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Crackdown on unpaid interns hired by top firms

HUNDREDS of companies could be named, shamed and even prosecuted amid a crackdown on unpaid internships across the UK.

Anne Hathaway serves as office dogsbody in The Devil Wears Prada. Picture: Supplied
Anne Hathaway serves as office dogsbody in The Devil Wears Prada. Picture: Supplied

HUNDREDS of companies are being investigated by the taxman for potentially breaking the law by using unpaid interns to fill job vacancies.

The firms - believed to include some household names - could be fined, named and shamed and even prosecuted if they are found to be failing to pay workers the national minimum wage.

The UK's Department for Business, Innovation and Skills announced a crackdown amid fears interns are being exploited by working for free in what are effectively full-time occupations.

HM Revenue and Customs (HMRC) is writing to 200 employers which recently advertised unpaid internships.

The employers are to be warned about a series of imminent 'targeted checks' to make sure interns are being paid the correct national minimum wage - currently Pound6.31 an hour for people aged over 21.

HMRC's assistant director of National Minimum Wage Michelle Wyer said: 'Any employer not playing by the 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 or a prosecution.'

The action comes after Intern Aware, which campaigns against abuses of the internship process, passed the government a list of more than 100 companies which were advertising unpaid work in April. HMRC has also collated details of firms that could be flouting the law.

Businesses are free to offer work experience but are breaking employment law if the position lasts for a prolonged period with set hours and duties - unless they pay at least the minimum wage.

UK Employment minister Jo Swinson said: "Already, this year HMRC has issued penalties to 466 employers. We will continue to work closely with HMRC to clamp down on rogue employers."

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Original URL: https://www.news.com.au/finance/work/crackdown-on-unpaid-interns-hired-by-top-firms/news-story/004cf5a966d2b37e07dba9a13ac9b67d