Can My E-Commerce Business Offer Internships?

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Table of Contents

• Difference Between Unpaid and Paid Interns
• Role of Interns
• Pros and Cons of Offering an Internship Program
• Alternatives to Offering an Internship
• Key Takeaways 

Running an e-commerce business involves various elements, from business operations to general sales. If your business needs extra support but does not have the budget for a permanent employee, you can consider hiring an intern. An intern can offer value to your business, including new knowledge or the potential to become a more frequent employee. However, ensure your business is aware of its obligations to your interns. This article will outline an intern’s rights and how you can comply with them when offering internships. 

Difference Between Unpaid and Paid Interns

Unpaid interns will generally not be employees within your e-commerce business. Since you do not pay these workers, you should ensure their tasks differ from those of regular employees. Likewise, you cannot expect unpaid interns to provide an economic advantage to your business. Rather, focus on providing your unpaid intern with opportunities for skill development and new experiences. 

Alternatively, you can hire a paid intern who will be classified as an employee. Paid interns should have a written agreement that clarifies their rights and responsibilities. Note that you must pay your intern at least the minimum wage. The agreement can include:

• roles and responsibilities;
• wages or salary;
• place of work;
• duration of the internship;
• leave entitlements;
• working hours;
• termination; and
• dispute resolution.

Your interns will also have other rights, such as a safe and healthy working environment and being free from discrimination or harassment. 

Role of Interns

Before hiring an intern, ensure you have sufficient work for them to do. Additionally, inform your employees of the internship and clarify whether they will need to train them. Ensure to detail and organise key roles and responsibilities in advance to avoid confusion. It also aids your potential intern in making an informed decision. 

Pros and Cons of Offering an Internship Program

Key advantages of hiring interns include the availability of fresh ideas for your business. Interns often have a new perspective on operations and can help improve your current e-commerce processes. Further, they can free up some of your time and contribute their diverse experiences. Additionally, some interns may return for a full-time job later, which can be a great asset to your online business. 

However, some cons include the necessary time required to find and train interns. Some business factors may be unknown to your intern, and training them effectively can take time and effort. Additionally, your business must comply with their health and safety rights by offering a safe workplace and equipment. Further, an internship typically lasts between 6 weeks to 12 months, meaning your business may lose a key asset if your intern decides to leave. 

Alternatives to Offering an Internship

In some cases, internships may not be the correct move for your business. Alternatively, you may decide to hire a contractor for a specific period of time. Note that a contractor will not legally work for you but instead for themselves. They often decide when and how they complete a job and are responsible for getting a job done within your specified time frame. 

Contractors are also free to work for other people and are usually not covered by employment laws. As such, they do not acquire entitlements to leave and personal grievances. Additionally, they must pay their own tax. 

Further, consider what your contractor is willing to do and whether they will fill your business gaps. Ensure to draft a written agreement to clarify legal standings. Your agreement can outline:

• limitation of your liability;
• job description;
• place of work;
• specified time frame for the job;
• intellectual property rights;
• indemnification;
• confidentiality; and
• dispute resolution.

You can also consider hiring a casual employee who can complete a small variety of tasks for you. This can be a cost-effective solution for your business while also distributing the workload. Note that a casual employee will be considered an employee of your business. Therefore, all employment laws will apply to them. Ensure to draft an employment agreement tailored to the arrangement. 

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Key Takeaways 

Your online business can consider offering internships to complete certain tasks while also developing new entrants into the job market. Note that unpaid interns are not considered employees, while paid interns are likely to be. Ensure you draft an employment agreement for your paid interns and comply with all other relevant laws. You can also consider hiring a contractor or a casual employee to meet your business needs. 

For more information about your legal obligations surrounding internships, our experienced employment lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0800 005 570 or visit our membership page.