Your idea has transformed into a business that is growing every day. You are at the stage where you are looking to engage help running your company. Perhaps you have considered taking on an intern.
WHAT DOES IT COVER?
Many businesses, especially startups, choose to engage interns. An internship is an arrangement which is usually advantageous for both parties. An individual elects to take on unpaid or paid work to gain industry experience and improve their skills. Usually the internship will be for a set period of time and with minimal performance obligations and requirements for the intern. Depending on the company, an internship can be a paid or unpaid position.
Whilst an internship normally benefits both parties, it is important that the arrangement stays within the confines of employment law provisions and a “sham arrangement” is not entered into. If a company engages an intern in a paid capacity and the intern is adding substantial financial value to the business (such as being in a sales position), then this will not be deemed as a legal intern arrangement.
WHY IS THIS IMPORTANT?
Having a properly drafted Internship Agreement provides security against future disputes and ensures that the position won’t be characterized as an ongoing employment relationship. It will also clearly set out the parameters of the intern’s role and future opportunity within the business.