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Too many firms are illegally taking advantage of graduates desperate for work experience, says Tanya de Grunwald, who is campaigning for an end to this 'race to the bottom'
To most people, the idea of going to work every day and not being paid is unthinkable. But for thousands of interns, this is the reality. We're not talking about just a couple of weeks' work experiebnce – new research from Interns Anonymous, shows that 26% of interns have done three or more placements and 39% of internships last three months or longer. Campaigners estimate at least 100,000 young people will work as an unpaid intern this year.
"The situation is completely out of control," says Alex Try, co-founder of InternsAnonymous, where interns swap horror stories about the worst placements. "Internships seem to be getting longer and longer, with less chance of a job at the end. Increasingly, it seems to be a myth that unpaid internships lead to paid, permanent jobs. Now, it seems, they are actually replacing paid, permanent jobs."
The issue is too often dismissed. "This isn't about whingeing 21-year-olds wanting to be paid to make the tea," agrees Ben Lyons, co-founder of pressure group Intern Aware. "Unpaid internships may seem harmless – beneficial even – but in fact the practice is hugely damaging. Those who do unpaid internships are exploited, while their poorer friends are excluded because they can't work for free."
Once confined to "glamour" industries like politics, media and fashion, unpaid internships have now spread to most sectors. Visitors to any of the big job boards will find advertisements for "intern architect", "HR intern" and "intern receptionist". Some of these roles will pay expenses (typically £100 a week); others won't pay a penny.
Competition for graduate jobs means recruiters can be choosy, and many graduates feel their demands have become unreasonable. Applicants are often expected to have a year of experience before being considered for what were once termed "entry-level" roles. Desperate graduates find themselves agreeing to work for nothing, accepting experience in lieu of a salary.
But graduates are finally wising up and agreeing that this situation is unsustainable and unfair. Of the 9,000 graduates who visit my website, Graduate Fog every month, most are angry. They have seen there is no pot of gold at the end of the rainbow – just another unpaid internship with another employer happy to take advantage of their desperation.
Yet there is confusion about the facts. So, if you're on an unpaid internship, or are considering doing one, – here are answers to the questions you're probably asking.
Are unpaid internships illegal?
In many cases, yes. There is no legal definition of an intern, but the national minimum wage (NMW) law says that anybody who qualifies as a worker must be paid at least £5.93 an hour if aged 21 and over, rising to £6.08 from 1 October. Do you have set hours and responsibilities? Are you contributing work that's of value to your employer? Then, unless the placement is part of your course, or your employer is a charity, it's likely the company is breaking the law in letting you work for nothing. "It's hard to believe this is illegal when so many companies are doing it, but it is," says Lyons. "This is a breach of UK employment law on an unprecedented scale."
What if I don't mind working for free?
You don't have the right to waive your wages, even if you say you'll accept experience as payment. The minimum wage is designed to set a floor below which pay cannot drop. That is not just to prevent those who do the jobs from being exploited, it's also to protect poorer applicants from being excluded from competing for the position because they can't afford to work for less. Without the minimum wage, desperate workers are left to compete in a "race to the bottom" where wages drop to zero for everybody. Unpaid internships may even have knock-on effects for paid staff too. "We are worried that unpaid internships may be dragging down starting salaries," Try says. "When you've been earning zero for six months, suddenly the minimum wage seems like a king's ransom."
If unpaid internships are illegal, why are they still happening?
Simple – the law isn't being enforced. The reasons for this are more complex. Some feel those in power simply don't "get it". This may also be a deceptively sensitive issue – given the economic climate; politicians are keen to encourage businesses, not criticise them. Others feel the fault lies with the reporting system run by HM Revenue & Customs, which many interns find intimidating – why would you report someone you're trying to impress? There may also be financial reasons for the issue being sidelined. A spokesperson for the Department for Business, Innovation & Skills told me that prosecuting those who use unpaid interns was "not a good use of public money".
How can I turn my unpaid internship into a job?
You may have more bargaining power than you realise, especially if you've already impressed your employer. Speak to your manager about whether there is a job available; never let your employer string you along with vague promises of paid work in the future. Odds-on, they'll mutter something about possibly having more budget in a few months' time. Say you understand and that you've loved working there, but you feel it's time to move on to somewhere that can offer a real chance of a paid job. Choose a date and tell them that's when you're leaving. Then apply for every job under the sun, so you have something lined up (even if it's another internship).
If they counter-offer with paid work before you go, you'll have two options. If they don't, they never had any intention of hiring you, so you've lost nothing. Interns often make the mistake of hanging around too long – three months should be your maximum stay in one place. Any longer and they'll think you don't value your own work.
How can I spot a good internship?
"For starters, it will pay at least the national minimum wage," says Becky Heath, co-founder of Internocracy, experts in best practice for internships. "Good quality internships will be advertised publicly and candidates will be required to interview. You should have a designated manager, a variety of tasks – and the placement should be structured to give you a proper taste of the workplace. They should also give you feedback and a reference at the end. If you're sorting the post and nobody knows your name, get out of there. It's a bad internship and a waste of your time."
What if I can't afford to work unpaid?
You have several options. You could book in one or two really good quality internships for a few months' time – and then work night and day temping, delivering pizzas or doing bar work to save money to support yourself during the internships. If that isn't an option, hunt for paid work in a field related to your chosen industry, then look out for ways to move across at a later stage (make sure you keep in touch with colleagues who leave).
Until recently, you couldn't claim jobseekers' allowance while you were doing an unpaid internship, but in some councils this has now changed, so you may be entitled to financial support. Contact your local Jobcentre Plus for more information.
I've been exploited – can I complain about my employer?
Yes, and you may be entitled to claim back pay, holiday pay and damages, even if you agreed to work unpaid. You will probably have to go to court though, so prepare for a long battle – but former interns Nicola Vetta and Keri Hudson have paved the way, so things should get easier. For more information, call the Pay and Work Rights Helpline on 0800 719 2368. If you'd like to complain anonymously about unpaid internships, the Low Pay Commission is accepting evidence for its annual report until 16 September (visit its website for details).
Is anything happening to change the situation?
Yes. The good news is that the UK boasts the most active – and vocal – interns' rights campaign in the world. During his recent visit to the UK, the American author of Intern Nation, Ross Perlin, declared us world leaders of this global fight. We are pressuring members of parliament to pay their interns – MPs Hazel Blears, Stella Creasy and Andy Burnham have been particularly supportive of this fight – and Nick Clegg is concerned, too.
Today I am launching Pay Your Interns, http://payyourinterns.com/an online campaign naming and shaming big companies that use unpaid interns. The university careers services are dragging their heels, but the TUC and NUS are backing interns – and the university newspapers are on board.
To join the fight, follow Intern Aware, Internocracy, Interns Anonymous and Graduate Fog. The more of us there are, the louder we can shout.
Tanya de Grunwald is founder of Graduate Fog
'Work for free, or give up the dream'
Tanya de Grunwald
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