Government targets employers taking on interns to tackle exploitation

Anna Scott

HM Revenue & Customs is to carry out a series of targeted checks on 200 employers who have recently advertised intern opportunities and unpaid work.

As part of government plans to crack down on the exploitation of interns – including illegal non-payment of the national minimum wage – the tax department has written to the businesses alerting them of the checks.

This follows enforcement activity focused on London Fashion Week in 2012 which found two employers not complying with NMW law and resulted in the two workers involved being repaid their unpaid wages. The checks also resulted in a significant change in behaviour in businesses in the fashion sector including appropriate payroll record-keeping.

The checks are part of government plans to crack down on the exploitation of interns. The Department for Business, Innovation and Skills has also launched guidance for young people uncertain about their pay rights.

A campaign of videos and posters produced by BIS with Channel 4’s in-house internship scheme 4Talent aim to explain to people leaving education what their rights are in relation to being paid the NMW, where to go for more information and what action they can take if they feel they have been exploited.

“Leaving education and getting a job for the first time can be daunting for any young person,” said Jo Swinson, employment relations minister. “Internships can provide an important first step and are often a valuable way of helping young people start work. They should be open to everyone in a fair and transparent way.

“Not paying the NMW is illegal and if an employer breaks the law, government will take tough action. Already this year HMRC has issued penalties to 466 employers. Anyone considered a worker under the law should be paid at least the minimum wage, whether they are an intern, or someone on work experience.”

HMRC’s assistant director of NMW, Michelle Wyer, added: “Any employer not playing by the NMW rules needs to put things right now. Those that don’t can expect a visit from HMRC – which could result in a penalty, payment of arrears, being publicly named and shamed by BIS or a prosecution.”