The Need for Internship Agreements
Internship agreements, also commonly known as internship offer letters, help both employers and interns. These documents outline the expectations between the employer and the intern, define the scope of the internship and provide a contract that can be helpful in the event of a dispute. Without an internship agreement in place, companies may be left vulnerable if a situation occurs that leads to a disagreement. Furthermore , employees claim as interns in lawsuits could sue for unpaid wages if no employment contract ever existed. Internships are commonly used by companies to define and limit an intern’s work with the organization. By defining the tasks and responsibilities of the intern, employers can effectively limit their liability for unpaid wages. These agreements are also helpful in limiting the amount of time the intern spends with the organization by clearly defining the conclusion of the internship, which can prevent claims made by employees after the internship has concluded.
Essential Provisions in an Internship Agreement Form
The fundamental purpose of an internship agreement form is to serve as a legally binding contract between the intern and the company, setting out in detail the terms and conditions of the internship. Key elements to include on any internship agreement form are as follows:
Job description
A comprehensive description of the intern’s job responsibilities should be included. This can be a general overview of their duties, along with a more detailed statement of responsibilities. Each specific duty should be listed, along with the name of the person who the intern will report directly to. Although the role the intern performs may evolve over time, a job description is essential for setting out clear expectations at the start.
Duration
The start date and end date of the internship will be clearly set out. If applicable, the specific work hours of the internship should also be included. If the internship is unpaid, a mention of the typical payment of interns in your organization could be included to reduce any confusion later. Be sure to provide a contact for both parties should they need to discuss the internship terms.
Stipend or compensation
Many internships are unpaid, but you must clearly describe whether the intern will receive a stipend for their work, and if applicable what the stipend or hourly pay rate is.
Confidentiality
Your company’s policies on confidentiality and Intellectual Property Rights (IPR) should be explicitly set out in the internship agreement. Clear parameters should be made regarding whether the intern can safely discuss their work with outsiders.
Termination
Any conditions surrounding termination of the internship, for whatever reason, must be included. Reasons for early termination include violation of workplace policies, poor performance, fraud, dishonesty, misconduct, etc. Conditions of termination related to behaviour outside work that harms the reputation of your company or is illegal should also be considered.
Acceptance of an internship agreement form is a key stage in officially bringing an intern into your business and should be handled carefully.
Legal Implications of Internship Agreements
When it comes to designing an internship agreement form, organizations will need to address legal considerations to ensure compliance with the employment laws that govern their operations and the rights of interns under labor law. Failure to do so may result in employment-related litigation or damage to the organization’s reputation and brand. Interns are not considered employees under labor law; therefore, employment law does not regulate their work in the same manner it governs employees. For instance, if interns are not compensated, they may be excluded from labor law protection and guidelines that apply to regular, paid employees—safe and healthy work environments, meal breaks, overtime pay and minimum wage protection, etc. Additionally, organizations are not required to offer interns health and safety programs, nor are they required to cover interns under compensation insurance. However, exempting interns from work regulations does not mean that employers can use interns as an inexpensive alternative to hiring or filling regular employee positions. The Department of Labor (DOL) has published guidelines to help employers determine whether interns will be legitimate business transactions for the employer, or if they will essentially be acting as employees. Depending on how interns are classified, employers may be required to pay them minimum wage and/or overtime pay. Under the Fair Labor Standards Act (FLSA), "a person who volunteers freely without promise, expectation or receipt of compensation for services rendered to a nonprofit organization" would not fall under the definition of "employee." The DOL Guidelines call for an in-depth look at the relationship between the employer and intern (asking whether the intern or employer is the primary beneficiary) and other factors (e.g., training quality, benefit to intern, disassociation from the employer’s commercial activities, etc.) to determine how the intern should be classified. According to the DOL, if there is doubt as to whether an intern should be paid or exempted under the FLSA, the employer should err on the side of caution and pay the intern. Not only can the IRS audit companies applying the internship program, but the DOL could also intervene and require that the employer pay wages, damages and expenses on behalf of the "volunteer." Internship programs cannot be an extension and recruitment tool for regular employee positions in the organization. For instance, internships avail employers to make decisions about future permanent positions based on an intern’s performance; this means the internship program should not have a predetermined duration that generally coincides with academic terms such as summer or semester breaks. An internship may become an extension of regular business service if the role is drawn out, and the intern continues to work in the same role until the position is filled, beyond the expected timeframe of the internship.
How to Personalize Internship Agreement Template
While many companies utilize template internship agreements laws, these important documents should still be tailored appropriately for each situation. Organizations can follow a series of straightforward steps to create a custom agreement. Begin by filling out the standard fields, such as the standard information regarding the name and contact information of the business and the individual intern. Be sure to also include the dates and times of the internship as well as the roles, responsibilities and duties of the individual intern. Additionally, make certain to specify in writing that the internship does not create an employment relationship. While these are the normal provisions of an internship agreement, there are also some points of specificity which should also be explicitly detailed in the final version of an internship agreement. The internship agreement should state whether the position is paid or unpaid, how old the intern is and what level of school he or she is currently attending. If he or she is currently enrolled, make certain to include the educational institution’s contact information within the internship agreement as well. Describe the specific territory in which the intern will be operating. Finally, the internship agreement should mention the supervisor of the intern, and any conditions attached to the internship agreement.
Avoiding Common Pitfalls in Internship Agreements
One of the most common mistakes that employers make is using vague or confusing language in the internship agreement form. This can lead to misunderstandings down the line and can even open the door for legal disputes if an intern feels that the terms of the agreement were not fully explained. To avoid this, be sure to use clear, concise language and define any technical terms or jargon that might be used in the agreement.
Another mistake that employers often make is failing to specify whether an intern will be compensated for their work. Not only is this required by law in many cases, but it can also help to prevent misunderstandings between employers and interns. Be sure to clearly state whether or not your internship program is paid in the agreement form.
In addition , employers should be mindful of other legal obligations when creating internship agreement forms. For example, unpaid internships must meet certain criteria under federal and state labor laws. If an employer fails to meet these criteria, they may end up violating labor laws and could face penalties.
To avoid legal issues, employers should pay careful attention to the rules and regulations that apply to their internship program and ensure that they are spelled out clearly in the agreement form. By avoiding these common mistakes, employers can create a clear and legally compliant internship agreement form that helps to set expectations for both parties.
Making Sure You’re Compliant and Staying Current
Staying compliant means you have to follow and stay up-to-date with any new law changes that may apply. Regular updates to your internship agreement form should be done once a year to ensure compliance with these changes. Consultation with legal or human resource professionals is always recommended. Another tip is to review previous internships, whether current or past. Use your current employees to try and identify problems or weaknesses in your previous internship agreements. This can include issues concerning the job duties, guidelines, process or institution methods. A full audit question survey can be implemented for advanced results. Finally, if you consistently hire interns, you may want to have an office of internships that can assist with hiring, administrating and updating internship agreements, in addition to other internship-related duties.
Final Thoughts and Ideas for Mastering the Agreement
Conclusion: Balancing both the employer and the intern’s needs is the key to a satisfactory written agreement. After reading this article, the reader has an idea of forms, structure and information which are necessary for a quality internship employment agreement form.
Final Tips:
- Use Uniform Terminology: Everyone involved in the process needs to be certain whether the agreement applies to all participants (college students and high school students) or just a specific group.
- It’s Not Always a Paid Opportunity: In some cases, internships will not pay the intern a regular wage. The employer could provide a stipend, pay transportation or lunch costs, or provide other forms of compensation, but it’s important that the employer and participant are clear about the terms of employment.
- Make it a Matching Game: Internships require a match between the company and the participant . It’s critical that it’s a good fit for both parties, so the agreement should state that each party has a chance to assess whether the internship is mutually beneficial.
- Provide Feedback: As discussed above, most companies will give interns feedback. Document the feedback provided to the participant including how his or her contributions met or surpassed expectations.
- Get Professional Help: There are many resources available for creating a written internship agreement, including Both National and State Labor Boards, University Career Services and Professional Employers such as ADP.
Internships can be beneficial to any organization, including law firms. Even the smallest firms can benefit from a great intern. Interns are often young professionals who could easily help with assignments. In turn, they get the experience they need to contribute to their professional maturity and success.