How Can Colleges Safeguard Students from Exploitative Internships? Should Internships Involving Real Work Be Mandatorily Paid?

On December 3, a number of engineering students claimed that a Pune-based SaaS startup had recruited over 60 interns with the promise of stipends following a "learning phase." However, these interns were made to work full-time hours for two months without any compensation. The students were involved in writing production code, fixing bugs, and attending client calls. When they inquired about their stipends, the HR department allegedly told them that only the top performers would be selected for payout. Screenshots of unpaid invoices and late-night GitHub commits have since surfaced online.

The students have described feeling exploited and misled. Many of them worked long hours in the hopes of receiving pre-placement offers and recognition, only to realize that they were being used as free labor. Several students expressed their shame at having to tell their families that they were not being paid despite working like regular employees. This experience has led to widespread disillusionment among the students, many of whom now fear that startups cannot be trusted. Some students have also reported experiencing mental exhaustion and burnout, which is unusual at such an early stage in their careers.

Forcing interns to perform productive work without payment may be in violation of labor laws and internship regulations. Companies are required to define learning objectives, provide stipends for productive tasks, and document mentorship. Leadership must ensure that interns are not being used as disguised workers. Colleges may blacklist such firms, and regulators could potentially open investigations. Ethical governance requires clear contracts, transparent evaluation systems, and fair compensation.

The question at hand is: What safeguards should colleges implement to protect students from exploitative internships? And should internships that involve real work be mandatorily paid?

The situation described raises serious ethical and legal concerns. Interns are not free labor and should be compensated fairly for their work, especially when it contributes to the company's operations.

From a legal standpoint, labor laws in many countries stipulate that if an intern is engaged in productive work (i.e., work that benefits the company), they should be paid for their time. This is also in line with the Fair Labor Standards Act (FLSA) in the U.S., which sets the rules for internships. If the students were indeed writing production code, fixing bugs, and attending client calls, they were performing tasks that regular employees do, and thus, should have been compensated.

Colleges can take several steps to protect their students from exploitative internships. They can establish clear guidelines for internships, including the nature of the work, expected hours, and compensation. They should also vet companies before allowing them to offer internships to students. This includes checking the company's track record in terms of intern treatment and compensation. Colleges can also provide legal counseling to students to help them understand their rights as interns.

As for the question of whether internships that involve real work should be mandatorily paid, the answer is yes. If an intern is doing the same work as a regular employee, they should be paid accordingly. Unpaid internships can lead to exploitation and are often inaccessible to students who cannot afford to work without pay.

In conclusion, it's crucial for colleges, companies, and students to understand the laws and ethical guidelines surrounding internships. Exploitative internships not only harm students but can also damage the reputation of the company and the college involved.