Lecturer’s attack on firms who refuse to pay interns

A LEEDS Business School lecturer has criticised companies that use interns as a source of cheap labour, describing it as “deeply disturbing”.

Mr Robert Minton-Taylor criticised “the invidious practice of not paying interns” ahead of The Chartered Institute of Marketing’s 2013 Annual Marketing Debate.

This will take place in Manchester on April 18 and will look at employment prospects for young people.

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Mr Minton-Taylor said that companies which refuse to pay interns need to “get real”.

A former director of advertising and public relations agency Burson-Marsteller, he said: “All I am asking is that firms pay the going rate for the job. Is that too much to ask in a country like Britain renowned for its fair play? Not paying a wage is tantamount to slave labour.”

In response a CBI spokesman said: “The law is clear over which interns qualify for the minimum wage and what employers’ statutory duties are – no ifs or buts.

“The current law strikes the right balance between formal internship programmes and less formal work experience.

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“We would be concerned about any additional regulation of internships, however, which risks cutting the number of opportunities available to young people.”

Mr Minton-Taylor warned that organisations could fall foul of the law if they do not pay interns.

“Under the Working Time Regulations, Government guidance has suggested that if an intern is expected to work set hours, carry out set duties and is actively contributing to the organisation, there is a risk that an employment tribunal could find the individual is a ‘worker’ and thus entitled to the national minimum wage,” he said.

“We are living in the worst recession since World War II. University fees are at an all-time high and students are paying more for their accommodation and living expenses,” he added.

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“My 45 years in industry has shown that there is simply no excuse for not paying students in employment a wage.

“I am sick and tired of hearing excuses given by employers about why students should not be paid. Sure students learn on the job – but so do we all. Interns add real value to businesses and are capable of producing award-winning work so they should be treated fairly and rewarded accordingly,” he said.

He claimed that by not paying a wage, firms are depriving young people, especially from black and ethnic minority communities and low income families, the opportunity to learn business skills and play a part in regenerating the economy because they cannot afford to take on unpaid jobs.

He said that Leeds Business School has made a stand on the issue.

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“We will not publicise year-out internships to undergraduates or graduates that do not pay the minimum wage.

“Genuine unpaid internships with a proper and established learning contract in place should last no more than two to four weeks and the employer should be prepared to pay the student’s travel and subsistence expen- ses.

“Over and above four weeks interns should be paid the minimum wage.”

The Working Time Regulations of 1998 implemented the European Working Time Directive into British law.

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The definition of a worker includes anyone who works under a contract to personally perform work or services, which is a relatively easy test to satisfy.

Students have to pay around £9,000 a year for tuition fees.

The Chartered Institute of Marketing said they are working harder than ever to secure work experience and intern opportunities.

It added that during these unpaid placements they undertake a wide range of work, including work that can be billed to clients.

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It said its ‘Question Time’ style debate on April 18 will ask what is ethical when it comes to taking on interns.

It will also look at the skills employers really need, what education is doing to support this and what students can do to further their careers.

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