Examples of worker types and status

Example one - student internships

Andrew is a University student studying for their BSc within the biology department. During the summer he helps an academic member of staff with some research as part of an internship. The work will provide the student with beneficial learning, but it is not a requirement of their course. The student will work for a period of two weeks, and in return will receive a £500 stipend.

Although the work is called an internship, it is not a requirement of accredited UK-based further or higher education course and is therefore not a true student internship in accordance with HMRC.

Andrew is therefore classified as a worker and National Minimum Wage rules apply.

As the work is not part of Andrew's course, the department would need to book him through the Casual Worker System (Dashboard) and a right to work check undertaken. Andrew will be paid the relevant hourly rate for the work (selected by the department) and will make the relevant tax and NI contributions.

Example two - voluntary workers

Billy signs up to be a voluntary worker at a college event to gain some additional work experience. Billy is required to turn up to the event at a specific time and work a set number of hours. As part of the agreement, Billy is offered £30 as a thankyou for his support. On the day Billy decides to walk to the event as he lives close by so does not incur any travel or other expenses.

In accordance with HMRC the money Billy receives does not cover out-of-pocket expenses. Billy is therefore classified as a worker and National Minimum Wage rules apply.

Billy would have been classified as a voluntary worker in the following instances:

• If he had not been given the £30.
• He had incurred travel expenses and these had been reimbursed.

As a voluntary worker, the department would need to have completed a right to work check prior to commencing the voluntary work.

Example three - voluntary workers

Carol is a voluntary worker at the university library, to gain some additional work experience. As part of the agreement Carol is offered free books as a perk.

In accordance with HMRC the receipt of books is classified as a benefit in kind. Carol would therefore be classified as a worker and National Minimum Wage rules apply.

To keep the status of a voluntary worker Carol should not be offered or receive free books (eg a reward) or payment.

As a voluntary worker, the department would need to have completed a right to work check prior to commencing voluntary work.

Example four - work shadowing

Denise, a university student, arranges two weeks' work shadowing at a local company. This is related to her studies. At the company, Denise shadows team members in different parts of the organisation and learns about the company. Her activities are limited to observing, listening and questioning. She does not receive any payments, but can claim travel expenses.

In accordance with HMRC Denise is not a worker for minimum wage purposes as she is not performing work, only work shadowing.

As the work shadowing is related to her course, the department would need to have liaised with the Student Internship Bureau prior to engagement.

Example five - work experience

Edward is a 15 year old school student who has asked to undertake some work experience at the University. The work experience is for one week and will be based in one of the science departments. The student has arranged this through a family friend.

In accordance with HMRC Edward is not a worker for minimum wage purposes as he is of compulsory school age participating in work experience.

The science department should ensure that the relevant health and safety precautions have been taken prior to agreeing the work experience with Edward.