Paid vs. Unpaid Internships: Legal Rules for Students in the US, UK, France, Canada, and Germany

Unpaid internships can be legal, but only under strict conditions. Many unpaid roles are actually illegal unpaid labour. This guide explains the actual legal tests used in five major countries, the red flags that signal an internship may be unlawful, and what you can do if you think you are being underpaid or misclassified. For the broader international internship picture, see our Internships for International Students guide.

Quick Answer

United States: The FLSA “Primary Beneficiary” Test

In the US, the Fair Labor Standards Act (FLSA) requires that employees be paid at least minimum wage and overtime. However, unpaid internships in the for‑profit private sector are permitted if the intern is the “primary beneficiary” of the relationship, not the employer. The U.S. Department of Labor uses a seven‑factor test to determine who benefits most. No single factor is decisive; the test is meant to be applied on a case‑by‑case basis.

If most factors point to the employer benefiting more than the intern — for example, the intern is doing routine work that would otherwise be done by an employee, or there is no educational component — the intern is likely an employee under the FLSA and must be paid at least minimum wage and overtime.

Note: The primary beneficiary test applies to for‑profit employers. Public sector and non‑profit organisations have different rules, though unpaid internships there must still generally serve a charitable or educational purpose.

📘 For US work authorization rules, including CPT/OPT and remote internship restrictions, see our CPT vs OPT guide and Remote Internships guide.

France: Mandatory Convention de Stage and the Gratification Threshold

In France, unpaid internships are only legal if they are integrated into a formal educational program and are governed by a convention de stage (tripartite internship agreement signed by the student, the school, and the employer). An internship without a convention de stage is illegal.

If the internship lasts more than 2 months (or 44 full days of 7 hours each, or 308 hours), the intern must receive a gratification (minimum monthly stipend). The amount is set by law and is 15% of the hourly social security ceiling.

As of 1 January 2026, the minimum gratification is €4.50 per hour. For a full-time intern (35 hours/week), this amounts to approximately €680–€700 per month. The 2025 rate was €4.35 per hour. The exact figure is updated annually, so always check the current rate.

📘 For French internship visa details, including VLS‑TS and convention de stage requirements, see our France Internship Visa Guide.

United Kingdom: National Minimum Wage and Intern Exemptions

In the UK, the National Minimum Wage (NMW) applies to anyone who is a “worker” under the law. Most interns are workers if they have a contract (written or implied), are required to turn up, and are doing work for the employer. That means they must be paid at least the NMW for their age.

However, there are a few narrow exemptions where an intern is not considered a worker and can be unpaid:

• Students on a higher or further education course undertaking a placement as part of that course, where the placement does not exceed one year.
• Work experience placements arranged by a school or college for students under 16.
• Voluntary workers for charities, voluntary organisations, or associated fund‑raising bodies.
• Shadowing — where the individual is only observing and not performing any work.

If none of these exemptions apply and the intern is expected to do real work, they must be paid at least NMW. The burden is on the employer to prove an exemption applies.

📘 For UK internship visa options and student work rights, see our UK Internship Visa Guide.

Canada: Strict Restrictions on Unpaid Internships

Canada has some of the strictest rules on unpaid internships. Federally and in most provinces, unpaid internships are presumed illegal unless they fall within a specific statutory exception. The general rule is: if you are performing work that benefits an employer and you are under their direction, you are an employee and must be paid.

In Ontario, under the Employment Standards Act, 2000 (ESA), individuals performing work for an employer are generally considered employees and must be paid at least minimum wage. Unpaid internships are only permitted in two narrow circumstances:

• School-approved placements — if the internship is a formal requirement of a college or university program and has been approved by the institution.
• Professional trainee exemptions — certain regulated professions (law, architecture, engineering, medicine, etc.) may have specific training exemptions.

Even for school-approved placements, the internship must be primarily for the benefit of the student, and the employer must derive little or no benefit. If the employer receives a significant economic advantage, the intern is likely an employee and must be paid.

📘 For Canadian co‑op and work permit rules, see our Canada Internship Work Permit Guide.

Germany: The 3‑Month Rule for Voluntary Internships

Germany’s Minimum Wage Act (Mindestlohngesetz) sets out clear rules for when interns must be paid. The key distinction is between mandatory internships (Pflichtpraktika) and voluntary internships (freiwillige Praktika).

• Mandatory internships required by a study or training programme are exempt from the minimum wage regardless of duration.
• Voluntary internships lasting more than 3 months must be paid at least the statutory minimum wage, which is €13.90 per hour as of 1 January 2026.
• Voluntary internships lasting 3 months or less may be unpaid, but only in certain circumstances (e.g., orientation internships) — and the employer must clearly demonstrate that the intern is the primary beneficiary.

If a voluntary internship exceeds 3 months, the employer must pay at least minimum wage for the entire duration, not just the period beyond 3 months. This rule applies to all interns, regardless of nationality.

📘 For German intern work permit rules, the 140/280‑day allowance, and post‑graduation options, see our Germany Internship Visa Guide.

Red Flags: How to Spot an Illegal Unpaid Internship

Even in countries where unpaid internships can be legal, many employers misuse them. Here are common signs that an “unpaid internship” is actually illegal unpaid labour:

• You are doing the same work as paid employees but without pay.
• There is no educational component — no training plan, no supervisor assigned to teach you, no academic credit.
• The internship is not connected to your university or college, especially in countries like France or Canada where this is required.
• The employer expects you to work full‑time for an extended period with no end date or a duration that far exceeds what is reasonable for learning.
• You are promised a paid job at the end but only if you “prove yourself” during unpaid work — this often signals an employer trying to get free labour.
• The employer cannot provide a written agreement or refuses to outline your responsibilities and training.
• You are asked to sign a waiver of your wage rights — such waivers are generally not enforceable if you are legally an employee.

What to Do If You Suspect Underpayment or Misclassification

If you think your internship is illegal unpaid labour or you are being paid less than legally required, take these steps:

1. Document everything. Save emails, messages, the internship agreement, timesheets, and any work you produced. Note the dates, hours, and tasks.
2. Check the law. Use the tests above to evaluate whether the employer is likely violating wage laws.
3. Talk to your university. Career services or the international student office can often advise on whether an internship is legitimate and may intervene on your behalf.
4. Contact a labour rights organisation. In the US, the Department of Labor’s Wage and Hour Division accepts complaints. In the UK, ACAS provides free advice. In Canada, provincial employment standards branches handle complaints. In France, the DREETS (formerly DIRECCTE) handles labour disputes. In Germany, the customs authority (Zoll) enforces minimum wage laws.
5. Do not confront the employer alone. If you are still working there, remain professional and seek external advice before taking any formal action.

Frequently Asked Questions

Official Sources & Further Reading

• U.S. Department of Labor — Fact Sheet #71: Internship Programs Under the FLSA
• ACAS — Unpaid Internships (UK)
• Ontario Ministry of Labour — Internships
• French Ministry of Labour — Stages (Internships)
• German Minimum Wage Act — Section 22 (Interns)

Christian Chinonso

Christian Chinonso is the founder of LearnViaHub, with 6+ years of research experience in international education, GPA systems, and study-abroad guidance for international students.Christian Chinonso is the founder of LearnViaHub, with 6+ years of research experience in international education — including GPA systems, scholarships, student financing, and study-abroad guidance — for students worldwide.