Example: Unpaid trial to demonstrate relevant skills

Jack applies for a job as a trade assistant at a panel beater. The owner tells him that during the interview he’ll need to show he knows his way around a car and a workshop, because it’s essential for the job. Jack agrees.

After the interview, Jack is asked to follow a tradesperson doing body repairs. The tradesperson monitors Jack closely to check that he can work safely and use the right tools. Jack shows he meets the minimum requirements, and the owner offers him the job.

Jack’s short trial was reasonable to demonstrate his skills, so it’s likely he doesn’t need to be paid for it.

Example: Unpaid trial that goes beyond a skills demonstration

Suki applies for a barista job at a university cafe. The job is advertised for Monday, Tuesday and Thursday mornings from 7 .00 am to 12 .00 pm. The successful candidate needs to have experience and must be able to make a wide range of coffees.

At her interview, Suki is told she must work the first week unpaid so the cafe manager can see if she’s suitable and so that she can cover lunch breaks for other staff. She’s also told that if she can’t work one of these shifts, she must find someone else to cover it.

The length of the trial and the need to cover lunch breaks for other staff, and her shifts, suggests the trial is not just for the purpose of assessing Suki’s skills. This arrangement is likely an employment relationship. Suki should be paid for all hours worked at the correct minimum rate of pay, plus other minimum employment entitlements.

Example: Unpaid trial involving productive work

Mina applies for a receptionist job at a medical centre. After her interview, the manager asks Mina to do a trial on the weekend to see if she can handle a busy period. Mina agrees and works a Saturday morning shift.

During the shift, the manager shows Mina how to answer the phone, transfer calls, book and cancel appointments, and take payments.

At the end of the shift, the manager says Mina did well, but she needs to get approval from the business owner before offering her the job. The manager asks Mina to work Monday and Tuesday without pay to show her commitment.

Because Mina was trained and performed real work, and the extra shifts go beyond what’s reasonable for a skills demonstration, this suggests an employment relationship. Mina should likely be paid for all the hours she worked.

Example: Unpaid internship focused on learning

A local council offers an internship program for high school and university students interested in learning about government. The internships are unpaid and students can choose their hours over a 2-week period.

The council makes sure the role is mainly observational, with no expectation that the students do productive work. The main benefit goes to the students, who gain experience and learning. This means it is unlikely that there is an employment relationship, and the internships are allowed to be unpaid.

Example: Unpaid internship that primarily benefits the business

A publishing company advertises an internship program for recent copywriting and journalism graduates. The ad says they want passionate applicants looking to get experience as a step towards future job opportunities. Applicants will be chosen based on academic results, work experience and references. The internships are full-time and unpaid, for 3 months. The ad promises non-monetary perks and networking opportunities, with the chance of an ongoing job at the end. Tasks include general administration, event planning, proofreading, and possibly some writing.

Although the company offers work experience and non-monetary perks, the company will still receive the main benefit because the interns will do significant productive work. Since the company is looking for graduates who have completed their degree and the placement is not a requirement of any course, it isn’t a student placement. In this case, it is likely that there will be an employment relationship and the internships must be paid.

Example: Genuine volunteering arrangement

Franko asks a local charity about volunteering at its soup kitchen because he’d like to give back to his community. He fills in an application and meets with Victoria, the volunteer coordinator. Victoria explains the volunteer duties, which include helping in the kitchen, serving food and cleaning. She makes it clear Franko will not be paid, although lunch will be provided, and he can come when he is available.

Franko agrees to let Victoria know when he can volunteer each week and understands he won’t get paid. Franko is likely not an employee, and the charity doesn’t have to pay him.

Example: Short unpaid trial to demonstrate relevant skills

Rishi attends a job interview for an experienced barista position at a busy café. After the interview, the café owner asks Rishi to stay back for about an hour so they can test his coffee making skills. They want to make sure Rishi knows the difference between a cappuccino and a soy latte! Rishi is not paid for his time.

In this scenario, a short unpaid trial is lawful as it’s an appropriate way to assess Rishi’s skills for the job. It only lasts as long as needed to demonstrate those skills and is directly supervised the whole time.

Example: Extended unpaid trial involving productive work

Petra responds to an advertisement from a hotel seeking an apprentice chef. The restaurant manager offers Petra an interview and explains that she’ll need to do an unpaid trial period of one or two days, during which they’ll assess her suitability for the role. Petra accepts the offer as she’s keen to secure the apprenticeship.

Petra’s duties include assisting cooks and chefs to prepare and store food, washing dishes and cleaning work areas. At the end of each shift, the restaurant manager tells Petra that she’ll need to come back the next day because the boss isn’t available to make a decision. Soon Petra has worked more than a week without being paid.

This unpaid trial is unlawful, regardless of whether Petra secures the apprenticeship. She is undertaking the work of paid employees, and the business is receiving a significant benefit from her labour. Petra should be paid for the duration of her trial.

Example: Short unpaid trial to demonstrate relevant skills

Logan sees a vacancy notice in the shop window of his local barber and decides to apply. Logan is a qualified barber, but he hasn’t worked in the industry for a few years. Wayne, the shop owner, suggests that Logan undertake a short trial to see if his skills are still up to scratch. Logan agrees.

Under Wayne’s supervision, Logan completes several haircuts over the course of an hour. Before each haircut, Wayne informs the customer that Logan is doing a trial and does not charge the customer for the cut.

Impressed by Logan’s performance during the short trial, Wayne offers Logan the job and starts paying him for each shift thereafter. In this example, Logan’s unpaid trial is lawful. It is for a reasonable length of time and is a strict demonstration of Logan’s skills, with no benefit flowing to Wayne’s business.

Example: Unpaid work experience that primarily benefits the business

Zainah is in her final year of high school and is considering a career in hairdressing. Zainah’s mum arranges for her to do some work experience at her local hair salon. The arrangement has no connection with Zainah’s high school studies. Zainah is required to attend the salon after school every Tuesday and Friday over a 3-month period.

Zainah’s time at the salon goes beyond simple observation and she begins doing tasks that would usually be done by the other staff. This includes cleaning, replenishing supplies and tending to customers. At all times, Zainah is expected to follow the direction of the salon manager and work productively.

While there may be an element of learning for Zainah in this arrangement, the work she is doing is overwhelmingly for the benefit of the employer. Zainah should be paid at the appropriate rate of pay for the hours she works.

Example: Student placement that extends beyond course requirements

Omar completes a 30-day student placement at an advertising company as part of his marketing degree. He really enjoys the work and becomes involved in a major campaign the company is working on. The manager of the advertising company offers Omar the opportunity to continue the arrangement over the semester break so he can see the campaign through to the end. Omar agrees and works unpaid for 3 weeks over the semester break.

As the extra work performed over the semester break isn’t a requirement of Omar's marketing degree, it doesn’t form part of the student placement. If Omar is completing productive work during the 3 week period, this will likely become an employment relationship and Omar will be entitled to be paid for the work performed.

Example: Unpaid work experience that primarily benefits the business

Johan is a final year accounting student. He agrees to do unpaid work experience with an accounting firm and has been promised employment once he graduates. Johan attends the firm for 3 days a week. He completes a range of productive tasks for the firm, including customer tax returns and company financials, which are both charged to clients.

Although Johan has agreed not to be paid, the nature of the arrangement is consistent with an employment relationship and he is entitled to be paid for all hours worked at the appropriate minimum rate.

Example: Unpaid internship focused on observation and learning

A commercial radio station places an advertisement looking for students to work on a voluntary basis for one day a week over a 6-month period. The placement offers hands on experience with a potential for job opportunities, but won’t count towards the students’ course credits.

When they start, the radio station asked the interns to sign agreements that detail the training they will receive. As part of their internships, the students will observe the program producers creating and developing radio programs, and listen in while radio producers present live on-air or create pre-recorded content. They will not undertake these activities themselves, other than on a ‘dummy’ or test basis.

While participants primarily watch and learn, they occasionally do some hands on work under supervision, such as selecting music tracks and editing advertisement packages. An employment relationship doesn’t exist and the students don’t need to be paid, because there is neither a significant benefit to the radio station from the work, nor any expectation on the interns to perform productive work.

Example: Unpaid internship that primarily benefits the business

Sally is in her final year of a journalism degree. She wants to work in print and broadcast media when she finishes her studies, so she takes an unpaid internship with her local newspaper.

Sally’s lecturers encourage her to seek out the opportunity because it will help her gain experience in the industry. She also knows that it can be very difficult to secure a cadetship in the industry if she doesn’t have any relevant work experience. The internship doesn’t count towards the completion of her degree and isn’t directly organised by the university.

The internship lasts for 6 months. Sally spends many hours each week interviewing people and attending events for the newspaper. She also researches background information for articles and drafts and submits her articles under publication deadlines.

Sally should be paid for her work as there is most likely an employment relationship. The newspaper gains a significant benefit from Sally’s work, and she is obliged to perform to the newspaper’s standards.