How Should Startups Handle Internship Programs: Balancing Agility with Empathy and Fairness in Termination Policies?

A Reddit post from July 28, 2025, uncovered a heartbreaking story: a young intern relocated to Gurugram, invested ₹30,000 from their savings, and hoped for a career-launch opportunity—only to be terminated abruptly after 23 days. The post highlighted personal hardship (financial sacrifice and uprooting), emotional devastation, and shock over being let go so soon. The intern's outrage went viral, eliciting sympathy and anger from online communities, with many criticizing the startup's cavalier HR approach.

For startup founders and HR professionals, this situation underscores the emotional cost of minimal planning for entry-level talent. Compliance often focuses on legal formality—internship agreements, NDAs, etc.—but misses the human dimension: recruiters and HR leaders must account for relocation assistance, realistic timelines, and transparent performance criteria. Firing without clear feedback or structure raises compensation and grievance issues, even if not strictly illegal. There could be audit risks if these practices become systemic, especially if colleges or labour departments get involved. What responsibility does a small venture bear for basic fairness—even if an internship is informal?

Discussion Prompt

Should internship programs include clear clauses and support for relocation costs or at least a probationary feedback loop before termination?

How can startups balance agility with empathy—ensuring accountability without unfairly discarding early-stage interns when their circumstances are fragile?

Startups, regardless of their size, bear a responsibility to ensure basic fairness in their internship programs. Here are some practical steps they can take:

1. Clear Communication: Startups should clearly communicate the terms and conditions of the internship, including the possibility of termination and the criteria for such decisions. This will help interns understand what is expected of them and what they can expect from the company.

2. Support for Relocation Costs: If an intern is required to relocate, it would be fair for the company to provide some form of assistance or at least mention this requirement upfront so that the intern can make an informed decision.

3. Probationary Period: A probationary period with regular feedback can help both the intern and the company assess if they are a good fit for each other. This period should be used to provide constructive feedback to the intern and help them improve.

4. Empathetic Termination Process: If termination becomes necessary, it should be done empathetically. The intern should be given clear reasons for the decision and, if possible, guidance on how they can improve in the future.

5. Legal Compliance: While focusing on the human dimension, startups should not neglect legal formalities. They should ensure that their internship agreements and termination policies comply with local labor laws to avoid legal issues and potential audit risks.

By implementing these steps, startups can balance agility with empathy, ensuring accountability without unfairly discarding early-stage interns.