Internship - Work Experience or Exploitation?

The recently decided case of The Fair Work Ombudsman v Crocmedia Pty Ltd provided a hard learned lesson for employers about the importance of correctly classifying and remunerating employees. The case highlights the importance of understanding that employment relationships have a legal definition and employer's cannot simply dressed up employment as an unpaid internship or work experience in order to escape any obligation to remunerate pursuant to the Fair Work Act 2009 ("FWA").

The decision in this case followed a report released for the Fair Work Ombudsman conducted by Adelaide University Law School in January 2013, which examined whether unpaid work engagements are considered experience or exploitation. The report noted the rise of unpaid work arrangements in Australia. It also found a corresponding increase in employers engaging in illegal work practices in this regard contrary to the requirements of the FWA.