In recent days, when I was in casual discussion with a couple of my friends, they were claiming that they are engaging interns who have completed their academics to perform their duties along with other employees. They have been paid a stipend and were working for periods varying from 6 months to 1 year, which I could see very commonly in various industries engaging interns such as IT, Service Sectors, Manufacturing, etc. Such interns are being engaged by small, medium, and large organizations without knowing the impact on compliances.
Many organizations engage interns or trainees for short-term projects to avoid paying minimum wages, social security benefits, and some companies engage interns or trainees for around a year, after which they are onboarded onto the company roles.
Following are some of the points to be considered when engaging interns:
Who are Interns? Indian labor or employment law doesn't define the term "Interns." The real meaning of interns pertains to students who are part of academics, whether technical or non-technical. As part of their curriculum, they will be engaged in any organization to gain exposure to job skills, depending on the course they are studying. This does not apply to individuals who have completed their course.
Can companies engage interns in organizations? Yes, companies can engage interns as mentioned above. Such interns should be engaged according to the terms specified in their curriculum only.
Is a stipend mandatory for interns? As students are gaining skills from their program, it is not necessary to pay a stipend. However, it is advisable to provide a reasonable stipend and have a detailed policy in place.
What are the checkpoints to ensure while engaging interns?
- Check if the person approaching for an internship is studying in any authorized institution.
- Mandatorily obtain a signed internship request letter from an authorized person at the institute, specifying the duration and purpose.
- Collect the resume along with copies of address proof, ID proof, and educational certificates.
- Provide necessary On-the-Job Training where possible and document the same.
- Upon completion of the internship, provide a certificate and keep a copy for documentation.
The legal/compliance considerations for engaging internships should be taken into account. Interns are not recognized under Indian labor laws, which may pose misclassification risks. Depending on the nature of arrangements, interns may be considered employees/workers under respective acts, leading to potential triggers of labor law benefits, social security benefits, compliances, and protections if correct practices are not followed.
EPF department issued two circulars related to student-trainees, emphasizing compliance with guidelines to avoid non-compliances, affecting employee and employer relationships, and necessitating adherence to minimum wages, social security benefits, etc. Organizations looking to engage interns are advised to consider the training scheme under the Apprentice Act if not engaging academic students. Compliance with applicable labor laws is crucial to mitigate risks.
From India, Bangalore
Acknowledge(0)
Amend(0)
653Many organizations engage interns or trainees for short-term projects to avoid paying minimum wages, social security benefits, and some companies engage interns or trainees for around a year, after which they are onboarded onto the company roles.
Following are some of the points to be considered when engaging interns:
Who are Interns? Indian labor or employment law doesn't define the term "Interns." The real meaning of interns pertains to students who are part of academics, whether technical or non-technical. As part of their curriculum, they will be engaged in any organization to gain exposure to job skills, depending on the course they are studying. This does not apply to individuals who have completed their course.
Can companies engage interns in organizations? Yes, companies can engage interns as mentioned above. Such interns should be engaged according to the terms specified in their curriculum only.
Is a stipend mandatory for interns? As students are gaining skills from their program, it is not necessary to pay a stipend. However, it is advisable to provide a reasonable stipend and have a detailed policy in place.
What are the checkpoints to ensure while engaging interns?
- Check if the person approaching for an internship is studying in any authorized institution.
- Mandatorily obtain a signed internship request letter from an authorized person at the institute, specifying the duration and purpose.
- Collect the resume along with copies of address proof, ID proof, and educational certificates.
- Provide necessary On-the-Job Training where possible and document the same.
- Upon completion of the internship, provide a certificate and keep a copy for documentation.
The legal/compliance considerations for engaging internships should be taken into account. Interns are not recognized under Indian labor laws, which may pose misclassification risks. Depending on the nature of arrangements, interns may be considered employees/workers under respective acts, leading to potential triggers of labor law benefits, social security benefits, compliances, and protections if correct practices are not followed.
EPF department issued two circulars related to student-trainees, emphasizing compliance with guidelines to avoid non-compliances, affecting employee and employer relationships, and necessitating adherence to minimum wages, social security benefits, etc. Organizations looking to engage interns are advised to consider the training scheme under the Apprentice Act if not engaging academic students. Compliance with applicable labor laws is crucial to mitigate risks.
From India, Bangalore
Acknowledge(0)Amend(0)Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Legal Compliance Plan.xls