Toiling for free? That unpaid internship could be illegal

Unpaid internships can provide young people with valuable job experience, but the vast majority of internships offered in Ontario are illegal.

The Employment Standards Act (ESA) regulates employment relationships between employers and employees. Interns are generally considered to be employees, and must be paid at least the Ontario minimum wage (generally $10.25 per hour).

Co-op programs or official work terms approved by a college of applied arts and technology or a university are exempted from the minimum wage requirement. An organization can also hire an unpaid trainee if all six of the conditions below are met.

1. The training is similar to that which is given in a vocational school.

2. The training is for the benefit of the individual.

3. The person providing the training derives little, if any, benefit from the activity of the individual while he/she is being trained.

4. The individual does not displace employees of the person providing the training.

5. The individual is not accorded a right to become an employee of the person providing the training.

6. The individual is advised that he or she will receive no compensation for the time that he or she spends in training.

Because the employer is clearly receiving economic benefit when interns make copies, do research or write articles, labour and employment lawyer Andrew Langille says the ESA requires that they be paid at least minimum wage. The trainee may also be displacing other employees or potential entry level hires.

Furthermore, Langille says in some cases three or four month unpaid internships are repeatedly extended for up to a year or more. “Employers can easily exploit the legislation and call entry level workers interns. We’ve seen the term ‘independent contractor’ similarly abused by some employers trying to avoid ESA requirements.”

Examples of organizations that have recently advertised for unpaid interns include: Oxfam Canada (Information Technology Assistant); Totem Press (Editorial Assistant); Ninja9 (Marketing Internship); Moony on Theatre (Volunteer Assistant Editors); and Toronto Life (four concurrent Editorial Interns).

Langille acknowledges that unpaid internships can give young people valuable experience and networking opportunities. Nevertheless, he is concerned that because it could be “career suicide” to pursue an ESA claim against an employer, individuals working in one of these positions have effectively been denied access to justice.

And with unemployment for youth ages 20-24 (15 per cent) twice as high as the overall national unemployment level, he believes unpaid internships are a symptom of a wider policy gap in the province.

“The Ontario government needs to shift their focus from keeping kids in school longer to what happens when skilled young people are ready to enter the labour force. We are training these people to be future leaders, but at the same time we are asking them to put their life on hold and work in largely unregulated, unpaid jobs early in their careers.”

Unpaid interns can clarify whether or not they are entitled to minimum wages by calling the Employment Standards Information Centre toll-free at 1-800-531-5551.

Also see: Worst summer job? Cleaning university toilets  and 7 good websites to help find a summer job.