UK Contract Type Guide · 2026
Do UK interns have to be paid?
Definition
An internship is a temporary work experience, typically aimed at students or recent graduates, providing exposure to a profession or organisation. Legal status: depends on whether the intern is performing 'work' (must be paid NMW) or genuinely just observing/learning (may not need pay).
Rights and protections
If classed as a worker: NMW (£12.21/hour for 21+, £10.00 for under 21, £7.55 for 16-17 — April 2025 rates), holiday pay accrual, rest breaks, written terms (since April 2020), discrimination protection, statutory sick pay if eligible. If genuinely a volunteer or student placement (HE): expense-only reimbursement may be permitted but no NMW.
Employer obligations
Determine legal status correctly (employer's responsibility, not the intern's); pay NMW if work is being performed; maintain records to support the determination; provide written terms if worker status; not exploit 'internship' label to avoid NMW; HMRC enforcement is active and aggressive on internship NMW breaches.
Tax and pay implications
PAID internship: PAYE applies normally; full income tax + NI if above thresholds. UNPAID 'internship' (genuine work): unlawful in most cases; HMRC can demand backdated NMW + employer NI + penalties. Student placement (HE up to 1 year): may be unpaid lawfully if part of education programme. Volunteering (charity): expenses only.
Common use cases
Summer internships (typically must be paid); industrial placements (HE undergraduates — may be exempt if part of degree); insight days (1-3 days, work shadowing — typically lawful unpaid); first job through structured internship programmes (must be paid).
Worked example
Olivia accepted a 6-week 'unpaid internship' at a London PR firm, told to attend 9-5 with set tasks (writing copy, attending client meetings, drafting reports). She raised an HMRC NMW complaint (anonymous initially). HMRC investigated; ruled she was a worker performing genuine work. Backdated pay: 6 weeks × 37.5 hours × £12.21 = £2,747 owed PLUS employer NI penalty. Company added to public NMW non-compliance list. Olivia kept her career relationships intact; the company quietly settled and changed its policy.
Recruiter pro tip
If you're being asked to do real work — assigned tasks, set hours, attendance expected — and you're not at a registered charity or on a HE placement, you should be paid NMW. The HMRC NMW enforcement route is free, anonymous (initially), and powerful. Many interns are afraid to complain because of career relationships — but HMRC handles complaints discreetly and has resolved tens of thousands of unpaid-internship cases. If you've already done unpaid 'internship' work, you can still claim backdated NMW for up to 6 years (NMW limitation) — even after the placement ended.
Related contract types
How do UK apprentice contracts work?
UK apprentices have an Apprenticeship Agreement (different from a Contract of Apprenticeship in older law). Th…
What rights do UK casual workers have?
UK casual workers (work irregular hours with no obligation on either side) typically have 'worker' status, giv…
How do UK zero hours contracts work in 2026?
A zero hours contract is a UK employment arrangement where the employer doesn't guarantee any minimum hours, a…
Related across UK Rights & Guides