Unpaid internships are only lawful if the intern is a genuine volunteer, a student doing work experience as part of their course, or a work shadower. In all other cases, the National Minimum Wage must be paid. HMRC actively investigates unpaid internships.

• NMW applies to "workers" — most interns qualify after a brief period
• Volunteer exceptions: genuine volunteers at charities; students on accredited placements
• An internship agreement can help establish the nature of the relationship
• IP created by an intern belongs to the employer if they are a worker/employee
• References: agree whether employer will provide a reference on completion

Legal reference: National Minimum Wage Act 1998; Employment Rights Act 1996; Equality Act 2010