As an employer, you should ensure that any internship opportunity conforms to legal requirements. Its also good practice to provide a structured environment in which graduates will work, and to treat them with the same fairness and respect as you would other employees.
See the Business Link website for information on employees' rights, employment contracts, health and safety and more:
The government is encouraging employers to pay a wage that reflects both the value of the intern's contribution and the level of training and support offered by the employer.
However, in some circumstances, employers may wish to offer unpaid internships. Before you decide to offer an unpaid opportunity, make sure you have taken account of the guidance on minimum wages. It will then be for graduates to decide whether the benefits of taking up the internship outweigh the fact that it is unpaid.
If you offer an unpaid or expenses-only internship, you will have the same health and safety responsibilities to the intern as you have for any paid employees.
From January 2010, graduates who graduated in 2009, and who have been receiving Jobseekers Allowance for six months or more, may be able to do an unpaid or expenses-only internship for up to 13 weeks at the same time as claiming a training allowance from Jobcentre Plus.
To find out what you need to do if you offer an internship to a graduate claiming a training allowance, follow the link below.