Internship Agreement in the UK: What to Include

Hiring an intern can be a huge win for a small business or startup. You get extra hands, fresh ideas and (often) someone who’s genuinely excited to learn what you do.

But internships are one of those areas where it’s easy to accidentally create legal risk - especially if you’re moving fast, don’t have an HR team, or you’re offering something informal like “come in for a few weeks and we’ll see how it goes”.

An internship agreement is one of the simplest ways to set expectations and protect your business from day one. It helps you clearly document what the internship is (and isn’t), what you expect the intern to do, and what rights and responsibilities apply on both sides.

Below, we’ll walk you through what an internship agreement should include in the UK, common traps for startups, and when you should consider a different document (like an employment contract) instead.

What Is An Internship Agreement (And Why Do You Need One)?

An internship agreement is a written document that sets out the terms of an internship. It’s usually signed by your business and the intern before they start.

For small businesses, the main purpose is practical:

• to set clear expectations about duties, supervision and working arrangements;
• to clarify whether the internship is paid or unpaid (and why);
• to protect confidential information and business assets; and
• to reduce disputes about “what was agreed”.

Just as importantly, an internship agreement can help you manage a common legal risk: interns can sometimes be classed as “workers” or “employees” depending on the reality of the arrangement (not just the label you use). That classification affects things like minimum wage, holiday pay and employment rights.

If you’re offering an internship because you need someone to regularly “do the job”, you may actually need an employment contract. If you’re unsure, it’s worth getting advice early - it’s much easier to set it up properly than to “fix” it after someone raises concerns.

Worker, Employee Or Volunteer: Why Status Matters Before You Draft Anything

Before you decide what to put in an internship agreement, you should first think about the intern’s legal status. This is where many startups get caught out.

In the UK, an intern might be:

• a volunteer (usually genuinely optional, charitable or community-based arrangements, often with no obligation to work);
• a worker (often entitled to National Minimum Wage and paid holiday); or
• an employee (the most protected category, with broader rights).

Status depends on what actually happens day-to-day. For example, if you require set hours, provide work that benefits your business, and expect tasks to be completed, that can point toward “worker” status even if the document says “intern”.

Why This Matters For Pay And Holiday

If the intern is a “worker”, you may need to pay at least the National Minimum Wage and provide paid holiday entitlement under the Working Time Regulations.

This is why it’s risky to use a casual “unpaid internship” template without checking the structure. Even where someone is learning, if they are also working for your business in a meaningful way, pay obligations can apply. That said, some unpaid placements can be lawful in specific circumstances (for example, certain student placements that form part of a UK higher or further education course, or short work shadowing where the individual isn’t doing productive work).

When An Internship Agreement Isn’t The Right Document

If you’re hiring someone to perform a defined role for a set number of hours each week (especially where performance and deliverables matter), it may be more appropriate to issue an Employment Contract instead of an internship agreement.

And if you’re taking someone on for “a week to see how they do”, be careful - trial arrangements can trigger pay requirements too. It’s often safer to treat it like work and document it properly, rather than assuming it’s informal.

What Should An Internship Agreement Include?

There’s no single “perfect” internship agreement for every business. A tech startup offering a product internship will need different protections compared to a retail business hosting a marketing intern.

That said, strong internship agreements usually cover the following clauses in clear, plain English.

1) Parties, Start Date And Duration

Start with the basics:

• your legal business name and address;
• the intern’s full name and address;
• the start date; and
• the end date (or whether it’s fixed-term / rolling).

For startups, setting a defined duration is helpful because it avoids confusion like “am I still expected to come in next month?” and helps you plan capacity.

2) Purpose And Learning Objectives

One of the best ways to make an internship feel legitimate (and reduce misunderstanding) is to explain what it’s for.

For example:

• industry exposure and mentorship;
• building skills in a specific area (e.g. content writing, data analysis, UX design);
• supporting a specific project with supervision; and
• professional development activities (training sessions, feedback check-ins).

This is especially useful where the internship is short-term or educational in nature. It also makes it easier to justify your structure if you’re ever questioned about whether it’s genuinely an internship.

3) Duties And Scope Of Work

Be specific about what the intern will (and won’t) be doing. This prevents scope creep and protects your team from having to renegotiate expectations mid-way through.

Typical inclusions:

• the department/team they will sit in;
• who they report to;
• the kinds of tasks they may be assigned;
• whether they’ll deal with customers or suppliers;
• whether they can represent your business externally (and any limits).

If the intern will have access to systems, client lists, or sensitive strategy documents, it’s also smart to address confidentiality and data access (more on that below).

4) Working Hours, Location And Flexible Working Arrangements

An internship agreement should clearly set out the expected working pattern, including:

• days and hours (or approximate hours if flexible);
• whether the arrangement is remote, hybrid, or in-person;
• any requirements for attending meetings; and
• breaks and time off.

Even if you’re offering flexibility (common in startups), it’s still worth documenting what “reasonable availability” means - particularly if you have deadlines or client-facing commitments.

5) Pay, Expenses And Benefits

This is where clarity really matters. Your internship agreement should state:

• whether the internship is paid or unpaid;
• the pay rate (hourly/daily/weekly), and when it’s paid;
• whether expenses are reimbursed (and what counts as an expense); and
• any benefits provided (e.g. lunch allowance, travel card contribution).

If you reimburse expenses, include a simple process: receipts required, approval process, submission timeframes. This avoids awkward back-and-forth later.

If the intern is being paid and you want stronger protections (like post-termination restrictions or more detailed termination provisions), you may again be moving closer to an employment-style relationship - which is another reason to consider an Employment Contract where appropriate.

6) Confidentiality And Business Information

Interns often see a lot: pricing, customer details, marketing plans, product roadmaps, investor decks. You should assume that anything not public is potentially sensitive.

Your internship agreement should include a clear confidentiality clause covering:

• what “confidential information” includes (broadly defined but practical);
• how the intern can use the information (only for internship duties);
• not sharing information with third parties;
• secure handling (passwords, device security, not forwarding documents); and
• return/deletion of information when the internship ends.

If confidentiality is especially important (for example, you’re pre-launch or working on patentable ideas), you may also want a standalone Non-Disclosure Agreement alongside the internship agreement.

7) Intellectual Property (IP): Who Owns What The Intern Creates?

If your intern creates anything valuable - code, designs, written content, branding concepts, research, sales decks - you’ll want certainty about ownership.

This is a common blind spot for startups. If you don’t deal with IP properly, you can end up in a messy situation later when:

• you try to commercialise work an intern contributed to;
• you raise funds and investors ask who owns the IP; or
• the intern reuses work in another business or portfolio in a way that harms you.

It’s important not to assume you automatically own what an intern creates. Unless the intern is an employee (and the work is created in the course of their employment), the default position is often that the creator owns the copyright and other IP rights unless there’s a clear written assignment.

Many internship agreements therefore include an IP clause that either assigns IP to the business or requires the intern to sign a separate IP assignment. In some situations, an IP assignment may need to be executed as a deed to be effective (for example, where there’s no payment or other “consideration”).

8) Data Protection And Privacy (Especially For Customer Data)

If the intern will handle personal data (customer details, mailing lists, patient/client information, HR files), you need to think about UK GDPR and the Data Protection Act 2018.

Practically, your internship agreement should align with:

• your internal data handling rules;
• access controls (only what they need);
• confidentiality and secure use of devices; and
• what happens to data when the internship ends.

If your team has a written Acceptable Use Policy, it’s a good idea to reference it and require the intern to follow it.

9) Policies: Conduct, Social Media, IT Use And Workplace Rules

Even if your business is small, policies help you set boundaries without having to “make it up” each time an issue arises.

Your internship agreement can include a clause that the intern must follow your internal policies, such as:

• confidentiality and information security rules;
• social media guidelines (what they can post about your business);
• anti-harassment and respectful conduct expectations; and
• health and safety procedures.

If you have a more developed suite of workplace policies (common as you scale), it may be worth pulling them into a staff handbook style pack rather than trying to squeeze everything into the internship agreement.

10) Termination: Ending The Internship Early

Not every internship works out - and that’s okay. But it’s much easier to manage if the agreement clearly sets out how either party can end it.

Common approaches include:

• termination by notice (e.g. 1 week’s notice);
• immediate termination for serious misconduct; and
• ending automatically on the end date.

It can also be helpful to cover practical exit steps, like return of property (laptop, access cards), disabling access to systems, and confirming return/deletion of confidential information.

If you want a more formalised process for ending an arrangement, especially where there’s potential conflict, it may help to document matters properly with a termination letter.

Common Internship Agreement Mistakes Startups Should Avoid

Internships tend to be arranged quickly. That’s exactly why problems pop up later - expectations weren’t documented properly, and both sides assumed different things.

Here are a few common mistakes we see small businesses make.

Calling It “Unpaid” Without Checking Whether It’s Lawful

In the UK, calling something an “unpaid internship” doesn’t automatically make it lawful. If the intern is effectively working set hours and producing value for your business, minimum wage and other worker rights may apply.

Some arrangements can be unpaid (for example, certain student placements that are part of a course, or genuine work shadowing), but you should check the details. If you’re not sure where your internship sits, it’s worth getting advice before the intern starts - not after you’ve built your workflow around “free” labour.

Not Dealing With Confidentiality And IP Upfront

Startups often share sensitive information early: prototypes, growth plans, pricing models, and customer insights. Without clear confidentiality and properly drafted IP terms (including a written assignment where needed), you may have limited recourse if that information is misused or if ownership is later disputed.

At minimum, your internship agreement should address confidentiality and ownership of work created.

Giving System Access Without Guardrails

If you’re giving access to:

• customer databases,
• marketing platforms,
• payment providers,
• cloud storage, or
• internal comms tools,

you should think about access levels, acceptable use and what happens at the end of the internship. It’s not just operational - it can become a legal and data protection issue if mishandled.

Relying On A Generic Template That Doesn’t Fit Your Business

Templates can be a starting point, but internships are highly context-specific. For example, a content intern creating marketing assets raises different risks than a software intern contributing to product code.

If you’re building valuable IP or working with sensitive customer data, a tailored agreement is usually the smarter move.

Do You Need Any Other Legal Documents Alongside An Internship Agreement?

Sometimes an internship agreement is enough. Often, it works best as part of a small “bundle” of sensible protections.

Depending on your business and what the intern will be doing, you might also consider:

• A confidentiality agreement: especially for pre-launch startups or businesses with trade secrets (often done via an NDA).
• A clear IP arrangement: particularly where the intern is creating key brand assets, code, product designs, or research that will be commercialised (this is often done through an IP assignment, and sometimes by deed).
• Workplace policies: like IT use and data handling (often referenced through an Acceptable Use Policy).
• A proper employment contract: if the role looks and feels like employment rather than training (an Employment Contract can be more appropriate).
• A service-style agreement: if what you really need is a contractor (this is very different legally, and mixing it up can create legal risk around employment status and HMRC treatment - this isn’t tax advice, so get specific advice for your situation).

It can feel like a lot when you’re just trying to bring someone in to help. But getting your documentation right early usually saves you time, stress and money later - especially if you’re scaling quickly or speaking to investors.

Key Takeaways

• An internship agreement helps you set clear expectations and protect your business by documenting duties, supervision, duration, and key legal terms.
• Before drafting, think carefully about the intern’s legal status (volunteer vs worker vs employee), because it impacts pay, holidays and legal rights.
• A strong internship agreement should address scope of work, hours/location, pay/expenses, confidentiality, IP ownership (including assignment where needed), data handling, policies, and termination.
• Startups should be especially careful about confidentiality and intellectual property - don’t assume you automatically own what an intern creates unless the legal position and paperwork support it.
• If the arrangement looks like regular work with set hours and deliverables, an Employment Contract may be more suitable than an internship agreement.
• Where you’re sharing sensitive information, pairing the internship agreement with an NDA and clear internal rules (like an Acceptable Use Policy) can reduce risk.

If you’d like help drafting an internship agreement that fits your business (and your risk areas), you can reach us at 08081347754 or team@sprintlaw.co.uk for a free, no-obligations chat.