Getting your foot in the door can feel like the toughest part of starting a career. You see postings for “internships” that promise invaluable experience, a great resume booster, and a chance to network. The only catch? They’re unpaid.
You might think, “It’s a small price to pay for the experience, right?”
This is one of the most common and frustrating issues I see. Let’s be perfectly clear: the vast majority of unpaid internships in Ontario are illegal. Companies often use the promise of “experience” to get free labour.
So, let’s talk about your rights, the very few situations where an unpaid internship is actually allowed, and what to do if you think you’re being taken advantage of.
What Exactly Is an Unpaid Internship?
An unpaid internship is a position where you perform work for a company without getting paid. It’s often framed as a learning opportunity.
It’s important not to confuse it with:
- A Co-op Placement: This is a formal part of a school program where you earn credit. These are generally legal.
- Volunteering: This is for non-profit or charitable organizations. Working for free at a for-profit company is not volunteering; it’s employment.
The controversy is simple: in the eyes of the law, if you are doing work that benefits a for-profit company, you are an employee. And employees must be paid.
Are Unpaid Internships Legal in Ontario?
Ontario’s Employment Standards Act (ESA) is very clear. If you meet the definition of an “employee,” you must be paid at least the minimum wage. Most interns are, by definition, employees. They have set hours, perform tasks that help the business, and are supervised by a manager.
There are only a handful of very specific, narrow exceptions where someone can be an unpaid intern.
When Can an Employer Legally Offer an Unpaid Internship?
This is the part many employers get wrong. For an unpaid internship to be legal, it must meet all six of the following conditions set by the Ministry of Labour:
- The training is similar to what you’d get in a vocational school.
- The training is for the benefit of the intern (not the employer).
- The employer gets little to no benefit from your work.
- Your training doesn’t take the place of a paid employee’s job.
- The employer isn’t promising you a job at the end of the internship.
- You’ve been told upfront that you will not be paid.
The main takeaway? If the company is benefiting from your work, it’s not a legal unpaid internship. The only other major exception is if the internship is part of a program approved by a university, college, or private career college (like a co-op).
Red Flags: When Is an Unpaid Internship Illegal?
Here are the signs that you should be getting paid:
- It’s not connected to a formal school program. If you’re not getting course credit, be very skeptical.
- You are doing the work of a regular employee. If you’re answering phones, writing reports, making sales calls, or doing anything that a paid employee would normally do, you should be paid.
- The company is clearly benefiting from your labour. If your work contributes to the company’s bottom line, you’re an employee.
- They dangle the “possibility of a job” as the reward. This is a classic tactic to get free work.
Your Rights, Even as an Unpaid Intern
Even in a legal unpaid internship, you are not without rights. You are still protected by laws covering:
- Workplace Health and Safety: You have the right to a safe work environment.
- Human Rights: You have the right to be free from harassment and discrimination.
The employer is not off the hook for providing a safe and respectful workplace just because they aren’t paying you.
How to Tell If You Should Be Paid
Ask yourself these simple questions:
- Am I here primarily to learn, or am I here to work?
- Is my work replacing a paid employee or helping the company avoid hiring one?
- Is the main benefit of this arrangement for me (learning) or for the company (free labour)?
If you feel like a regular employee, you should be paid like one.
What to Do If You’re in an Illegal Unpaid Internship
If you read this and realized something isn’t right, you have options.
1. Document Everything: Keep a detailed record of your hours, the tasks you performed, any emails or instructions from your supervisor, and any evidence that your work benefited the company.
2. File a Complaint: You can file an employment standards claim with the Ministry of Labour. They can investigate and order the employer to pay you back wages for all the hours you worked.
3. Contact an Employment Lawyer: This is especially important if you’re unsure about your situation or if your employer is pressuring you. A lawyer can help you understand your rights and figure out the best way to get the pay you’re owed.
Speak With an Ontario Employment Lawyer About Your Rights
You might feel like you don’t have a right to complain because you agreed to work for free. That’s not true. You cannot sign away your basic employment rights. Getting “experience” shouldn’t come at the cost of being exploited.
Your time and your work have value. Don’t let anyone tell you otherwise.
If you’re working in an unpaid internship and you feel it’s unfair, contact our firm. A confidential review of your situation can help you determine if you should be getting paid and what steps you can take.
