The Guardian has reported today that HMRC is planning to raid fashion companies that fail to pay interns the National Minimum Wage (NMW). HMRC has apparently convened a 12-person taskforce to make
The Guardian has reported today that HMRC is planning to raid fashion companies that fail to pay interns the National Minimum Wage (NMW). HMRC has apparently convened a 12-person taskforce to make random spot checks on businesses that use interns.
Although this crackdown appears to be aimed at the fashion industry, it would be surprising if the HMRC stopped there. In the current economic climate, unpaid internships are on the rise and have attracted significant publicity. The graduate advice site Graduate Fog launched a "Pay your Interns" campaign earlier this year, intended to "name and shame" companies that fail to pay interns the NMW.
There is considerable confusion about interns and what they are, and are not, entitled to receive. The Government published guidance earlier this year, in an attempt to clarify when interns should receive the NMW. However, it is an area which employers need to approach with care and my recent article in People Management outlines some of the key issues for employers to consider.
The Guardian reports that this is the first time that intern abuse has been targeted by the HMRC. Although all eyes may well be on the fashion industry, this is a timely reminder for all employers to review their own internship arrangements.
Although this crackdown appears to be aimed at the fashion industry, it would be surprising if the HMRC stopped there. In the current economic climate, unpaid internships are on the rise and have attracted significant publicity. The graduate advice site Graduate Fog launched a "Pay your Interns" campaign earlier this year, intended to "name and shame" companies that fail to pay interns the NMW.
There is considerable confusion about interns and what they are, and are not, entitled to receive. The Government published guidance earlier this year, in an attempt to clarify when interns should receive the NMW. However, it is an area which employers need to approach with care and my recent article in People Management outlines some of the key issues for employers to consider.
The Guardian reports that this is the first time that intern abuse has been targeted by the HMRC. Although all eyes may well be on the fashion industry, this is a timely reminder for all employers to review their own internship arrangements.