HMRC is to crack down on unpaid internships it has recently announced. It has revealed that it is targeting 200 employers who have advertised unpaid internships recently to ensure that they are paying the minimum wage. This is part of a government initiative so that young people know their rights to pay and what they can do if they feel they are being exploited. HMRC will be sending out letters to these companies and will carry out targeted checks.
HMRC is warning to name and shame those employers who are flouting the national minimum wage legislation. They may also be liable for a £5.000 fine if they are in breach. HMRC has revealed that since April 2013 it had issued penalties to 466 employers for failing to pay the national minimum wage. Since October 2013 this is currently £6.31 for those aged 21 and over.
Employers who take on interns or individuals looking for work experience therefore need to be paid the national minimum wage at least.
The Guardian reported the contents of the letters will read “If you have got things wrong, but you put them right now, we will not charge you a penalty. If you wait, and we select you for a check and discover the problem, we may charge you a penalty of up to £5,000 and you may be publicly named and shamed by the Department of Business Innovation & Skills as an employer who isn’t paying the national minimum wage.”
The Government has announced that it is also launching a poster campaign and a video offering guidance to young would-be interns.