What are internships?
Internships have been commonplace in Europe and the USA for some time. In Australia, we still have some catching up to do, but internships are becoming increasingly popular here too. Internships can be paid or unpaid engagements and are usually limited to a fixed period of time, typically in the range of three to twelve weeks. Unpaid interns are typically students who are required to complete a work placement as part of their course by an authorised education or training provider such as TAFE or a university. Paid interns, on the other hand, earn $25.32 per hour on average. Both unpaid and paid internships should always be subject to a formal written agreement between the intern and their host company.
Why should you consider offering internships in Australia?
The benefits of an internship for the intern are clear, but companies can also benefit from running an internship program. Here’s a closer look at the main benefits for companies:
Increased productivity
The obvious benefit is that an extra set of hands is generally always beneficial. You are likely to get more done and have a more productive workforce. After all, your regular staff may feel more inspired by having young talent around the office.
Qualified entry-level staff
Well-trained interns will make for great entry-level staff later on. If someone has already had the chance to familiarise themselves with the inner workings of your company, they’ll likely be an asset to the business if they apply for a regular position down the track. If they complete their internship at the end of their course of studies, they might be keen to stay on and transition to permanent employment right away.
More visibility
If your company offers internships, you will enjoy exposure on university and TAFE campuses. Your name will get around, and before you know it, you may find yourself the most sought-after company young talent wants to work for!
Fit for the future
On a more general level, internships give your business the opportunity to be actively involved in training Australia’s future workforce. If you choose to take on interns from overseas, in particular, the cultural diversity in your office increases and fresh ideas can emerge. Ultimately, any company can benefit from acting in a mentor capacity. Guiding and training the next generation can be very rewarding as it boosts morale and drives effective leadership in your company.
Related: How Hiring For ‘Culture Add’ Can Help Your Business Outshine the Rest
Legal regulations concerning interns in Australia
In 2016, the Federal Circuit Court imposed a $272,850 fine on a media company that required a young employee to work productively for extended periods of time without pay, calling it an internship. The harsh penalty was intended to discourage businesses from disguising employment relationships as unpaid internships. It goes without saying that being on the right side of the law is a must when dealing with interns so you don’t inadvertently find yourself in hot water. An employer who incorrectly classifies an actual employee as an intern might be liable to back-pay the intern as well as receiving a number of civil penalties. For the latest legal regulations and advice concerning internships in Australia, please always refer to the Fair Work guidelines.
Paid and unpaid internships
In Australia, internships can be paid or unpaid. It’s important to be aware of the differences and implications of both, for your own sake and that of your interns.
Paid internships
Paid internships are graduate positions offered by employers. If your company offers paid internships, you will be entering into employment contracts with your interns. This means that they are entitled to be paid minimum wages and subject to the working conditions laid out in the National Employment Standards.
Unpaid internships
Unpaid internships are usually work placements that have to be completed by students as part of their tertiary studies. Naturally, you don’t want to worry about being seen as potentially exploiting young workers. So it’s important that you are legally on the safe side if you decide to take on unpaid interns in your company. According to Fair Work Australia, unpaid internships are permitted if:
- the internship position is a student or vocational placement, and
- there’s no employment relationship between your company and the intern.
Fair Work’s ‘Unpaid work fact sheet‘ contains detailed information about unpaid work in Australia and what you need to watch out for. In particular, it states that unpaid internships are unproblematic if:
- the intern does not do any ‘productive’ work (which means their work does not contribute to the employer’s business in a meaningful way)
- the main benefit of the arrangement is to the intern rather than the company, and
- the intern is receiving a meaningful learning experience, training or skill development.
As long as you adhere to all of these points, you don’t have to be concerned about offering unpaid internships. If you have any doubt, it’s advisable to contact your local education providers or Fair Work Australia to confirm that you are not required to pay your interns.
How to find your interns
If you are looking to offer places to students who need to complete their required work placement, advertise on university and TAFE campuses. Tertiary institutions will have noticeboards and social media groups where you can have your internship opportunities publicised. For private-sector internships, a very simple and cost-effective way is to recruit your interns on Indeed. Our portal has different sections for different types of internships, such as:
You can also post your vacancy and specify the industry in which you are offering a place, e.g. media internships, or the location, e.g. Sydney internships.
Potential internship pitfalls
As with most things in life, offering internships comes with some potential pitfalls. It pays to look out for these issues to ensure you and your interns have a positive experience.
Visas for international interns
If you decide to hire an international student as an intern, it’s very important to make sure that they have the necessary paperwork in place. The correct visa is absolutely essential to avoid legal trouble for both parties. Suitable visas for interns from overseas may include the following:
- Training Visa 407 (which allows people to come to Australia on a temporary basis for occupational training or professional development, including paid internships)
- Working Holiday Visa 417 (which permits internships lasting between 6 and 26 weeks)
- Work and Holiday Visa 462 (which may also entitle certain holders to participate in paid internships)
As visa regulations change regularly, please always refer to the Department of Home Affairs website to ensure you are up to date on the latest information at all times.
Background checks
Some employers can be a bit lax when it comes to checking the backgrounds of interns. Permanent employees are usually fully vetted before they are approved, but interns can fly under the radar. Management may feel that conducting checks on individuals who will spend only a few weeks or months within the company is too expensive and not worthwhile. But if the intern engages in criminal activities, this may turn out to be a false economy. So it’s important that you vet your interns just like you would a full-time employee.
Once you are clear on the responsibilities of an employer who offers internships, it’s time to hire your first intern or set up your company’s internship program. Decide what type of internship you’d like to offer and where you will find suitable interns. Once they start, treat them with respect and you will reap the rewards in the future. Your interns could be your hiring pool for vacancies in your company for some time to come, so hiring an intern to learn and grow with your business can pay off long term. You never know what talents are hiding in your group of interns – and you have direct access to them without needing to sort through resumes or having to conduct time-consuming interviews. Just remember to seek legal advice if necessary and always check the latest official government guidelines.
