Creating an Unpaid Internship Agreement

Founding their company in 2017, the Genie AI team quickly became ‘the world’s largest open source legal template library’, offering millions of datapoints to teach its AI what a market-standard unpaid internship agreement looks like. With this library, anybody can customise, draft and share high-quality legal documents without paying a lawyer.

Setting up an unpaid internship agreement is essential for gaining access to talented individuals while providing them with valuable experience in the relevant field. For employers, however, there are certain legal considerations that must be taken into account. To ensure all parties are legally safe and understand their expectations and duties, this guide will detail what should be included in an unpaid internship agreement.

First and foremost is to make it clear that the intern is not considered an employee; failure to do so can result in severe costs for employers. Minimum wages or any other benefits due are not applicable but expenses or reimbursements for work-related costs can be offered by the employer - it is vital to maintain a distinct difference between employee and intern within the agreement itself.

The agreement should also clearly stipulate the level of commitment required from both parties; how long will the internship last? What performance metrics are expected of them? Are there any specific rules they must adhere to (dress code etc)? All these details must be established ahead of time, so no one is left confused about their role within the company or what they’ll receive for their efforts.

Alongside this should come provisions outlining how exactly interns will be compensated; whether it’s reimbursement for certain materials or travel expenses or simply a flat stipend rate - whatever works best for both involved parties needs to be put on paper before anything else happens. It also needs stating that interns cannot legally receive minimum wage as this constitutes salary pay - termination clauses should then follow suit so either party may end things at anytime provided certain conditions have been met by each individual involved.

On top of all that comes liability issues - if something were to happen whilst working (injury, damage etc.) who would bear responsibility? This clause specifies who holds liability under such circumstances as well as specifying that neither party shall hold each other responsible against any actions taken by either during their period together - setting some boundaries here avoids possible confusion further down the line!

Finally (and probably most importantly), rules and expectations placed upon interns need addressing too - behavioural issues play a big part here so set out some ground rules early on just incase you encounter problems later down your professional relationship journey! In addition, state particular hours they’d be allowed/expected to work too if necessary!

Writing up an unpaid internship agreement correctly serves many purposes but most essentially helps protect anyone signing from future potential legal issues later on down life’s pot hole ridden road whilst providing clarity throughout both parties’ commitments with one another too! By doing so businesses can utilise free talent pools around them safely whilst protecting themselves from possible pitfalls along the way – Genie AI offers free templates designed specifically for this purpose alongside step-by-step guidance which you can read further below – check out our template library today & get ready for success tomorrow!

Definitions

Length of the Internship: The amount of time an intern will be working for an employer.
Role and Expected Duties: The list of tasks and responsibilities the intern is expected to complete.
Supervision and Guidance: The support, advice, and direction the employer provides to the intern.
Qualifications: The skills, knowledge, and experience the intern must have to be accepted for the internship.
Selection Process: The process used to decide who will receive the internship.
Learning Objectives: The goals or outcomes the intern is expected to achieve from the internship.
Support: The resources and materials the employer will provide to the intern.
Rights and Responsibilities: The obligations and expectations of both the employer and the intern.
Terms of Agreement: The rules and regulations of the internship.
Dispute Resolution: The procedure for how conflicts between the employer and intern will be resolved.
Training and Evaluation Procedures: The process used to monitor and assess the intern’s performance.
Internship Schedule: The days and times the intern is expected to be present.

Contents

1. Clarifying the Nature of the Internship
2. Defining the length of the internship
3. Outlining the intern’s role and expected duties
4. Specifying the level of supervision and guidance provided by the employer
5. Establishing the Prerequisites for Participation
6. Outlining criteria for qualifications
7. Describing the process for selecting interns
8. Establishing Learning Objectives
9. Describing the learning objectives for the internship
10. Outlining the outcomes that the intern should be able to achieve by the end of the program
11. Working Out Financial and Other Support
12. Negotiating the support that the employer will provide to the intern, such as any travel expenses, materials, and resources
13. Defining the Rights and Responsibilities of the Employer and Intern
14. Outlining the rights and responsibilities of both parties
15. Specifying the intern’s obligations to the employer
16. Describing the employer’s duties to the intern
17. Outlining the Terms of the Agreement
18. Defining the terms of the agreement
19. Specifying any applicable restrictions, such as non-disclosure agreements
20. Describing any applicable termination provisions
21. Setting Out the Process for Dispute Resolution
22. Describing the process for resolving any disputes between the employer and the intern
23. Establishing Training and Evaluation Procedures
24. Defining the training and evaluation procedures for the internship
25. Describing the process for evaluating the intern’s progress
26. Outlining the Internship Schedule
27. Clarifying the intern’s working hours
28. Specifying the days and times the intern is expected to be present
29. Drafting an Internship Agreement
30. Preparing a written agreement that documents all aspects of the agreement
31. Ensuring that both parties sign the agreement

Get started

Clarifying the Nature of the Internship

• Research the laws and regulations surrounding unpaid internships in your state
• Speak with a lawyer if you need more clarification on your state’s laws
• Consider how the internship will benefit the intern
• Identify the skills and knowledge the intern will gain
• Determine if the intern will receive school credit and if there is a requirement to receive it
• Check if the intern will be paid for travel or other associated costs
• Consider providing a stipend for the intern

When you can check this off your list:

• When you have completed research on the laws and regulations surrounding unpaid internships in your state
• When you have spoken with a lawyer if necessary
• When you have determined the skills and knowledge the intern will gain
• When you have determined if there is a requirement for the intern to receive school credit
• When you have checked if the intern will be paid for travel or other associated costs
• When you have considered providing a stipend for the intern

Defining the length of the internship

• Decide on the length of the internship. Set a specific start date, end date, and plan for how long the internship will last.
• Make sure that the start and end dates are clearly stated in the written agreement.
• Determine how many hours per week the intern will work.
• Agree on whether the internship is full-time or part-time.
• When the agreement is complete, you can check this step off your list.

Outlining the intern’s role and expected duties

• Make a list of tasks and responsibilities the intern will be expected to complete
• Make sure to include both general duties as well as specific tasks that the intern will be responsible for
• Clearly communicate what is expected of the intern in terms of hours, days, and any other details that may be relevant
• Outline any goals or objectives the intern should strive to achieve over the course of the internship
• Outline any additional activities or tasks the intern may be asked to complete
• Get the intern’s agreement and signature on the internship agreement

Once the intern’s role and expected duties have been outlined and agreed upon, you can check this off your list and move on to the next step.

Specifying the level of supervision and guidance provided by the employer

• Clarify what the employer’s level of supervision and guidance will be and how it will be communicated (e.g., verbal instruction and feedback, written instruction and feedback, etc.)
• Describe any additional mentorship or guidance that the employer may provide
• Note whether the intern will receive feedback or evaluations throughout their internship
• Specify any additional resources or support the intern may have access to

Once you have clarified the level of supervision and guidance the employer will provide, you can check this off your list and move on to the next step of establishing the prerequisites for participation.

Establishing the Prerequisites for Participation

• Research and determine the legal requirements for unpaid internships in your state or region
• Consult with a qualified legal professional to understand any other state-specific regulations
• Make sure the internship is unpaid (no cash compensation, benefits, or wages)
• Make sure the intern is classified as a volunteer and not an employee
• Determine the duration of the internship and when it will start and end
• When these steps have been completed, you can move on to the next step – outlining criteria for qualifications.

Outlining criteria for qualifications

• Identify the qualifications needed for the internship, such as educational background and/or experience
• Create a list of criteria that will be used to evaluate potential interns
• Specify any requirements needed, such as language proficiency
• Consider any necessary skills or abilities that would be helpful
• When the criteria is complete, you can move on to the next step of describing the process for selecting interns.

Describing the process for selecting interns

• Establish a timeline for when applications will be accepted and when decisions will be made
• Develop a plan for how you will review applications and make decisions
• List the criteria you will use for selecting interns (e.g., skills, experience, availability)
• Reach out to your network or post online to promote the internship
• Set up an interview process for those candidates who make it to the next round
• Make decisions and contact successful candidates

When you can check this off your list and move on to the next step:
When you have received applications, reviewed them, and selected interns.

Establishing Learning Objectives

• Set clear learning objectives for the internship, including both short-term and long-term goals
• Determine how the intern will be evaluated, and how performance will be measured
• Create a timeline of milestones and objectives that the intern needs to meet
• Make sure the learning objectives are measurable and realistic
• When all learning objectives have been established, check off this step and move onto the next one.

Describing the learning objectives for the internship

• Create a list of specific skills and knowledge that the intern should gain from the experience
• Define how the intern will demonstrate the successful completion of the learning objectives
• Outline how the intern’s performance will be evaluated
• Decide if the intern will receive any certifications or credits for the internship
• Determine if the intern will be required to take tests or quizzes throughout the program
• Establish any other methods of evaluation, such as presentations or reports
• Make sure that the learning objectives are realistic and achievable

Once you have created the list of learning objectives and outlined how they will be evaluated, you can check this step off your list and move on to the next step.

Outlining the outcomes that the intern should be able to achieve by the end of the program

• List out the specific tasks, skills, and knowledge that the intern should have accomplished at the end of the program
• Identify any certifications or credentials that may be earned through the internship
• Outline the deliverables the intern should complete and submit at the end of the program
• Describe how the program will be evaluated
• When all of the above objectives are outlined, you can check this step off your list and move on to the next step.

Working Out Financial and Other Support

• Outline the financial and other support that the employer will provide to the intern throughout the duration of the program
• Consider whether the internship should be paid or unpaid and determine any compensation that should be provided
• Discuss what expenses the employer will cover, such as travel, materials, and resources
• Determine if the employer will provide any other benefits, such as meals or housing
• Negotiate a final agreement and have both parties sign the document

How you’ll know when you can check this off your list and move on to the next step:
Once the financial and other support have been determined and agreed upon, both parties should sign the document to finalize the agreement. Once the agreement has been signed, you can check this step off your list and move on to the next step.

Negotiating the support that the employer will provide to the intern, such as any travel expenses, materials, and resources

• Discuss the details of any travel expenses and provide a written agreement outlining the specifics of reimbursements
• Negotiate the resources the employer will provide to the intern, such as access to a computer, internet, and office supplies
• Agree on any additional support the employer will provide, such as meals or other benefits
• Ensure that all agreed upon support is written into the unpaid internship agreement
• Once all the required support has been negotiated and written into the agreement, you can move on to the next step of the guide.

Defining the Rights and Responsibilities of the Employer and Intern

• List out the rights and responsibilities of the employer and intern in the agreement
• Make sure to include the length of the internship, minimum hours worked, and expectations of the intern
• Spell out the exact roles and expectations of both parties
• Clearly define the expectations of the employer in terms of providing support to the intern, such as any travel expenses, materials, and resources
• Make sure to include a termination clause in case either party decides to end the agreement early
• Once the rights and responsibilities of both parties have been outlined in the agreement, you can move on to the next step.

Outlining the rights and responsibilities of both parties

• Brainstorm a list of the rights and responsibilities of the employer and intern.
• Make sure to include details about the intern’s hours, job duties, and expectations.
• Draft a written agreement outlining the rights and responsibilities of each party.
• Consider having the agreement reviewed by an attorney or other legal professional.
• Have both parties sign and date the agreement.

You’ll know you can check this off your list and move on to the next step when you have a written agreement that outlines the rights and responsibilities of each party that has been signed and dated by both parties.

Specifying the intern’s obligations to the employer

• Make sure to specify the intern’s obligations to the employer, including any tasks or responsibilities the intern will be expected to complete.
• Include a clause that makes it clear that the intern is not entitled to any wages.
• Make sure to make the intern aware of any policies that are relevant to their role such as confidentiality, health and safety, and anti-discrimination.
• Make sure to clarify any guidelines the intern must adhere to such as dress code, hours of work, and any specific instructions related to the intern’s role.
• When you are done, make sure to review the agreement and check that all of these obligations have been specified.
• Once you have reviewed the agreement, you can move on to the next step of describing the employer’s duties to the intern.

Describing the employer’s duties to the intern

• Describe the roles and responsibilities of the employer in the internship program, including any specific tasks or projects the intern will be expected to complete
• Ensure the intern is provided with appropriate training and orientation to the employer’s organization and its procedures
• Explain any travel, reimbursement, or other related expenses that the employer will be responsible for
• Mention any additional benefits the employer will provide to the intern, such as free lunch, access to certain facilities, or discounts
• Outline any safety or security measures the employer will take to ensure the intern’s safety
• Identify any reporting or other obligations the employer will have to the intern
• Describe any legal or regulatory requirements the employer must adhere to in the context of the internship

Once you have written and included all the applicable duties of the employer in the agreement, you can check this step off your list and move on to the next step: Outlining the Terms of the Agreement.

Outlining the Terms of the Agreement

• Make sure the agreement includes the name of the intern and the employer, the start and end dates of the internship, and the job duties to be performed
• Agree on the intern’s hours, days of work, and other aspects of the internship, such as whether lunch will be provided
• Specify how much the internship will pay (if any) and the form of payment
• Outline any other benefits the intern will receive, such as free meals, transportation, or access to an employer’s gym
• Include a confidentiality clause that prevents the intern from disclosing any confidential information they may become aware of during the course of the internship
• Describe any other applicable terms, such as the intern’s right to terminate the internship
• Make sure both the employer and the intern sign and date the agreement.

You’ll know you can check this off your list and move on to the next step when you have an agreement with all the above points included and signed by both parties.

Defining the terms of the agreement

• Outline the duties of the intern
• Identify the duration of the internship
• Determine a schedule for the intern’s work hours
• Specify any academic or other requirements for the intern
• Establish any compensation terms
• Discuss any other terms that should be included in the agreement
• Draft the agreement and have both parties sign it
• Keep a copy of the agreement for both the employer and intern

How you’ll know when you can check this off your list and move on to the next step: Once both parties have agreed to and signed the agreement, you can move on to the next step.

Specifying any applicable restrictions, such as non-disclosure agreements

• Determine any restrictions that need to be included in the agreement, such as non-disclosure agreements
• Include the specific restrictions in the agreement
• Make sure that both the intern and the business understand and agree to the restrictions
• Have both parties sign the agreement to show that they agree to the restrictions
• Keep a copy of the agreement and the signed documents on file
• Check off this step to move on to the next step: Describing any applicable termination provisions

Describing any applicable termination provisions

• Identify and define the circumstances under which either party may terminate the agreement
• Describe the process for formal notification of termination
• Specify any applicable waiting periods before the termination is effective
• Outline the responsibilities of each party in the event of termination
• Include any applicable severance provisions
• When complete, review the termination provisions for accuracy and completeness
• Once the termination provisions are finalized and reviewed, the step is complete and you may move on to the next step, which is Setting Out the Process for Dispute Resolution.

Setting Out the Process for Dispute Resolution

• Outline the process for resolving any disputes between the employer and the intern through negotiation, mediation, or other means.
• Identify a neutral third party that can facilitate the dispute resolution process and provide information to the employer and intern.
• Specify what happens if the dispute cannot be resolved through negotiation or mediation.
• Include a clause that states the employer and intern will not be allowed to bring legal action against each other until the dispute resolution process is completed.
• Once all of the above has been included, you can check this off your list and move on to the next step.

Describing the process for resolving any disputes between the employer and the intern

• Determine what type of dispute resolution process will be used (e.g. arbitration, mediation, or litigation)
• Specify the applicable laws and regulations that the dispute resolution process will follow
• Establish procedures for resolving any disputes that may arise between the employer and the intern
• Include language that requires both parties to use good faith efforts to resolve any disputes themselves
• Set out the time frame for resolving any disputes
• Specify an appeal process if the initial dispute resolution does not resolve the dispute
• Document the dispute resolution process in the unpaid internship agreement
• Once the dispute resolution process is documented, check it off the list and move on to establishing training and evaluation procedures.

Establishing Training and Evaluation Procedures

• Establish a timeline for the intern to complete the training program
• Define the objectives and expectations of the training program
• Determine the evaluation criteria and methods for the internship
• Outline any certifications or qualifications that are required for the intern to successfully complete the internship
• Decide who will be responsible for providing feedback and guidance to the intern during the internship

Once these steps are completed, you can move on to the next step, which is defining the training and evaluation procedures for the internship.

Defining the training and evaluation procedures for the internship

• Identify the skills and knowledge that the intern will need to be successful during the internship
• Outline the methods of training that will be used during the internship, such as one-on-one instruction, online resources, classroom instruction, or on-the-job training
• Set up a timeline for training and establish a set of benchmarks that the intern must meet
• Design an evaluation process that allows for both quantitative and qualitative assessment of the intern’s performance
• Decide how often the intern will be evaluated and who will be responsible for conducting the evaluations
• When all of the training and evaluation procedures have been established, document them in the unpaid internship agreement
• Once the training and evaluation procedures have been documented in the unpaid internship agreement, the step is complete and you can move on to the next step.

Describing the process for evaluating the intern’s progress

• Establish a timeline for the intern’s evaluation process, which should be outlined in the internship agreement.
• Decide on how often and when the intern’s performance will be assessed.
• Identify the criteria that will be used to evaluate the intern’s performance.
• Create a checklist that outlines the criteria that the intern should be meeting during the internship period.
• Establish a method for providing feedback to the intern on their performance.

Once you have established a timeline, determined the evaluation criteria, created a checklist, and established a method for providing feedback, you can check this off your list and move onto the next step.

Outlining the Internship Schedule

• Determine the duration of the internship
• Decide on the start and end dates of the internship
• Agree on the days and times the intern will work
• Establish the number of hours the intern is expected to work
• Set a timeline for projects or tasks the intern will work on
• Clarify the intern’s job duties

Once you have outlined the internship schedule, you can move on to the next step which is clarifying the intern’s working hours.

Clarifying the intern’s working hours

• Establish a clear understanding of the intern’s working hours
• Discuss with the intern the general amount of hours the intern will work each week
• Specify the amount of hours the intern is expected to work
• Clarify whether the intern will work part-time or full-time
• Agree on the working hours and times
• Record the hours and times of the internship in the agreement

When this step is completed, both parties should have an understanding of the intern’s expected working hours and times.

Specifying the days and times the intern is expected to be present

• Clearly define what days and times the intern will be expected to work
• Make sure to include specific start and end times, if applicable
• Specify the amount of time the intern is expected to work each day
• Make sure to include any additional information that is necessary to ensure the intern understands their expected hours
• Make sure to specify any breaks or other allowances that the intern may have
• Once you have specified the days and times the intern is expected to be present, you can check this step off your list and move on to drafting an Internship Agreement.

Drafting an Internship Agreement

• Review the Fair Labor Standards Act (FLSA) to determine whether the intern should be paid or unpaid
• Determine the structure of the internship, such as how long it will last, when it will begin and end, and how many hours per week the intern will be expected to work
• Consider the type of work the intern will be expected to do and decide on the expectations for the intern
• Have both parties sign the agreement and have a copy for each party for their records

When you’re done, you’ll have an internship agreement that outlines the expectations of both parties and documents the length, hours, and type of work for the intern.

Preparing a written agreement that documents all aspects of the agreement

• Gather all the details of the internship, such as the duration, tasks, responsibilities, and expectations of the intern
• Draft a written agreement outlining the details of the internship, including the intern’s job description, hours, and any other relevant information
• Ensure that the agreement is reviewed and approved by both parties
• Have the intern and employer sign the agreement
• Make copies of the agreement for both parties
• Check off this step when the signed agreement has been obtained from both parties.

Ensuring that both parties sign the agreement

• Have both parties sign the agreement and make sure to keep a copy of the signed document for your records
• Ensure that both parties are well-informed of the agreement and that both parties have agreed to the terms of the agreement
• Make sure both parties have dated and initialed each page of the agreement
• Once both parties have signed the agreement, check this off your list and move on to the next step.

FAQ

Q: Is there a difference between an unpaid internship and a volunteer position?

Asked by Joseph on 14 April 2022.
A: Yes, there are distinct differences between an unpaid internship and a volunteer position. An unpaid internship is typically a structured, supervised program that provides specific training and hands-on experience in a certain career field. It usually lasts for a specified period of time (typically 3-12 months), with a predetermined set of tasks.

In contrast, volunteering is an unpaid activity that may or may not be related to a particular field or profession. Volunteering does not usually involve structured activities or specific training and can be done for as long or as little time as the volunteer wishes.

Q: How do I protect myself legally if I’m offering an unpaid internship?

Asked by Isabel on 2 June 2022.
A: When offering an unpaid internship, it is important to ensure that you have taken all necessary steps to protect yourself legally. This includes outlining the rights and expectations of both parties in writing, in the form of an agreement or contract. This agreement should include details such as the duration of the internship, any tasks the intern is expected to do, the working hours and any other relevant information.

It is also important to keep in mind any relevant laws regarding unpaid internships, such as those related to minimum wage and overtime pay. Depending on where you are located, these laws may vary significantly from country to country, so make sure to research them thoroughly before proceeding with your unpaid internship agreement.

Q: What should I include in an unpaid internship agreement?

Asked by Michael on 23 August 2022.
A: An unpaid internship agreement should include all key points related to the role and its responsibilities. This includes details such as the intern’s title and job description, the duration of the internship (whether it’s full-time or part-time), working hours, tasks expected of the intern, any training they will receive, and any other relevant information.

It should also include details related to academic credit or other forms of compensation that may be offered (if applicable). Finally, both parties should agree on what will happen at the end of the internship period - whether they will part ways or continue with their arrangement.

Q: Are there any limitations in terms of who can offer an unpaid internship?

Asked by Sarah on 6 October 2022.
A: Generally speaking, any company or organisation can offer an unpaid internship. However, it is important to note that there may be restrictions depending on where you are located - for example, some countries have laws limiting who can and cannot offer unpaid internships (e.g. certain age groups). It is therefore important to research your local laws before offering an unpaid internship in order to ensure compliance with all relevant regulations.

Q: Is it possible to extend an unpaid internship after it has ended?

Asked by David on 17 December 2022.
A: Yes, it is possible to extend an unpaid internship after it has ended - however, this will depend on both parties’ availability and willingness to continue with the arrangement. If both parties agree, then they should draw up a new agreement outlining the new terms of their arrangement (such as duration or working hours). It is also important to ensure that all relevant laws are being followed when extending an unpaid internship - for example, some countries have limits on how long interns can work without pay in certain roles.

Q: Do I need to pay taxes if I’m offering an unpaid internship?

Asked by Ashley on 27 February 2023.
A: Generally speaking, you do not need to pay taxes if you are offering an unpaid internship - however, this may vary depending on your location and any local laws that apply. For example, some countries may require employers to pay social security contributions for interns even if they are not being paid a salary or wage - so make sure to research your local regulations before proceeding with your arrangement. Additionally, some countries may also require employers to pay taxes based on the value of services provided by interns - so it’s best to consult a tax expert if you have any questions about this issue.

Example dispute

Unpaid Internship Agreement Lawsuit

• The plaintiff may cite the Fair Labor Standards Act (FLSA) in the lawsuit, as it requires employers to pay interns minimum wage, and overtime pay for hours worked over 40 hours a week.
• The plaintiff may cite a breach of contract, as the unpaid internship agreement would be considered a contract.
• The plaintiff may cite a violation of public policy, as some states have laws which prohibit unpaid internships in certain industries, or under certain conditions.
• The plaintiff may cite unjust enrichment, as the unpaid internship agreement would have provided the employer with a benefit without providing the intern with any compensation.
• Settlement may be reached via an agreement between the parties to provide the intern with back pay and/or other compensation.
• Damages may be calculated by determining the amount of wages the intern would have been owed under the unpaid internship agreement.

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