Interns can pose a tricky conundrum. In one instance, an internship can open a door into the industry, but on the other, it is unpaid labour. Proving just why it's important to be aware of all the laws when it comes to employing interns, an Australian marketing company has just received a $17,500 fine for the misuse of interns.
The Federal Circuit Court has imposed the fine on former Melbourne marketing operator Naomi-Jayne Aldred, who previously owned and operated Nexus Coaching Group Pty Ltd. The fine came after Aldred had three interns work for free for three months after being recruited in 2012.
Despite Aldred paying the interns $10,200 in 2014 after legal proceedings had commenced, Judge Grant Riethmuller found she had taken advantage of the three graduates in an industry where employment was difficult to obtain.
Fair Work Ombudsman Natalie James approves of the sentence, saying it acts as a warning to employers looking to take on unpaid work schemes: “The Fair Work Ombudsman is committed to protecting vulnerable young workers as they enter the workforce and will take action in cases of serious non-compliance.”
Tress Cox Lawyers partner Rachel Drew tells SmartCompany the decision highlights the responsibility of employers to interns: “The court it seems wanted to send a message that first of all there should be no misconception that an intern is equivalent to work experience. If an employer is taking on an intern, they need to treat them like an employee. They can offer work experience, but that is a completely different case.”
For more information on unpaid work and internships, visit www.fairwork.gov.au/pay/unpaid-work.
