Internship Stipends for MBA Students
To my knowledge, there is no law governing student internships in managerial skills. However, the Apprentices Act deals with the appointment of apprentices in accordance with the procedure laid down therein for being trained in technical trades, and they may include graduate apprentices like engineering graduates.
Considerations for MBA Student Internships
So far as student internships for MBA students are concerned, it all depends on the nature of the internship. If it is a summer internship as part of the academic curriculum, some companies pay a stipend and some may not. If the internship is post-academic, i.e., after completion of their graduation, it is advisable to pay some stipend to attract good talent as the students are serious about learning the skills and can add value to their work.
Secondly, the company also stands a chance of retaining a bright and talented intern for a permanent role, which saves the company's recruitment costs. Thirdly, the intern will develop a favorable disposition to continue in the company. Fourthly, it motivates the interns to work hard for their skills. Fifthly, it helps the interns to fund some short-term programs on their domain-related skills. Sixthly, it helps with employer branding.
Regards, B. Saikumar HR & Labour Relations Adviser Navi Mumbai