Unpaid Internships in India: Are They Fair When Startups Struggle with Budgets?

Many freshers and students are being offered unpaid internships by cash-strapped startups in exchange for experience. But this raises ethical and legal concerns. Is it ever okay to offer unpaid internships in India today? What's a fair structure when budgets are tight but intent is genuine?

Types of Internships

The internship is of two types: freshers and students.

Payment for Freshers

Freshers under internship need to be paid because they are employees but under training. Non-payment is considered illegal under the law.

Payment for Students

Students doing internships as part of their educational syllabus are not required to be paid. However, many industries and businesses pay as a goodwill gesture. If unpaid, it can't be considered illegal.

Legal Requirements for Freshers

Internships for freshers must be paid, including a stipend, and startups are not an exception.