ARTICLE · 08 AUGUST 2014

To pay or not to pay [for work experience] ... that is the question

Sparke Helmore Lawyers

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Unpaid work experience may be a great opportunity for a person looking to break into the workforce, but is it lawful?

AustraliaEmployment and HR

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Recently, there have been an increasing number of people entering the workforce by way of unpaid work experience or internships. I'm sure many of you have had a young graduate approach you seeking an opportunity. "I'm happy to do it for free", they say. "Sure", you think to yourself, "they're green; it's fine not to pay them".

But is it?

Is unpaid work lawful?

Unpaid work will be lawful under the Fair Work Act 2009 (Cth) (Act) if:

an employment relationship does not exist between the parties, or
the arrangement involves a vocational placement.

If the unpaid work does not fall into the above categories, then you may be at risk of an underpayment claim, breach of the Act or a prosecution by the Fair Work Ombudsman (FWO). This can result in a penalty of up to $51,000 for corporations or $10,200 for individuals.

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