D-Studio Architects Pty Ltd: Student Underpaid During Internship

An architecture firm has agreed to back pay a student intern $6,380 after a Fair Work Ombudsman investigation found that the student was underpaid the modern award rate during his 11-month internship.

The investigation serves as a reminder that employers should not use young workers looking for experience as a source of cheap labour and that minimum employment standards are still applicable even if the relationship is internally characterised as an internship.

Background

The student approached D-Studio Architects Pty Ltd (the architecture firm) in late 2013 about completing an internship with them. The student, who was in his late 20s, was in the final stages of his master’s architecture degree.

The internship however did not fall within the vocational placement exception of the Fair Work Act 2009 (Cth) (the Act) as it was not accredited by his university or part of his university studies. After the architecture firm agreed to take him on, the student worked four days a week throughout his internship. The student intern did productive work for the architecture firm including consulting with clients and conducting site visits.

Throughout his internship, the student intern was paid $12 an hour. The student contacted the Fair Work Ombudsman to receive information about minimum wages and then supplied that information to the architecture firm and asked them to review his salary, which was ignored by them. In light of this, the student lodged an official complaint with the Fair Work Ombudsman.

Investigation by Fair Work Ombudsman

The Ombudsman launched an investigation. It found that as the student intern was completing productive work for the firm, he should have been paid under the Architects Award 2010 (Cth). This meant that whilst still completing his studies, the student intern should have been paid $16.37 per hour, which then should have increased to $21.19 after graduation. The architecture firm also did not provide the student with proper annual leave entitlements or provide him with pay slips as is provided under the Act.

Corrective action taken by architecture firm

Following the investigation, the architecture firm agreed to back pay the student intern the amount it owed him of $6,380. It also agreed to sign an enforceable undertaking promising to comply with future workplace obligations including to do with interns.

The Fair Work Ombudsman will use enforceable undertakings where an employer is prepared to voluntarily rectify the issue and the employer agrees to preventative actions for the future. It is possible for the Fair Work Ombudsman to apply to the Fair Work Commission if the agreed undertakings are not complied with. In this case, the architecture firm agreed to complete all education courses available on the Fair Work Ombudsman’s website, register with the Fair Work Ombudsman “My Account” portal of its minimum payment obligations and self-audit its compliance with Commonwealth industrial instruments and workplace laws.

The architecture firm also agreed to donate $500 to Interns Australia, a not-for-profit group set up to advocate on behalf of interns.

Comment by Fair Work Ombudsman

Fair Work Ombudsman Natalie James, says employers need to be aware that they are at risk of breaching workplace laws if they use unpaid work schemes as a source of free or cheap labour:

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Company signs up to workplace pact after underpaying student intern almost $7000 – Article from fairwork.gov.au

Employer underpays during internship – Article from justitia.com.au