Businesses need robust HR agreements in place, and internships are no exception. Read all about internship agreements, and download this free intern contract template.
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Our templates are for general information only. You should not rely on them, and Juro is not liable for any reliance on them. The templates might contain errors, including unlawful provisions and might create risks and liabilities if used. The templates are not legal advice, nor a substitute for it. By accessing any template, you accept these terms and agree that any use is at your own risk.
What exactly is an internship agreement, and what should be front of mind for your team when creating and managing one?
An internship agreement is a legally binding contract between an employer and an individual being hired as an intern. The document sets out the terms and conditions of the employment relationship, covering everything from how long the internship lasts to the tasks that will be performed by the intern, and how they will be compensated.
However, what an internship agreement should cover will vary wildly between businesses, roles, and even geographies. Some will be paid, and others will not. There are also different legal requirements for internships in certain jurisdictions, so it’s important that you nail your internship contracts first time.
Before we get into the nitty gritty of internship agreements, let’s start by defining an internship.
Internships are short-term periods of employment that individuals can complete to increase their exposure to the workplace and gain new skills within a particular role or industry.
There are plenty of reasons why an individual chooses to complete an internship. For example, they can:
But there are also benefits of an internship for the employer, too. This is because internship agreements provide flexibility to both the employer and the intern.
Internships give employers the opportunity to work alongside great individuals and take a better educated guess on whether they’d like for them to join the company long-term. By doing this, they can reduce turnover and disruption to the business in the future.
In fact, the National Association of Colleges and Employers found that 80 per cent of the employers they surveyed believed that internships have the highest ROI when it comes to sourcing new employees, with them issuing between 50 to 60 per cent of these interns full-time employment offers.
Apprenticeship agreements are also a great way to secure hires that are earlier on in their career.
However, apprenticeships are different from internships in that they tend to involve a long-term qualification alongside the employment, and therefore are a bigger commitment for both parties to enter into.
To put it into perspective, ApprenticeshipUSA estimate that internships tend to span between one to three months, while apprenticeships tend to last between one to three years instead.
There are also some other key differences between internships and apprenticeships, including that apprenticeships are more likely to lead to a full-time role upon completion, and they often follow a structured training schedule, too.
Internship agreements are important because they protect the interests of both the employer and intern during the working relationship. Since interns tend to have less experience in the professional world, they’re at increased risk of being undervalued or mismanaged.
An internship agreement clearly documents the nature and extent of the work they’re contracted for, and it guarantees them remuneration in some cases, too. This gives them legal security if a contractual dispute arises.
There are various types of internship agreements, depending on the nature of the internship. Let’s explore a few different types of internship contracts, and how they compare.
Some agreements stipulate compensation, while others might focus on the learning experience and state that the internship is unpaid. It’s important to consider the laws in your jurisdiction here.
For example, the UK government state that an intern is entitled to the National Minimum Wage is they count as a worker. But they are not entitled to the National Minimum Wage if they complete a student internship, school work experience placement, or a voluntary role.
According to the US government, similar rules apply. Again, if the intern constitutes an employee and work for a for-profit organization, they can expect both minimum wages and overtime pay. But their status depends on a few things, as documented here.
Some intern agreements will offer the individual part-time work, while others will form a full-time contract. Either way, the agreement should specify the expected hours and days of work, and exactly what the work will involve during that time.
The rules on this aren’t too dissimilar from those in other employment contracts and job offer letters. Clarity is key.
This distinction is especially relevant in today's digital age, where the intern might be working from a different location, or completing the internship fully remote.
In fact, with hybrid workplaces becoming more prevalent, most internship agreements should default to explaining where they expect the intern to work from, and how frequently they should commute to the office - if at all.
If the intern does work remotely, it’s also wise for the internship agreement to outline how this will be accommodated.
Internship contracts are no different from other employment contracts in that they need to be clear, specific, and comprehensive. Here’s what a typical internship agreement template ought to include:
Managing internship agreements effectively is crucial for ensuring that all terms are adhered to and that both the employer and the intern have a positive experience - from hiring to onboarding, and beyond.
Juro's AI-native contract management platform offers several features that can streamline the process of creating, managing, and storing internship agreements, so you can focus on what matters most: intern experience.
Here’s how you can leverage Juro to manage these agreements more effectively:
Juro’s automated contract templates enable you to strike a balance between watertight internship agreements, and fewer blockers from legal. Instead of getting legal involved in every internship agreement you draft, you can self-serve on the contract using a template pre-defined and approved by your legal counsel.
Juro’s automated workflows allow you to streamline the approval process for internship agreements. By setting up predefined workflows, you can ensure that agreements are reviewed and approved by the right people at the right time, without unnecessary delays.
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Juro’s electronic signature capabilities make it easy to finalize internship agreements. Both the employer and the intern can sign the agreement electronically, eliminating the need for physical documents and speeding up the process.
Storing and organizing internship agreements is made simple with Juro’s data-rich, intuitive contract repository. All agreements are securely stored in a centralized location, making it easy to retrieve, review, and manage them as needed.
Juro is a trusted partner for HR agreements, powering more than 2m+ contracts for some of the world's fastest growing businesses. To find out more about how Juro's contract management solution can help you reduce time-to-hire and deliver a better candidate experience, fill in the form below. For more HR-related templates, we've got you covered:
