Unpaid work

Find out the difference between unpaid work and paid work.

On this page:

Reasons for unpaid work

Unpaid work can happen for a number of reasons. These include to:

  • give a person experience in a job or industry (such as work experience and internships)
  • provide training and skills or work experience as part of formal programs to help people to find work (such as student placements)
  • test a person’s job skills (such as unpaid trials)
  • volunteer with a not-for-profit organisation.

Unpaid work is lawful if the person doing the work isn’t an employee.

When the person is an employee, they are entitled to pay and conditions under the Fair Work Act. For more information on how to pay employees, visit Paying wages.

Work experience and internships

Work experience or internships are common ways for people to get practical, entry-level knowledge about working.

Examples of common arrangements include:

  • high school students doing a short work experience opportunity
  • tertiary graduates starting a temporary unpaid internship after leaving education
  • workers changing careers learning new skills.

If there’s no employment relationship, the person doesn’t need to be paid. However, if there is an employment relationship, the person is an employee and must be paid.

There are no specific rules about work experience or internships under the Fair Work Act.

Student placements

Student placements, also known as vocational placements, can give students skills to help them transition from study to work.

The placement can be arranged by the student or the educational organisation (the host).

Placements that meet the definition of a vocational placement under the Fair Work Act don’t need to be paid.

Under the Fair Work Act, a vocational placement is allowed to be unpaid if:

  • there is no entitlement for the student to be paid for their work
  • the placement is a requirement of an education or training course
  • the placement is lawful (such as approved courses offered by training bodies, colleges, universities and schools).

If the placement doesn't meet all the criteria, it’s not a vocational placement. The student and host should check if there is an employment relationship.

Example: Vocational placement

Harper is doing an elective for his accounting degree. The elective is a 3-month placement at an accounting firm. The placement counts as credit towards his degree.

Because the placement is part of his course, it meets the definition of a vocational placement. This means he’s not an employee and isn’t entitled to be paid wages or get other conditions of employment.

Example: Not a vocational placement

Adam recently finished a journalism degree and is looking for work. He responds to an ad to write for a news website for 3 months as an ‘unpaid intern’.

He wants to get experience and increase his chances of employment. Because Adam has already finished his degree and the placement wasn’t required by his course, it isn’t a vocational placement.

The business tells Adam that he’ll be given specific tasks with deadlines and that he’s expected to be at work during normal business hours. This suggests Adam has been engaged as an employee and is entitled to be paid and get other conditions.

Unpaid trials

When a person is applying for a job, they might be asked to do an unpaid trial or work trial.

The trial is used to assess if the person is suitable for the job by getting them to demonstrate their skills.

Sometimes, unpaid trials are unlawful. This can be when the trial:

  • isn't necessary to demonstrate the skills required for the job
  • has continued for longer than is actually needed to check the person’s skills, which can vary depending on the nature of the work
  • involves more than a demonstration of the person’s relevant skills, or
  • isn’t being directly supervised.

If the person works longer than reasonably required to demonstrate their skills, they must be paid the appropriate minimum pay rate.

Example: Lawful unpaid trial

Jessica applies for a job as a trades assistant at a local panel beater.

Jessica is told by the owner that after the interview, she’ll need to show she knows the basic skills needed for the job. Jessica agrees.

After the interview, Jessica is watched by one of the workers doing body repairs. This is to make sure she knows how to work safely and use the right tools. Jessica shows she meets the minimum criteria for the role and the owner offers Jessica the job.

Jessica’s brief trial was reasonable to demonstrate her skills and she doesn’t need to be paid for the trial.

Example: Unpaid trial that should be paid

Hasan applies online for a job as a barista. The position description says the successful candidate needs at least 3 years’ experience and must be able to make a wide range of coffees.

At his interview, Hasan is told he’ll need to work the first week unpaid while the manager sees if he is right for the job. Hasan is also told that if he isn’t able to work any of his shifts in the first week, he’ll need to arrange someone to cover his shift.

The length of the trial and the requirement to organise cover for any shifts he can’t work suggest that the arrangement is an employment relationship. This means Hasan should be paid for all hours worked at the appropriate minimum pay rate.

Volunteering

Volunteering is where someone gives their time to support a cause, typically for a charity or not-for-profit organisation.

Volunteering is unpaid.

A volunteering arrangement could turn into an employment relationship.

If a volunteering arrangement starts to become similar to an employment relationship, it’s important to check if it is now an employment relationship.

For information on volunteering, visit the Australian Charities and Not-for-profits Commission’s Donating and volunteering page.

Training

Training gives people the skills and knowledge to help or do their work.

Some forms of training are unpaid, like student placements or work experience.

Employees doing training

Employees can be required to do training as part of their job.

If a person is an employee, they may need to complete training to make sure they have the right skills and knowledge to perform their job. This can include on-the-job training, online courses, formal training courses or team training.

If an employee does training as part of their job, they have to be paid for those hours. Time spent in training is time worked.

Compulsory meetings can count as time worked and need to be paid.

Problems with unpaid work

Unpaid work relationships aren’t covered under the Fair Work Act.

Checking if the work should be paid

Generally, it’s clear if an arrangement should be unpaid or paid. Before entering into any unpaid work there should be clear communication about what the arrangement is.

If there is an employment relationship, the person must be paid for their work.

For more information about checking for an employment relationship, visit our Unpaid work fact sheet.

Our information is a guide 

The information on this page is general guidance.

If you think you’re an employee and you haven’t been paid for your work, you can Contact us.

The tests to check if someone is an independent contractor can also be used to check if someone is in an employment relationship.

If you need help confirming if there is an employment relationship, you should consider seeking legal advice. Find out how at Legal help.

Workplace health and safety

People in unpaid work may still be covered by workplace health and safety rules. Learn more at Safe Work Australia’s Volunteers page.

Source reference for page: Fair Work Act 2009 section 12

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