Fair Work Report Confirms Unpaid Internships Illegal in Australia

Fair Work Australia has launched a crackdown on unpaid internships, drawing attention to the fact that they are prohibited under the Fair Work Act.  

A new report released today confirms that unpaid internships and job trial arrangements are illegal but are nevertheless increasing in Australia. New research shows young graduates are at particular risk of being exploited. Professor Stewart, University of Adelaide professor of law, is one of the report's authors. He said it is difficult to say how many Australians are doing unpaid work experience or internships but it appears to be common practice in most professions and the hospitality, hair and beauty industries.

The Fair Work Ombudsman Nicholas Wilson, who commissioned the report, recently said, "the advice I'd have to any person in that category would be to say 'look, don't do that'," he said "It really is putting you at risk of being a long-term unpaid person."

Professor Stewart made clear the unlawfulness of some unpaid work arrangements: "it's clear from the Fair Work Act that if you are doing work experience as part of an authorised educational training course, then that's perfectly OK, outside that, if you've got a pretty firm agreement with your employer, (and it doesn't have to be in writing) to come into work and to get something in return, and that might be just experience or being able to add to your resume, your CV, that is capable at law of amounting to an employment contract, [you] therefore should be paid at least the minimum wage."

He says acceptance of the practice has broad implications for the labour market in terms of reducing the number of paid entry-level jobs. The Fair Work Ombudsman will now be focusing on educating employers and employees about work experience rights and obligations. The Ombudsman’s office will also be convening a forum in late February for councils of unions and employer groups, and conducting targeted field inspections over the next few months.  

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