Unpaid Internship & Vocational Placement Agreement
Create a placement agreement that distinguishes a genuine vocational placement from a general unpaid internship \u2014 with schedule, supervision, safety, and a placement summary check before you download.
Vocational Placement vs. Unpaid Internship: Why the Difference Matters
Under the Fair Work Act, a placement is only a vocational placement \u2014 and therefore lawfully unpaid regardless of whether an employment relationship exists \u2014 if there’s no entitlement to pay, the placement is a required part of an approved education or training course, and the course provider approves it. A general unpaid internship that isn’t tied to a course doesn’t get that exemption. This generator asks about your placement type and course status upfront and adjusts the agreement, and the risk information shown, based on your answers \u2014 it doesn’t produce the same document for both situations.
When Is Unpaid Work Lawful in Australia?
The Fair Work Ombudsman’s unpaid work fact sheet explains that an unpaid arrangement outside a vocational placement can still be lawful if the person isn’t doing productive work, the main benefit flows to the person on placement, and it’s a genuine learning experience. If the person is effectively doing the job of an employee, this points toward an employment relationship \u2014 and an entitlement to be paid.
What Should a Placement Agreement Include?
- Parties, placement type and purpose
- Placement dates, duration, hours and schedule
- Workplace/location and role details
- Learning objectives, duties and skills to be developed
- Supervision, training and assessment arrangements
- Workplace health and safety requirements
- Expenses and reimbursements, if any
- Confidentiality and intellectual property, if relevant
- How the placement can end, and return of business property
- Signatures from the student, host, and educational institution where relevant
Related Documents
- Converting a placement into paid employment? See our Employment Contract Generator.
- Setting workplace behaviour expectations for interns alongside employees? See our Employee Code of Conduct Generator.
Frequently Asked Questions
What is the difference between an unpaid internship and a vocational placement?
A vocational placement is a formal arrangement that is a required part of an approved education or training course, with no entitlement to pay, and is lawfully unpaid under the Fair Work Act. An unpaid internship that isn’t tied to an approved course doesn’t have that exemption — whether it can lawfully be unpaid depends on whether an employment relationship exists.
Is it legal to have unpaid interns in Australia?
It can be, but it depends on the arrangement. The Fair Work Ombudsman says unpaid work is lawful if the person isn’t doing productive work of benefit to the business, the main benefit flows to the person on placement, and it’s a genuine learning experience — or if it meets the specific criteria for a vocational placement. If the person is effectively performing the role of an employee, they are likely entitled to be paid.
What makes a placement a genuine vocational placement?
Under the Fair Work Act, a placement is a vocational placement if there’s no entitlement to pay for the work, the placement is a required part of an education or training course, and it’s approved by the education provider. If any of these criteria aren’t met, it isn’t a vocational placement, and the host and student need to check whether an employment relationship exists instead.
What should an internship or placement agreement include?
A well-structured agreement covers the parties, placement type and dates, hours and schedule, duties and learning objectives, supervision, workplace health and safety, expenses, confidentiality, and how the placement can end, along with signatures from the student, host, and where relevant, the educational institution.
Can an unpaid intern do the same work as a paid employee?
This is one of the clearest risk factors the Fair Work Ombudsman highlights. If an unpaid arrangement isn’t a genuine vocational placement and the person is doing productive work that benefits the business in the way an employee’s work would, this points toward an employment relationship, meaning the person is likely entitled to be paid.
Methodology and Sources
This page was checked against the Fair Work Ombudsman’s unpaid work, student placements, and work experience and internships pages, current as of the last reviewed date above. OfficeDraft is not a law firm. This generator provides a document template, not legal advice. Whether an unpaid arrangement is lawful depends on the actual circumstances and applicable Australian workplace and education rules \u2014 check your specific situation before proceeding.