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Employment law and HR issues

HMRC’s Big Entrance at Fashion Week

Two words one would never imagine in the same sentence are “HMRC” and “Fashion Week” but earlier this month 102 labels that featured at London Fashion Week were sent letters by the Tax Man warning them about their use of unpaid interns.

The fashion industry is prevalent with such internships, with some lasting as long as two years. If handled properly, such work placements can be a fantastic opportunity, allowing for a wealth of experience for graduates starting out in their careers, whilst contributing valuably to the companies using them.

All interns should have their food and travel expense covered as a must, but whether businesses need to pay them National Minimum Wage (NMW) is somewhat of a grey area.  If you are a company thinking of using interns, it is always advisable to have a policy in place and take advice.

There is a fine line between interns who are defined as a ‘volunteers’ and those who are defined as “workers”.  As a general rule, placements which have their interns leaning towards volunteer status are less likely to have to pay NMW than those who lean towards ‘worker’ status, but this is not clear cut! Things to consider are the length of the placement, the level of control over the intern by the company, the number of hours worked and tasks performed.

This article by company Inspiring Interns provides some helpful guidance for businesses.  You can also check out the Business Link guidance for more details.

Gelbergs Solicitors is based in Islington, London N1 and offers a comprehensive multi-disciplinary HR advice and employment law service to employers.

Call us on 020 7226 0570 and ask for Emmajane Taylor-Moran or Jane Manville. Our website can be found at www.gelbergs.co.uk and twitter at @gelbergs.