Is an unpaid internship legal in India? Yes, in general: no law defines an intern or requires a stipend, and unpaid arrangements are permitted when they are genuinely about learning, but the label doesn’t protect an employer if the intern is really doing a regular employee’s job, in which case wages can be claimed. This is general information, not legal advice.
The Position in Brief
- No definition of “intern” in Indian labour law, according to several legal guides
- No general stipend requirement, except for apprentices under the Apprentices Act, 1961
- Substance over form: courts can look past the title if the work is regular employee work
- A promised stipend is a contract, enforceable under the Indian Contract Act
- Under the new labour codes, every engagement is meant to be documented in writing, according to a PIB-based report
Why the Law Is Silent
India has never written an Internship Act.
- Indian labour law doesn’t define “intern” or “trainee,” so internships fall into a legal grey zone, according to Wisdomland
- There is no single Internship Act, and employers navigate a patchwork of rules, according to Offrd
- Unpaid internships aren’t explicitly banned, though their legality depends on how the internship operates in practice, according to World Law Digest
- Interns are generally not considered employees under the Industrial Disputes Act, 1947, so gratuity and provident fund usually don’t apply, according to AM Legals
The Apprentice Exception
One category must be paid.
- The Apprentices Act, 1961 applies to employers with at least 30 workers, who must engage a set number of apprentices, according to the National Law Review
- Apprentices are entitled to a government-revised stipend, according to Wisdomland, and a 2014 notification fixed minimum wages for trade apprentices, according to Getify HR
- Apprentices aren’t treated as employees, so they get only the benefits the Act and their contract provide, and the Provident Fund Act excludes them from the definition of employee
- A large share of internships, especially those done for college credit, don’t fall under this Act at all
When an “Intern” Is Really an Employee
This is the legal risk for employers.
- Depending on the arrangement, interns or trainees may be regarded as employees, triggering labour law benefits and compliances, according to the National Law Review
- Courts apply a “substance over form” test: if you did regular employee work, with full hours, core revenue tasks and no real training, a court can look past the title, according to eSalahKaar
- An unpaid intern performing regular employee work can be reclassified, with wages ordered, according to Offrd
- An intern doing full-time productive work similar to regular staff may argue they were an employee and claim minimum wages and other benefits for that period
What Makes an Unpaid Internship Defensible
The profile of a safe one is clear.
- Short term, with a defined end date
- Genuinely focused on learning or academic credit, according to Offrd
- Supervised and structured, with real mentoring
- Not replacing a worker or doing the revenue-producing core of the business
- Documented in a letter or agreement, with no fee charged to the intern
When It Becomes a Problem
Warning signs include the following.
- The intern works the same hours and duties as paid staff
- The internship runs for many months with no training component
- The role replaced an employee or fills a vacancy
- The company charges a fee to “join” the internship
- No written terms exist
Stipend Promises Are Enforceable
Written terms matter even without a statute.
- If your offer letter named a stipend amount, it’s a contract under the Indian Contract Act, 1872, according to eSalahKaar
- “No minimum-wage law for interns” doesn’t mean “no rights at all”
- Keep the offer letter, emails and any messages promising pay
How Common Unpaid Internships Are
The market is mixed.
- Around 35% of internship listings in India offer no stipend, and another 25% pay below ₹3,000 a month, according to Wisdomland’s summary of Internshala’s 2025 report
- The average stipend across sectors is about ₹8,000 a month, according to the same source
- These are survey figures from a job platform, not official statistics
Law and Other Professional Internships
Some unpaid internships are built into training rules.
- The Bar Council’s rules set minimum internship periods for law students: 12 weeks for the three-year course and 20 weeks for the five-year course, according to Legal Service India
- Government ministries and colleges often offer unpaid internships to students in law, economics and journalism, and these are generally fine if they’re real learning, according to Patralok
- Such arrangements are common because they’re part of a degree requirement
The Reform Debate
Proposals exist, but no change is confirmed.
- Commentators have suggested a dedicated Internship Act setting minimum standards for hours, stipends and workplace protection, according to AM Legals
- One proposal is a mandatory stipend for internships longer than about three months
- Wisdomland says reform is being actively discussed, including proposals to cap unpaid internship duration, but I couldn’t find a bill or notification
- Countries including the UK and several Canadian provinces have statutory rules, according to Legal Service India, which India lacks
What Interns Can Do
Practical steps help.
- Ask before accepting whether the role is paid and what you’ll learn
- Get the terms in writing, including duration, hours and stipend
- Keep records of the work you do and the hours you spend
- If you’re doing regular employee work without pay, seek advice from a labour lawyer or the labour department, since a wage claim may be possible
- Don’t pay a fee for an internship
What Employers Should Do
Avoid the grey zone.
- Pay a fair stipend wherever possible, since it reduces the risk of being treated as an underpaid employer, according to Offrd
- Keep unpaid roles short, educational and clearly distinct from employee work
- Use a written internship letter and keep records
- Consider the Apprentices Act route for structured, longer programmes
Where the Sources Disagree
A few conflicts matter.
- Whether interns are “not employees” outright or may be reclassified, which depends on the facts
- Whether the Minimum Wages Act applies, with one source saying it covers only the unorganised primary sector and others saying a worker doing regular work may claim minimum wages
- Several of the guides are older, so check the current labour code provisions
FAQs
Q1. Is an unpaid internship legal in India?
Generally yes. No law requires a stipend, but if the intern does regular employee work, a court can treat them as an employee and order wages.
Q2. Is a stipend mandatory?
Only for apprentices under the Apprentices Act, 1961. For ordinary interns there’s no legal minimum, though a promised stipend is an enforceable contract.
Q3. Can an unpaid intern claim wages?
Possibly, if they were effectively working as an employee, such as full-time core work with no real training. Courts look at substance, not the title.
Q4. Are internships under the labour codes?
The codes require written engagement documents, according to PIB-based reports, but I couldn’t find a rule that sets a stipend or defines interns.
