The Fashion Business Resource Studio (FBRS) has responded to the recent statement issued by the HMRC regarding the National Minimum Wage for Interns.

The HMRC have made movements that Businesses need to be aware of if they have internships, graduate positions and short term work experiences they have responsibilities to uphold the law regarding the payment of the National Minimum Wage.

After consulting with the HMRC, there is no longer confusion over what the term intern covers. The difference between working and work shadowing has now been made clearer for businesses to follow so everyone who works for the company has legal rights.

The HMRC state that:

• Any person undertaking a short term placement (3 months or less) will still be able to do unpaid internships
• Long term placements (6-12 months) are still not legally under obligation to be paid
• An intern is classed as a volunteer and can refuse to do tasks they do not want to do and do not have to turn up on time or at all if they do not want to. The main way for businesses to employ interns is to employ them on a ‘watch and learn’ premises
• A worker is paid to do the work they are asked and to turn up on time. Therefore, if the student is going to be set tasks then they should be paid National Minimum Wage

The HMRC and FBRS both agree that the big test will come over London Fashion Week as interns will be doing long hours and will be set to manage tasks, meaning that they should rightly be paid, even if they are happy working for free. The FBRS continually offer help and advice for students / graduates who are after their first foray into the fashion world. They recognise that businesses may not be in the financial position to pay a full wage but recommend that interns and businesses work out something suitable for both parties, especially if the work period is longer.

For more information, please contact the HMRC

Words by Adriana Panas-Webb