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?
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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.
From India, Mumbai
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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.
From India, Mumbai
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CTC_SALARY_SLIP _FORM_(legal)(1 ).xls