The Fair Work Ombudsman has announced an investigation into the
way Australian businesses and organisations are approaching work
experience placements, internships and unpaid 'trial
periods'. There is concern that many young people undertaking
these arrangements are actually performing the roles of
'employees' and should be entitled to be paid for their
services. The investigation may result in changes to the Fair
Work Act 2009 (Cth) (FW Act).
Who is an employee?
Any person, whether engaged as an intern, work experience
student or volunteer, should be paid a wage if that person can be
defined as an 'employee' of the business.
The FW Act does not define who is an employee, but does
expressly exclude from the definition of an employee any person
undertaking a 'vocational placement'. Vocational placements
are unpaid placements undertaken as a requirement of an education
or training course (section 12 of the FW Act).