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Private companies are breaking the law and leaving themselves vulnerable to legal action if they employ unpaid interns, according to a report by the Institute for Public Policy Research and Internocracy.
Many companies believe they do not have to pay those on internships if both sides understand that the position is voluntary, but this is not the case under employment law.
Anyone working for a private company must receive no less than the minimum wage. However, surveys have found that only half the organisations using interns pay them at least this amount.
Should a current or former intern make a claim against a company, the employer could be deemed liable for up to six years' back pay. In addition, businesses in sectors that rely on employing unpaid interns could see their reputation tarnished, narrowing the pool of candidates that they can hire from.
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