Unpaid Interns: Navigation starts here
Unpaid Interns – Navigation starts here!
Did you know that many so-called unpaid interns are really employees who are entitled to be paid? In Ontario, there is no law which permits an employer to unilaterally designate a person as an unpaid intern. Certain trainees and students however can be hired as unpaid interns.
A Trainee is not an Employee
Under the Employment Standards Act (the “ESA”) , a trainee is deemed not to be an employee. To qualify as a trainee under the ESA, six (6) conditions must be met such as a requirement that the training be similar to that which is given at a vocational school.
A Student taking an Approved Course is not an Employee
Under the ESA, an individual who performs work under a program approved by a college of applied arts and technology or a university is deemed not to be an employee. There are other work placement exceptions set out in the ESA.
An Employee is generally entitled to be paid Ontario’s Minimum wage
If a trainee does not meet the prescribed conditions, or a student does not satisfy the work placement requirements then a so-called intern could very well be entitled to be paid minimum wage for all hours worked. In addition, the intern may be entitled to additional compensation including vacation pay, statutory holiday pay and overtime pay.
Lessons to Be Learned
- Even if an individual agrees to participate in an unpaid internship the employer may still be liable to pay the person, among other things, minimum wage for all hours worked.
- An employer should enter into a written internship agreement with every intern and this agreement should set out the terms and conditions of the internship. If the person is being hired as a trainee within the meaning of the ESA then all prescribed conditions should be included in the agreement.
If you have any employment law questions, please call us at 1–888-640-1728 or email us at inquiry@macleodlawfirm.ca. You can follow us on twitter (@MacLeodLawFirm) or subscribe to our employment law blog at www.macleodlawfirm.ca/employers
The material and information in this blog and this website are for general information only. They should not be relied on as legal advice or opinion. The authors make no claims, promises, or guarantees about the accuracy, completeness, or adequacy of any information referred to in this blog or its links. No person should act or refrain from acting in reliance on any information found on this website or blog. Readers should obtain appropriate professional advice from a lawyer duly licensed in the relevant jurisdiction. These materials do not create a lawyer-client relationship between you and any of the authors or the MacLeod Law Firm.
Recent Posts
Is Secretly Recording A Workplace Conversation Just Cause for Termination?
More and more employees are secretly recording workplace conversations. Although it not is not a crime to secretly record a workplace conversation if you are a party to it, one judge recently concluded it is just cause for termination. This blog discusses this case....
Ontario Government Proposes More Employment Laws
In my last blog, I summarized some new employment laws that the Ontario government passed in December 2021. On February 28, 2022 the Ford government proposed more new employment legislation when it tabled Bill 88. This blog discusses three parts of Bill 88; that is,...
Employer Update: Recent Changes to Ontario’s Employment Standards Act
In December 2021, the Doug Ford government amended Ontario’s Employment Standards Act. This blog discusses two of these changes. 1. Prohibition against Non-Compete Agreements As of October 25, 2021, employers are prohibited from entering into employment contracts or...