{"id":493341,"date":"2026-03-24T22:11:08","date_gmt":"2026-03-24T22:11:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/493341\/"},"modified":"2026-03-24T22:11:08","modified_gmt":"2026-03-24T22:11:08","slug":"unpaid-internships-has-labour-quietly-abandoned-its-ban-employee-rights-labour-relations","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/493341\/","title":{"rendered":"Unpaid Internships: Has Labour Quietly Abandoned Its Ban? – Employee Rights\/ Labour Relations"},"content":{"rendered":"

<\/p>\n

LS<\/p>\n

<\/p>\n

Lewis Silkin<\/p>\n


\n <\/a><\/p>\n

More<\/p>\n


\n <\/p>\n


\n \"Lewis
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\nWe have two things at our core: people \u2013 both ours and yours – and a focus on creativity, technology and innovation.
\nWhether you are a fast growth start up or a large multinational business, we help you realise the potential in your people and navigate your strategic HR and legal issues, both nationally and internationally. Our award-winning employment team is one of the largest in the UK, with dedicated specialists in all areas of employment law and a track record of leading precedent setting cases on issues of the day. The team\u2019s breadth of expertise is unrivalled and includes HR consultants as well as experts across specialisms including employment, immigration, data, tax and reward, health and safety, reputation management, dispute resolution, corporate and workplace environment. \n <\/p>\n

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\n The government has retreated from its manifesto promise to ban unpaid internships, opting instead for guidance and enforcement. \n <\/p>\n


\n United Kingdom
\n Employment and HR \n <\/p>\n


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The government has retreated from its manifesto promise
\nto ban unpaid internships, opting instead for guidance and
\nenforcement. We look at what this means for employers and why you
\nshould review your internship arrangements now.<\/p>\n

In July last year, we explored Labour’s commitment to ban
\nunpaid internships as part of its New Deal for Working People (see here<\/a>). The government had pledged to
\noutlaw unpaid internships “except where they are part of an
\neducation or training course”, framing the policy as central
\nto its social mobility agenda. Now, following the government’s
\nresponse to its Call for Evidence, the government’s next steps
\nare clearer, albeit more tentative than previously suggested.<\/p>\n

What did Labour originally promise?<\/p>\n

The manifesto commitment was clear: unpaid internships would be
\nbanned unless they formed part of a formal educational or training
\ncourse.<\/p>\n

Similarly, the policy rationale was straightforward: unpaid
\ninternships disproportionately benefit those who can afford to work
\nfor free – typically young people from more affluent backgrounds
\nwith family support. Research from the Sutton Trust found that 61%
\nof internships undertaken by recent graduates were unpaid or
\nunderpaid, and graduates from working-class backgrounds were less
\nlikely to undertake an internship than their middle-class peers. A
\nban, the argument went, would level the playing field and open up
\nopportunities in competitive industries to a broader range of
\ncandidates.<\/p>\n

What happened next?<\/p>\n

In July 2025, rather than introducing legislation, the
\ngovernment launched a Call for Evidence. Business Secretary
\nJonathan Reynolds explained the aim was to gather information on
\nhow unpaid internships affect young people and how businesses use
\nthem to assess candidates. The Call for Evidence closed in October
\n2025, and the government published its response in late February
\n2026.<\/p>\n

Is there going to be a ban?<\/p>\n

In short, no\u2014at least not for now. Instead, the
\ngovernment’s response focuses on three alternative
\nmeasures:<\/p>\n


\nGuidance:\u00a0updating and expanding the
\nNational Minimum Wage guidance so employers better comply with the
\nlaw and workers are better aware of their rights.
\n
\nEnforcement:\u00a0continuing to crackdown on
\nemployers breaking the law through existing enforcement channels
\nand the Fair Work Agency (due to launch in April 2026).
\n
\nEducation and awareness:\u00a0raising
\nawareness of workers’ rights through communications campaigns
\nto help young people understand their rights and what action they
\ncan take if they are not being paid what they are legally entitled
\nto. <\/p>\n

The government has not ruled out legislative change in the
\nfuture, stating it remains “committed to ensuring young people
\nhave a fair chance at the start of their careers”.<\/p>\n

Why has the government changed course?<\/p>\n

The government has not explicitly explained why it departed from
\nits manifesto commitment. However, several factors are likely to
\nhave influenced the decision:<\/p>\n


\nUnintended consequences:\u00a0the Call for
\nEvidence gathered views from businesses on how they use
\ninternships, and some may have warned about unintended consequences
\n– for example, that a ban could lead employers to stop offering
\nwork experience altogether rather than pay for it.
\n
\nDefinitional challenges:\u00a0the term
\n“intern” has no legal meaning, and distinguishing between
\nlawful work experience, volunteering, and exploitative unpaid
\ninternships is complex and would present drafting challenges.
\n
\nParliamentary time:\u00a0with the raft of
\nchanges and consultation currently taking place in relation to the
\nEmployment Rights Act, the government may have concluded that a ban
\nwas not the most efficient use of its legislative bandwidth. <\/p>\n

What is the current legal position?<\/p>\n

The crucial point is that there is already a risk to having
\nunpaid working interns. The absence of a statutory ban does not
\nmean that failing to pay interns is legal. Under existing law,
\nanyone who qualifies as an \u201cemployee\u201d or
\n“worker” must be paid at least the National Minimum Wage.
\nThe key question, therefore, is whether an intern meets the legal
\ndefinition of employee or worker.<\/p>\n

A person is likely to be a worker if they are required to
\nperform work personally for the organisation, there is mutuality of
\nobligation (the employer must provide work and the individual must
\ndo it), and there is some form of contract or arrangement between
\nthe parties. This does not have to be a written contract and even
\nin circumstances where a contract is in place an individual could
\nbe determined to be a worker.<\/p>\n

So, in practice, if an intern turns up regularly, performs tasks
\nthat benefit the business, follows instructions, and would face
\nconsequences for not attending, they are very likely to be a worker
\n-regardless of what their arrangement is called. Labelling someone
\nan “intern” or “work experience student” does
\nnot determine their legal status.<\/p>\n

There may be genuine circumstances where an individual
\nundertaking work experience or an internship may lawfully remain
\nunpaid. For example, where the arrangement involves genuine work
\nshadowing, with the individual observing rather than performing
\nsubstantive work. That said, determining an intern’s employment
\nstatus can be a grey area in practice, and legal advice should be
\nsought in relation to any specific arrangements.<\/p>\n

What does this mean for employers?<\/p>\n

While the practical position for employers may not have
\nfundamentally changed, but the enforcement environment is about to
\nget tougher.<\/p>\n

The Fair Work Agency will have powers to investigate National
\nMinimum Wage breaches and take action against non-compliant
\nemployers. The government has indicated that the Agency will
\n“crack down” on unscrupulous employers, and we expect
\ninterns to be a focus area given the policy attention this issue
\nhas received.\u00a0You can read more about this here<\/a>.<\/p>\n

What should you do now?<\/p>\n

The absence of a new ban is not a green light for unpaid
\ninternships: the legal risks remain and enforcement is set to
\nintensify.<\/p>\n

For that reason, we would encourage employers to:<\/p>\n


\nReview your internship arrangements.\u00a0Do
\nyou have unpaid interns or work experience placements? Assess
\nwhether they genuinely can be unpaid. If they are doing productive
\nwork that benefits the business, they may be entitled to pay.
\n
\nDon’t rely on labels.\u00a0Calling someone
\nan “intern”, “volunteer”, or “work
\nexperience student” does not determine their legal status.
\nTribunals will look at the reality of the arrangement. Carrying out
\nan audit will help demonstrate your rationale for any conclusions
\nyou come to.
\n
\nCheck your documentation.\u00a0Do your
\ninternship agreements reflect the true nature of the arrangement?
\nPoorly drafted agreements can create ambiguity and risk.
\n
\nThink about social mobility.\u00a0Unpaid
\ninternships may undermine efforts to attract diverse talent. Paying
\ninterns opens up opportunities to candidates who cannot afford to
\nwork for free. <\/p>\n

The content of this article is intended to provide a general
\nguide to the subject matter. Specialist advice should be sought
\nabout your specific circumstances.<\/p>\n

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