but by being a fair employer, we get additional stress and concern!

Who makes this shit up?

It’s a bit crap but you’d probably end up with some less reputable companies exploiting rolling paid internships if you could employ someone on min wage but not give them employment rights

It is bleeding barmy though – we could pay her eff all and not have to worry, but by being a fair employer, we get additional stress and concern!

Not really, there isn’t really any such thing as an intern in the UK. If they’ve graduated and are entering work, then assuming that you are actually a company and they are doing something for you then they are entitled to minimum wage, and all the benefits of a worker. You can probably escape sick pay and maternity if they aren’t doing regular work but that’s about it.

The only way around this would be if they were purely watching what you were doing, not actually doing anything themselves, (I’m assuming this isn’t the case as it would be a bit barmy to pay someone a salary for 3 months to get nothing out of it yourselves) or if you were a charity or similar.

Why not actually employ her? You can sack her (within reason) for whatever you want within the first six months, so if she’s useless your problem is solved.