Limits on Unpaid Internships Start

Summary#

This order (SI/2020-49) sets September 1, 2020 as the date when parts of the Economic Action Plan 2015 Act, No. 1 take effect. In practice, it activates changes that limit unpaid internships in federally regulated private-sector workplaces and spells out protections for interns and student interns.

What it does#

• Fixes September 1, 2020 as the day sections 88 to 92 of the Economic Action Plan 2015 Act, No. 1 come into force.
• Changes Part III of the Canada Labour Code so that:
  • People doing placements that are not part of an educational program are treated as employees and must be paid (including minimum wage).
  • Student interns who are doing placements to meet an educational program’s requirements may be unpaid, but will get specific labour-standards protections set out in regulation.
• Includes the new Standards for Work-integrated Learning Activities Regulations, which set rules such as which educational institutions qualify, what paperwork is needed before a placement starts, and which labour protections apply to student interns.
• Notes that occupational health and safety protections for interns under Part II of the Canada Labour Code had already come into force on September 14, 2015.

Who's affected#

• Interns and student interns in the federally regulated private sector.
• Employers in sectors under federal jurisdiction (for example, banks, interprovincial and international transportation, telecommunications and broadcasting, grain handling).
• Educational institutions that arrange or approve work-integrated learning placements.
• The Canada-wide count cited in government material showed about 10,849 paid interns and 2,346 unpaid interns in federally regulated workplaces; it’s not clear how many people will be newly affected by the change beyond those figures.

Why it matters#

• The rules make it harder for employers in federally regulated industries to use unpaid internships unless the work is part of a formal educational program.
• People doing placements that aren’t part of a program should now get pay and core labour protections (hours limits, days of rest, general holidays).
• The new regulations aim to reduce exploitative unpaid placements and clarify when an internship can legitimately be unpaid.
• Communications and guidance are expected to explain the differences between “interns” and “student interns,” because the two groups get different protections.