(Un) Paid Internships

The document discusses the debate around whether internships should be paid or unpaid. It outlines some of the key pros and cons of both paid and unpaid internships from the perspective of the interns and employers. While unpaid internships can provide valuable experience, they can also exploit young workers and prevent social mobility for those who cannot afford to work without pay. The document concludes that there are good arguments on both sides and that it is a complex issue without a clear answer, though a minimum wage for interns could help address concerns around exploitation.

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(Un) Paid Internships

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Priyanka

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(Un)Paid Internships?

Whether internships should be paid or not is a long-standing youth

debate. It is clear that the employers need labor and interns need
experience, then should internships be unpaid?

By: Priyanka Ray, a 3rd year law student pursuing BBA LLB
(Hons.) from Jindal Global Law School, Sonipat.

The answer seems quite obvious because interns working for the
advancement of a company should be compensated in some manner.
However, the question as to whether the compensation should be in the
form of money or building their CVs keeps this debate ongoing.

“In a world where getting a first is not enough anymore, what can we
do to get a foot in the door?”

Once upon a time in 2003, a group of friends had gathered in Central Perk.
Chandler Bing had excitedly announced that he got a job in advertising but
goes on to say "Actually, it pays nothing. It's an internship." This particular
"Friends" plot tells us that internships are important but are often unpaid
around the world. Multiple data study reveals that the prospect of
employment is much more for paid interns than unpaid interns like
Chandler.

Since an emotional argument is not enough to answer the question of

paying interns, issues of economic benefit, and law will. The Industrial
Employment (Standing Orders) Act, 1946 mentions apprentices but applies
only to industrial establishments employing 100 or more workers. All laws
for permanent workers are not even applicable to apprentices. Furthermore,
interns are different from apprentices. They aren't even authorized to get
minimum wages under The Minimum Wages Act, 1948. This is because
unpaid internships aren't illegal in India but are likely to continue as long as
employers consider this as an opportunity for free labor and people face
hardships in securing jobs.

Common questions like who an intern is or the work experience gained or

how long an internship should be, eventually converge on one main point.
This says that apart from being learning experiences, internships are also
work. Since part of the debate also deals with the conflicting pros and cons,
both sides of the argument should be taken into consideration before
concluding.

Pros of Unpaid Internships:

 It provides valuable experience and marketable skills in the desired field

of work apart from giving interns exposure to interacting with people in
the workplace and managing anything and everything. Such internships
can also be part-time which helps interested students who might take
these up alongside college.
 It is also a building block for long term aspirations because one gets to
work in a field that is chosen off career interests. It's understandable
when companies in various fields are more willing to give a paid job to
someone who is proficient as a team player and is also individually
persistent in previous work experiences instead of someone fresh out of
college.
 It helps in building CVs by working for reputable firms which in turn is
helpful for the interns' reputation. CVs provide a sample of their work
just like product manufacturers provide free demos.
 Even an unpaid internship is a great place to network with supervisors
and co-workers. One might even earn a recommendation letter from the
employer based on the work they do. This also helps the intern to get a
foot in the door in case one plans to work at the same place after
graduation.
 There are plenty of people who have no objections to unpaid internships,
especially one that they get in a reputed company or a place of their
choice. Even if they get banned, interns will still find a way to get it.
Instead, a transparent system of unpaid internships could be maintained
so that employers don't take advantage of the interns.

Cons of Unpaid Internships:

 The most obvious disadvantage is that one does not get paid. Since an
intern puts in a lot of time and effort, he/ she deserves a monetary
reward. It also puts additional financial strain on the ones who are not
earning anything to pay for their college fees or living costs. A paid
internship is a better option for such students. Sometimes people who
have to finance their internship might miss out on a good opportunity
because they can't afford one.
 Unpaid interns have a lower rate of receiving job offers as paid interns
are considered more serious candidates for entry-level positions.
 Interns lack the knowledge of budget-balancing that comes with earning
a paycheque.
 Sometimes interns feel isolated because they are the lowest rung on the
ladder. This gap is promoted by the lack of payment. Additionally, they
feel less engaged and consequently leads to short-term loyalty.
 Internships might provide experience but can also turn out to be grunt
work especially when it's unpaid. Some internships can end up being a
waste of time as unpaid interns perform menial jobs to free up the time of
paid employees.
 Unpaid internships showcase the hypocrisy of capitalism and are
possibly the worst reaction to job scarcity. They also prevent social
mobility.
 Labour skills are usually exploited in public or private sectors. In a
typical situation, a firm will prefer cheaper labor costs for higher
productivity. The best method to achieve this is through utilizing the
skills of youngsters which can be best achieved through unpaid
internships.
"Even those who argue against unpaid internships seem removed from
the issue."

A constant debate revolves around unpaid internships. Although an unpaid

internship can yield more benefits than one that offers a paycheque, the
pros and cons need to be considered at all times. This makes it difficult to
conclude with a sense of finality. It is always argued that the company has
the right to choose whether they offer monetary compensation for a position
and it's every job seeker's right to choose what kind of job they take.
However, this might mean that students who already lead a privileged life
will get such opportunities. If an intern's skills are just as valuable as
someone who's been hired as a paid employee, then they should be paid
accordingly. It is further argued that if companies fail to provide interns the
actual work experience that they would face in the future, they shouldn't be
expected to pay them as much as they pay their employees. Nonetheless, a
change for the better cannot be seen if the entry routes are not radically
reconstructed. This is because employers are convinced that free labor
without even a minimum wage is guaranteed. Some others view unpaid
internships as a recruiting cost. This means trying out interns unpaid to see
how they perform. Could prospective employees who have a full-time job do
it? The solution is simple- a minimum wage law should be introduced to
prevent the exploitation of interns and to protect those who belong to
disadvantageous backgrounds so that they are not excluded while applying
for such internships. Further, the remuneration can be increased after a
certain time when the productivity of the intern increases with experience.

References:

[1] Nafissah Fakun, Youth debate: Paid or Unpaid Internships? Le Defi Media Group (2017),
https://defimedia.info/youth-debate-paid-or-unpaid-internships (last visited Aug 23,
2020).

[2] Michelle Konstantinovsky, How Internships Work HowStuffWorks,

https://people.howstuffworks.com/internships.htm (last visited Aug 23, 2020).
[3] Shauna Lewis & Helen Paton, Debate: are unpaid internships a blessing or a curse? |
Palatinate Online Palatinate Online (2019), https://www.palatinate.org.uk/debate-are-
unpaid-internships-a-blessing-or-a-curse/ (last visited Aug 23, 2020).