EXPERIENCE OR EXPLOITATION?
THE ISSUES AROUND UNPAID WORK ARRANGEMENTS IN AUSTRALIA
In April 2012 the Fair Work Ombudsman (FWO) commissioned research into the nature, prevalence and regulation of unpaid work experience, internships and trial periods in Australia. The research was completed in January 2013 by Adelaide University Law School Professors, Andrew Stewart and Rosemary Owens. Findings will inform FWO education and enforcement activities in the area of unpaid work.
ISSUE
•	Determining if a person is entitled to minimum wage and other employee entitlements requires consideration of each case’s own particular facts.
REPORT RECOMMENDATION
•	Better define unpaid work experience.
FAIR WORK OMBUDSMAN RESPONSE
•	Work to establish a position on what constitutes unlawful unpaid work arrangements and how FWO will seek to regulate those arrangements.
ISSUES
•	Genuine lack of understanding and clarity about the legality and legitimacy of unpaid work arrangements.
•	Common misconception that work integrated learning can be unpaid.
•	Legitimate vocational placements play an important and beneficial role in the pathway from education to work.
REPORT RECOMMENDATION
•	Expand guidance and education activities.
FAIR WORK OMBUDSMAN RESPONSE
•	Review existing and develop further FWO education resources for particular types of work experience and industries.
ISSUES
•	Unpaid internships are prevalent in most professional industries.
•	Unpaid work arrangements are often considered a prelude to paid work.
•	Belief that unpaid internships are mutually beneficial and should not be discouraged.
REPORT RECOMMENDATION
•	Conduct targeted campaigns in key industries.
FAIR WORK OMBUDSMAN RESPONSE
•	Increase levels of compliance by enhancing deterrence effects at the industry and geographic level, focusing on sectors where unpaid work is prevalent.
•	Investigate any arrangements on the basis of a legitimate complaint to stop exploitive practices rather than stifle opportunity.
ISSUE
•	Growing number of businesses are using unpaid work schemes as an alternative to hiring paid staff - if this trend is left unchecked it’s likely to gather pace as employers try to  maintain competitive advantage.
REPORT RECOMMENDATION
•	Instigate legal action before relevant courts where appropriate.
FAIR WORK OMBUDSMAN RESPONSE
•	Continue to devote resources to initiating proceedings where unpaid work arrangements are being used to exploit workers.
ISSUES
•	International students and temporary visa holders are especially vulnerable to unpaid work as they seek to secure access to permanent residency. 
•	Organisations exist whose business is the promotion and facilitation of unpaid work opportunities.
REPORT RECOMMENDATION
•	Improve liaison with relevant government agencies.
FAIR WORK OMBUDSMAN RESPONSE
•	Engage with DIAC, ACCC and APSC to alert agencies to  potential illegality of unpaid work arrangements and to encourage information sharing.
ISSUE
•	Significant number of people, especially youth and migrants who may be unaware of their workplace rights, are being asked to undertake unpaid trials and internships.
REPORT RECOMMENDATION
•	Initiate engagement with key stakeholders representing employers and employees, with an emphasis on vulnerable workers.
FAIR WORK OMBUDSMAN RESPONSE
•	Run free and voluntary educative program for the higher education sector.
•	Invite employers in unpaid work prevalent industries to participate in FWO’s National Employer Program.