Professional Documents
Culture Documents
0, 1–20 (2017)
DOI: 10.1111/ijmr.12153
C 2017 British Academy of Management and John Wiley & Sons Ltd. Published by John Wiley & Sons Ltd, 9600 Garsington
Road, Oxford OX4 2DQ, UK and 350 Main Street, Malden, MA 02148, USA
2 D. Grant-Smith and P. McDonald
practices which are collectively referred to as unpaid keyword unpaid work, provided synonyms which
work. A central contribution of this article is to clar- were subsequently used as keywords. This method
ify the terminology around the phenomenon of unpaid ensured as many relevant empirical and theoretical
work which is defined as participation in work-based themes as possible were identified across this cross-
activities that does not attract remuneration. Clarify- disciplinary field. The 145 cited sources were in-
ing terminology has pragmatic implications because it cluded via an examination of the abstract. Empirical
will allow for more consistency, accuracy and shared studies had been primarily undertaken in four national
understandings in discussions, decisions and prac- contexts: the US, UK, Canada and Australia, suggest-
tices by students, higher education institutions, or- ing unpaid work, as we have defined it for the review,
ganizations, researchers and policy makers around is a concern of the global north. Although feminist
unpaid work. scholars have expanded the category of work to in-
The article has two aims. The first aim is to conduct clude domestic labour and care work, these forms of
an integrative review (Whittemore and Knafl 2005) of work are not the focus of this article because they are
unpaid work which interrogates the extant literature not directly connected to employment, education or
on the phenomenon in order to construct a system- the workplace.
atic knowledge base. The second aim is to synthesize Within papers cited in the review, terms were rarely
these insights as a typological matrix which delin- defined and often ambiguous, especially with respect
eates four distinct forms of unpaid work along the to demarcations between what conditions would and
intersection of two dimensions – purpose of the ex- would not constitute the kind of unpaid work being
perience and level of participatory discretion. The discussed. A limited number of Tier One ‘grey’ or
matrix offers conceptual clarity around the types of non-standard citations – primarily reports published
unpaid work practices discussed in the literature and a by government agencies and international labour or-
model for decision-making and supervisory practice ganizations – were included in the review (Adams
where unpaid workers form part of an organization’s et al. 2016). These sources, identified primarily from
workforce. The review and matrix is relevant to and the reference lists of peer-reviewed sources and ac-
extends management literature in drawing out many cessed via GoogleScholar, supplemented and com-
of the implications of unpaid work for managers and plemented the peer-reviewed sources by highlighting
organizations, including legal compliance and poten- current and emerging policy1 trends and concerns in a
tial litigation risks; managerial decision-making; re- field where practice and issues in public debates have
sourcing and capacity issues; organizational benefits emerged ahead of theory and empirical research.
and costs; and the need to safeguard the rights of paid Following a complete reading of each paper, based
and unpaid workers. The article concludes by setting on a staged review (i.e., an initial review of abstracts
a research agenda for future theorizing and empirical followed by an in-depth review), the central dimen-
enquiry on unpaid work. sions of the phenomenon of unpaid work contained
therein were identified and categorized. The review
was organized in this inductive way because the field
Review methodology spans multiple disciplines and the absence of previ-
ous reviews suggests unpaid work is still emerging
The purpose of an integrative literature review as a field of scholarship in its own right. Integrative
is to ‘review, critique, and synthesize represen- literature reviews are particularly suited to addressing
tative literature on a topic in an integrated way emerging topics, such as unpaid work, which would
such that new frameworks and perspectives on benefit from a holistic conceptualization and synthe-
the topic are generated’ (Torraco 2005, p. 356). sis of the extant literature (Torraco 2005).
The review was conducted in several stages. We Through this process of synthesizing the litera-
first searched leading electronic databases includ- ture to focus on core issues, we derived five themes
ing EBSCOHost, GoogleScholar and ABI-Inform for
1
peer-reviewed, English-language sources using eight We acknowledge that the policy details outlined in this
keywords: unpaid work; work-integrated learn- manuscript are a reflection of the particular timeframe in
ing; volunteering; traineeship; practicum placement; which the research took place and as such is subject to change.
However, we have included policy issues so that the reader
welfare-based work; internship; and unpaid trial is offered a snapshot of the policy and practice landscape
work. The specification of keywords was iterative in relevant to unpaid work at the time of writing, and to which
the sense that the sources identified using the initial many of the papers cited respond.
C 2017 British Academy of Management and John Wiley & Sons Ltd.
Ubiquitous yet Ambiguous 3
around which we have organized the review com- can lead to uncertainty, not only for participants but
ponent of the article: (1) characterizations of unpaid also for businesses who offer unpaid work placements
work; (2) the prevalence and underlying drivers of un- and those who research them.
paid work, particularly in countries where it appears Internships may be offered by for-profit or not-
to be trending upwards; (3) the benefits of unpaid for-profit organizations entirely for the organization’s
work for participants, business and higher education benefit, without an established connection to formal
institutions; (4) the costs of participation in unpaid education or an educational institution. Such intern-
work across different stakeholder groups; and (5) the ships raise potential litigation risks which are dis-
scope and nature of regulation associated with un- cussed in a later section. The literature also contains
paid work in different jurisdictions. Through a crit- accounts of internships at prestigious employers, such
ical analysis which examines these ideas and their as Vogue and the Huffington Post, which can be bid
relationships, together, these themes set out a holis- on by hopeful unpaid workers or their wealthy parents
tic interpretation of the literature which challenges (Perlin 2011). Through these kinds of processes, job
and extends existing knowledge of this recent phe- seekers may ‘pay – and pay dearly – to become un-
nomenon. In the final stage of the review we used the compensated workers’ (Durack 2013, p. 251). Indeed,
critical analysis and synthesis undertaken to develop it is the very ambiguity of terms such as internship
a conceptual framework (Torraco 2005) which delin- – which can encompass paid or unpaid opportunities
eates four distinct types of unpaid work conceptual- and learning or productive work – that opens the door
ized along two key dimensions: the degree of partic- for organizations to exploit unpaid workers, irrespec-
ipatory discretion (mandatory and elective); and the tive of the potential illegality of the practice.
purpose of the experience (educative or productive In the extant literature, different forms of unpaid
focus). Finally, the article proposes a future research work are sometimes distinguished by features such
agenda. as the motivation for participation; the primary ben-
eficiary of the unpaid work (the participant or the
host organization); whether the unpaid work experi-
Characterisations of unpaid work ence incorporates distinct educational goals and out-
comes; and whether it is directly supervised by an
The terms used to designate unpaid work are vast, im- educational institution or an employer or whether it
precise and ambiguous. This also extends to a lack of is largely unsupervised. In addition to these charac-
clarity around the legitimacy and legality of some un- teristics, unpaid work is often framed in terms of
paid work practices (Malik 2015; Stewart and Owens its primary purpose: volunteering; learning; or en-
2013) which present organizational risks. In partic- hancing employability. However, these purposes and
ular, there is a confluence of ‘ambiguous statutory motivations often overlap.
language, unclear legal precedent, and non-binding
agency interpretation’ around the notion of interns
Unpaid work as volunteering
(Malik 2015, p. 1186). However, similarly vague and
overlapping definitions also exist for other types of Volunteering is often distinguished from other forms
unpaid work. For example, a recent government report of unpaid work according to the primary beneficia-
into volunteering and unpaid work placements among ries of the work undertaken. For unpaid work to be
children and young people in Australia (Parliament a genuine volunteering arrangement the work must
of NSW 2014) suggested volunteering among young be a form of civic participation undertaken for the
people should be universally promoted and supported. benefit of the community, even if it also benefits
Unpaid work placements on the other hand, although the host organization and the volunteer. Definitions
identified as a potentially ‘legitimate’ and ‘lawful’ based on who benefits (e.g. Home Office 2005) focus
means of providing valuable work experience and ex- on ‘time willingly given for the common good and
posure, were considered concerning due to ‘the im- without financial gain’ (Volunteering Australia 2016,
pacts of unethical and unlawful placements on young p. 2). Pro bono work is thus generally considered vol-
people and the wider workforce’ (Parliament of NSW unteering as it is undertaken to serve or benefit the
2014, p. ix). However, the report did not provide defi- community (Harthill 2015). This does not, however,
nitional clarity regarding volunteering or unpaid work suggest that volunteering need be overtly altruistic in
placements, either in law or in practice. This failure to nature. Participation may be motivated by the accrual
distinguish between different forms of unpaid work of benefits to the individual volunteer in terms of, for
C 2017 British Academy of Management and John Wiley & Sons Ltd.
4 D. Grant-Smith and P. McDonald
example, social contact, skills development or net- the workplace manager to provide an agreed learning
working, which may be perceived to positively in- outcome for the participant.
fluence future employment prospects (Holdsworth Apprenticeships are normally excluded from dis-
and Brewis 2014; Paine et al. 2013; Volunteering cussions of unpaid work because although they in-
Australia 2016). volve a structured combination of work-based prac-
The use of volunteers by for-profit organizations, tical experience with periods of off-job vocational
particularly for the conduct of core activities, has been learning provided by an approved training provider,
identified as inherently problematic. However, even the educational component is typically embedded in
not-for-profit sector organizations should be aware the entire learning curriculum (Atkinson 2016) and
that volunteering applies only to unpaid work under- included as part of an indentured period of paid em-
taken in ‘philosophically sound’ volunteer roles (Vol- ployment (Fuller and Unwin 2013), albeit at very low
unteering Australia 2007, p. 9) and that the use of wages (Low Pay Commission 2013; National Council
volunteers should not result in job substitution where for Vocational Education Research 2016). However,
volunteers replace paid staff roles (Volunteering the requirement to complete periods of educationally
England 2012). Volunteers may also be distinguished focused unpaid work has been entrenched in some
from other unpaid workers in that the majority of university disciplines and vocational education and
the work they undertake is to some extent voluntary, training courses for many years. In some professional
including attendance and completion of assigned du- disciplines a set period of participation is a require-
ties. It is in this level of discretion in attendance and ment imposed by licensing or registration bodies or
duties that volunteering differs from traditional work- professional associations, such as in nursing, teach-
based welfare placements, sometimes referred to as ing and social work. In vocational education, some
mutual obligation arrangements, which might also be qualifications such as early childhood education or
undertaken within the same not-for-profit organiza- aged care also have set mandatory minimum work
tions (Volunteering Victoria 2015). placement hours (Atkinson 2016). The practice has
been expanding into new disciplines and fields of
study where such external requirements did not for-
Unpaid work as supplementing education
merly exist, especially as universities and registered
There is ongoing debate over the extent to which training organizations become increasingly motivated
unpaid work is primarily about working or learn- to provide their graduates with a labour market ad-
ing (Ip 2015). Critics assert that the characteriza- vantage (PhillipsKPA 2014) and to demonstrate their
tion of unpaid work as ‘not working but learning’ responsiveness to the needs of industry. Many degree
is used to ‘legitimately den[y] a whole raft of rights, programmes offer supervised work experience, with
protections and claims to wages and working condi- credit attached, as a structured part of the curricu-
tions that are granted to other workers’ (Sukarieh and lum in order for students to gain skills and knowl-
Tannock 2015, p. 5). Periods of educationally focused edge which presumably they cannot learn in the for-
unpaid work are usually undertaken whilst participat- mal classroom (Burke and Carton 2013; Orrell 2011).
ing in high school, university or vocational training This appears, in part, to be a response to the belief
and the activities undertaken in the organization are at of some employers that universities are creating grad-
least in part structured and supported by educational uates with a strong knowledge base but without the
institutions (Jackson 2014). This kind of unpaid work ability to practically apply that knowledge in a work
is described using a range of nomenclature includ- setting (Clearly et al. 2007). Although unpaid work in
ing shadowing, supervised work experience, clinical this context is rationalized on the basis of the impor-
rotation, industry attachment, practicum, field place- tance of experiential learning in an authentic work-
ment, externship and professional practice. Organiza- place setting, there is a growing body of literature
tions which provide unpaid work placements in this critical of the effectiveness of this approach, espe-
context can expect that the activities undertaken in cially in relation to employment outcomes (Rickhuss
the workplace will be structured to integrate theoreti- 2015).
cal learning with workplace practice as an intentional The process for obtaining unpaid work as part of
part of an educational curriculum in which students’ gaining a higher education qualification varies. Some
learning is situated within the act of working (Cooper universities and courses have specialist administra-
et al. 2010). As such, these arrangements constitute a tive staff who organize and manage placements on
collaboration between the educational institution and behalf of students; in other instances the academic
C 2017 British Academy of Management and John Wiley & Sons Ltd.
Ubiquitous yet Ambiguous 5
responsible for individual subjects mediates between programme as part of mutual obligation requirements
students and host organizations. However, it is in- (Dar 2015).
creasingly common for students and recent grad- Unpaid work may also be undertaken as a work trial
uates to source and negotiate unpaid work place- or as unpaid training. A work trial involves periods of
ments through their own informal networks (Tholen unpaid work undertaken for the purpose of demon-
et al. 2013) or via the services of private ‘brokers’ strating to an employer the skills and knowledge to
(Standing 2011). Brokers typically charge significant secure a paid job. Unpaid trials involve the demon-
fees2 to identify and negotiate placements in domes- stration of relevant and specific skills over a short time
tic or international internships (Perlin 2011; Steffen period, the intention of which is to lead to employ-
2010; Swan 2015). These internship intermediaries ment in a specific and currently vacant job. Within
appear to be increasingly numerous and visible in the the Australian context, for example, for a work trial
youth employment landscape. In relation to domes- to be legal, the worker should work under the direct
tic students participating in international internships supervision of an appropriately qualified supervisor
specifically, these agencies have prompted major con- for the entire trial (Fair Work Ombudsman (FWO)
cerns and their conduct is often resistant to effective 2014; Stewart and Owens 2013). In contrast, unpaid
enforcement of national labour standards (Gordon training comprises the accumulation of work expe-
2015), not least because of their global reach. rience or training undertaken prior to remuneration
being received or an employment arrangement being
reached. Reference to unpaid training within the liter-
Unpaid work as employability enhancing
ature, and its implications for organizations in the US
It has been argued that despite the learning oppor- context, is commonly tied to the training of railroad
tunities that may be offered by some forms of un- brakemen in the Walling v Portland Terminal case and
paid work, the key motivations for and outcome of the precedent it set for the regulation of unpaid intern-
participation is enhancing employability (Discenna ships in that country (see Gessner 2015; Reid 2014).
2016; Smith et al. 2015). Studies adopting student- In this case, the non-payment of trainees was deemed
centred perspectives have found that participants con- to be lawful because the training was considered to
sider these opportunities an essential strategy for benefit the intern and the employer derived no imme-
gaining a competitive edge in the graduate mar- diate advantage from the activities (US Department
ketplace (Cannon and Arnold 1998). Unpaid work of Labor 2010).
is seen as a future-oriented ‘braggable investment’
that may translate into employment opportunities
(Corrigan 2015, p. 341). Prevalence of unpaid work
Governments too are focused on realizing the em-
ployability enhancing potential promised by partici- Although unpaid work, particularly in the form of un-
pation in unpaid work. This is particularly the case for paid internships, is characterized in much of the crit-
unpaid work that is funded, facilitated or mandated by ical academic literature as representing ‘a uniquely
governments as part of proactive labour market poli- vulnerable, growing sector of the working force’
cies targeting the unemployed (Hadjivassiliou et al. (Frederickson 2013, p. 253), a limited number of
2012). These are sometimes referred to as ‘workfare’ large, empirical studies have been conducted that as-
(Dar 2015) or work for the dole schemes (Bessant sess the shifting contours of what appear to be upward
2000; Borland and Tseng 2011) where eligible job trends in participation in unpaid work. Even fewer
seekers receiving government income support may be studies have focused on quantifying the benefits of
required to participate in an unpaid work experience participation in unpaid work, either to organizations
that utilize unpaid workers, or in terms of objective
2
As an example, the website of Australian internship broker employment outcomes for participants. The extant
Australian Internships charges an AU$500 application fee, literature consistently laments this paucity of empir-
with ‘outstanding fees’ to be paid following a pre-screening ical data and relies heavily on anecdotal evidence
interview with the agency, an interview with the Host Organ- presented in media reports, especially of exploitative
isation and confirmation of the formal training agreement. organizational and management practices; case law,
It is unclear whether the application fee is credited to the
applicant if an internship does not proceed. Costs for similar particularly in the USA where there has been an
brokering services have been estimated to be in the range of increasing trend towards successful claims against
US$6750 to US$9499 (Durack 2013). (usually large) organizations of compensation for lost
C 2017 British Academy of Management and John Wiley & Sons Ltd.
6 D. Grant-Smith and P. McDonald
wages (such as the highly publicized Black Swan case unpaid work in a wide variety of organizational set-
detailed later in the paper); and the work of advocacy tings. A Canadian survey found similarly widespread
groups, such as the Carrot Workers Collective (2011) experiences, with 42% of university students report-
in the UK and Interns Australia (2015). The literature ing having taken part in some institutionally orga-
also frequently cites semi-regular studies of students nized, educationally focused unpaid work (Kramer
conducted by the National Association of Colleges and Usher 2011). UK-based Graduate Prospects
and Employers (NACE 2016) and consulting firm In- (2011), which described internships as the ‘new de-
tern Bridge (Gardner 2011), and the accounts pre- gree’, reported on a survey of 22,000 graduates, that
sented in Ross Perlin’s (2011) Intern Nation. 45% of British graduates now move into entry-level
Research based on primary data is largely qual- jobs though this route. However, although this and
itative, based on small samples and focused on some other research supports the assertion that intern-
the UK, USA and Australian contexts. Siebert and ships help graduates obtain employment, studies are
Wilson (2013, p. 4) for example, discussed the pre- usually based on surveys of students or employer per-
paredness of creative industries graduates to work up ceptions rather than objective employment statistics.
to 1000 hours for free to ‘ingratiate themselves with The prevalence of participation in unpaid work has
the industry, get their face noticed and get ahead’. also been demonstrated beyond student cohorts. For
Carnevale and Hanson (2015) estimated that interns example, a recent prevalence study of a representative
constitute approximately 1.3% of the United States sample of the working age population conducted in
labour force, and that around half of all college stu- Australia found that one-third (34%) of respondents
dents report having completed an internship, half aged 18–64 and more than half (58%) of respondents
of which are unpaid, during their studies. In some aged 18–29 reported having undertaken at least one
fields, such as entertainment and politics, nearly all in- episode of unpaid work experience in the previous
ternships are unpaid (Bennett 2011). Frenette (2015, five years (Oliver et al. 2016).
p. 355) has observed of this growth in unpaid work Recent responses to the ‘problem’ of youth em-
that ‘over the last few decades, what began as a pol- ployment have seen an increasing emphasis in gov-
icy (and rhetoric) to facilitate the transition from ernment and tertiary education policy rhetoric and
school to work [has grown] into an unwieldy intern the media on the importance of ‘real world’ and ‘rel-
economy’. evant’ work exposure and experience in improving
A number of studies provide some insights into young people’s employability. Several key features
the prevalence of unpaid work, suggesting that the of the environment in which young people must ne-
practice is widespread and involves a large number of gotiate education to work transitions are believed to
organizations from varied sectors and industries. In be influential in the expansion and encouragement of
Europe, where in 2013 a survey of 27 countries was unpaid work. From the demand side, labour markets
undertaken, 46% of respondents aged 18–35 years in many disciplines have contracted and competition
had undertaken at least one, and often more than one, for entry level jobs has increased, meaning employ-
unpaid traineeship, which was defined as a limited ers can be more selective in their recruitment deci-
period of work experience or training spent in a busi- sions. Closely associated with strong competition for
ness, government body or not-for-profit institution by entry level jobs is the notion of credential inflation
students or young graduates (Directorate-General for (Tomlinson 2008). In the UK for example, it has been
Employment, Social Affairs and Inclusion [DGESAI] estimated that there are 30–40% more graduates than
2013). The report revealed the highest participation jobs needing graduates as measured by skill level
rates in The Netherlands (79%) and Germany (74%) (Felstead et al. 2007) and over a third of new graduates
and the lowest in Slovakia and Lithuania (both 8%). are employed in lower-skill level jobs not requiring a
Of all respondents, 59% reported their most recent degree (Office for National Statistics 2012). This, in
traineeship was unpaid and of the remainder which turn, crowds out lower-skilled and less experienced
were paid, less than half of participants considered the youth from the labour market.
amount earned sufficient to live on (DGESAI 2013). In such an environment, it is hardly surprising that
In their report for the Australian Fair Work Om- job seekers see participation in unpaid work as a
budsman, Stewart and Owens (2013) conducted legitimate and potentially effective means through
small-scale surveys of educators and law and jour- which to stand out from peer job-seekers in a highly
nalism students that revealed significant evidence of competitive labour market, nor that employers will
C 2017 British Academy of Management and John Wiley & Sons Ltd.
Ubiquitous yet Ambiguous 7
use unpaid work placements as a means through experience had a positive impact on their critical and
which to evaluate or trial prospective employees. analytical thinking, improved their knowledge and
However, with ubiquitous participation in unpaid skills in areas related to their study, and helped them
work comes a competitive cycle where a new, nor- appreciate how concepts learned in the classroom
mative benchmark is created. To be competitive, as applied to the real world (Kramer and Usher 2011;
Brown and Hesketh (2004, p. 2) assert in their char- Oliver et al. 2016).
acterization of graduate employability as gaining ‘en- Organizations and managers should be aware, how-
try into the winner’s enclosure’, individuals may feel ever, that some higher education institutions may also
pressured to engage in ever-longer periods of unpaid be adding unpaid, on-job pedagogies to their curric-
work and/or to do this in higher status organiza- ula as an easy route to ‘re-marketing’ a traditional
tions than their peers (Grant-Smith and McDonald academic course with a ‘vocational’ aura that may
2016). make it more attractive to potential students seeking
Another feature of the contemporary youth em- the highest future return for their investment in educa-
ployment landscape that drives unpaid work is a re- tion (Abeysekera 2006). Higher education institutions
duced business investment in training and skill de- also value the opportunities that providing students
velopment. Mitigating against investment in training to their industry partners offers in terms of devel-
(see Hall 2011; Keep and James 2012) are increas- oping business contacts and deepening relationships
ing pressures on firms from shareholders to deliver with industry (Cook et al. 2015). Although fostering
returns, as well as unpredictable global markets. The such relationships may offer mutual benefits for busi-
provision of in-house training, which was at one time ness and higher education institutions, financial pres-
an integral component of entry-level jobs, has signif- sures may lead some higher education institutions to
icantly diminished and the costs of such training and implement work-integrated learning programmes as
development has been shifted to the individual worker an economizing exercise (Reid 2014) or cost-shifting
(Yamada 2002). A related supply-side driver is the measure. For example, savings might be seen where
value placed on internship programmes by employ- courses with substantial unpaid work components
ers. These can stem from a genuine desire to provide can be provided with less instruction from educators
young job-seekers with learning or developmental op- (Burke and Carton 2013), particularly in instances
portunities, as an effective pre-employment screening where participants are required to source and manage
strategy, or to cut labour costs by accessing productive their own placements.
work that would have otherwise been conducted by In addition to undertaking unpaid work as part
paid employees (Kalyuzhny 2012). Businesses there- of their studies some students and graduates cre-
fore experience a range of internal and external in- ate independent unpaid work opportunities by di-
centives, in addition to strong demand from students rectly approaching for-profit companies and offering
and job-seekers, to increase the number and duration to work for free (Harthill 2015). In these cases, be-
of unpaid work placements. cause participants are neither employees nor part of
In response to demands from governments, indus- an educationally focused programme, they are typ-
try and the broader community that graduates be ically self-insured for risks such as professional in-
better prepared for the world of work, universities demnity and occupational health and safety. Since
have incorporated a commitment to educationally these unpaid work arrangements operate outside any
focused unpaid work in their strategic policies and formal reporting regimes, it is difficult to estimate
have in recent years significantly expanded these pro- their prevalence. There is, however, some evidence
grammes. This shift is associated with the perception that such arrangements, although initiated by the job
of educators that such programmes are a legitimate seeker, have the potential to provide immediate (and
pedagogy and powerful way to learn, as well as re- potentially unethical and/or illegal) benefits to the
sponding to pleas from students for employability- employer. For example, concerns have been raised
enhancing work experience (McLennan and Keating where companies bill clients for work produced by un-
2008). Indeed, in general, participants feel that unpaid paid workers (Fink 2013; Grant-Smith and McDonald
work experience has positive benefits. For example, 2016), freeing up professionals to work on other bill-
a high proportion of Canadian and Australian stu- able tasks (Harthill 2014), thus providing significant
dents who participated in unpaid work that was sup- but questionable positive economic outcomes for the
ported by their educational institution believe that the company.
C 2017 British Academy of Management and John Wiley & Sons Ltd.
8 D. Grant-Smith and P. McDonald
C 2017 British Academy of Management and John Wiley & Sons Ltd.
Ubiquitous yet Ambiguous 9
the top firms are located (e.g. Davis 2010; Milburn play a key gatekeeping role in deciding who does
2009; Social Mobility and Child Poverty Commission and does not have access to the opportunities
2014; Sutton Trust 2014; Tholen et al. 2013). Illus- available.
trating this problem was the recent highly publicized Cautions associated with the acknowledged value
case of a New Zealander who claimed he had to live in of unpaid work to business are also being raised in
a tent because he could not afford to rent accommoda- emerging policy. These are based on characteriza-
tion in Geneva while completing an unpaid internship tions of some unpaid work as ‘wage theft’ (Harthill
with the United Nations (ABC News Online 2015). 2015), and as potentially exploitative or unlikely to
Although the stunt was later revealed to be a polit- deliver promised learning and employment outcomes.
ically motivated act designed to draw attention to a Indeed, tensions are evident with respect to corpo-
significant concern, the point remains that the UN’s rate social responsibility in the sense that although
interns, although unpaid, are expected to self-fund in- organizations may discharge their responsibilities by
ternational travel, accommodation and food in one of providing opportunities for young people to develop
the world’s most expensive capital cities. The prob- their skills they may also face significant reputational
lem of equity of access may arise not only in relation risks if accusations of exploitation are made publicly.
to informal, privately organized unpaid work intern- A recent European Union (2013) Council Recom-
ship arrangements but also in what would be defined mendation noted that while quality traineeships of-
as genuine educationally focused placements, in the ten improve labour matching, promote mobility and
sense that students need to be able to afford transport contribute to productivity benefits, there were poten-
costs to access workplaces and additional accommo- tial socio-economic costs associated with traineeships
dation costs if the host employer is not located close when they replaced regular employment. Similar crit-
to where they live (Bennett 2011). icisms have been levelled at unpaid internships with
Concerns around constrained employment oppor- respect to the potential for displacing paid workers
tunities for disadvantaged or marginalized youth be- and eroding the availability of entry level positions.
cause of a lack of access to unpaid work aligns with a In response to these concerns about exploitation, an
related concern regarding the framing of the prac- International Labour Conference (2012) resolution
tice as an individual and rational choice. This is encouraged collective bargaining around the working
problematic because it ignores the wider context in conditions of apprentices and interns.
which individuals’ choices are made and how such Concerns have also been raised regarding the qual-
choices impact the youth employment landscape more ity and unevenness of experience offered by some un-
broadly (Siebert and Wilson 2013). Indeed, the more paid work opportunities (Bennett 2011; Braun 2012;
critical literature argues that policy approaches to Gessner 2015). Swan (2015) argued that the compe-
youth employment have disproportionately focused tition involved in gaining certain internships means
on the qualities of individuals while giving limited that interns may be required to be compliant, under-
recognition to the influences of labour market and take menial work, display enthusiasm and forego gen-
occupational structures and the ways (paid and un- uine on-the-job training. Despite Kalyuzhny’s (2012,
paid) employment opportunities are framed, for ex- p. 152) assertion that ‘interns are not generally part
ample, by social class, gender or ethnicity (Allen et al. of a disadvantaged or underserved class, and are free
2013; Jackson 2014; Moreau and Leathwood 2006; to simply walk away from an arrangement they feel
Schwartz 2013; Yamada 2002). A recent study by is exploitative’, the combination of workplace power
Leonard et al. (2015) demonstrated how unpaid in- dynamics and strong assumptions that participation
terns in a not-for-profit organization in the UK, ra- will always result in benefits means that in practice,
tionalized their participation in unpaid work through unpaid workers may be very reluctant to walk away
a complex mix of class-conscious political motiva- from poor quality placements (Durack 2013) or to
tions, career ambitions and lifestyle aims. In partic- refuse requests made by employers.
ular, they promoted unpaid work in the not-for-profit A European Union (2013) Council Recommenda-
sector as able to deliver desirable social and cul- tion has asserted that significant productivity gains
tural capital and resources, albeit from differentiated are unlikely to result from low-quality traineeships
starting points, through which participants may posi- that have minimal learning content built into them.
tion themselves ahead of their peers (Leonard et al. Sub-standard learning outcomes may also result from
2015). Participation in work, even if unpaid, is not a range of exploitative practices that have been
equally available to all (Davis 2010) and organizations uncovered such as unreasonable workloads (Union
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10 D. Grant-Smith and P. McDonald
of Students in Ireland 2014) and situations where some sources do not decouple the ethics of unpaid
unpaid work participants are asked to undertake un- work from its legal status, the legality of unpaid work,
ethical tasks (Moorman 2004) or engage in risky irrespective of jurisdiction, usually centres on deter-
physical activities that may cause injury without mining whether the arrangement, in effect, constitutes
proper precautions (Perlin 2011). The European sur- an employment relationship.
vey of traineeships revealed 30% of programmes were Unpaid internships fall into what Yamada (2012,
deficient in terms of the conditions of work or the p. 217) has termed ‘a legal void, falling between the
degree of learning content and that those who had legal protections for workers and legal protections
participated in an inferior traineeship were signifi- for students’. The literature focuses primarily on the
cantly less likely to find employment subsequently under-enforcement of extant legal provisions and the
(European Commission 2012). Furthermore, as the inadequacies of employment protection laws (e.g.,
European Commission (2012) has identified, appli- Bennett 2011; Braun 2012; Chrysler 2014; Lorenz
cants for work experience may have difficulty assess- and Thomas 2015; Svacina 2012; Yamada 2002).
ing the quality of placements prior to committing to Here, we briefly review themes relevant to the legality
them due to information asymmetry. This research or otherwise of unpaid work; however, it is important
further suggests that in some organizational con- to note that legal parameters continue to be ambigu-
texts, there is an urgent need for improvement around ous in most jurisdictions, leading to significant uncer-
the planning, supervision and oversight of unpaid tainty for organizations, managers, policymakers and
work. participants alike.
As the above concerns indicate, there are tensions In the USA, the primary mechanism through which
associated with promoting participation in unpaid labour is regulated is the Fair Labor Standards Act
work, whether as a component of a qualification or 1938 (FLSA). Under the FLSA a person who volun-
not. The potential exploitation associated with un- teers to perform services for a public agency with-
paid work is argued to be both subtle (Gregory 1998) out compensation is explicitly excluded from the def-
and hidden. In part, this is a consequence of legal inition of employee and is exempt from minimum
ambiguities associated with protections for unpaid wage and overtime requirements (Rubenstein 2006).
workers, including volunteers, in many jurisdictions There are also statutory exemptions for ‘learners’ and
(Rubinstein 2006). Participants are unlikely to raise ‘apprentices’ (s. 214). However, given these exemp-
concerns for fear their professional reputation may be tions do not extend to students undertaking educa-
compromised or their access to employment opportu- tionally focused unpaid work, including interns, case
nities will be limited (Bennett 2011; Braun 2013; Fink law is left to regulate the distinction between an intern
2013; Grant Bowman and Lipp 2000; Hacker 2016; and an employee (Cameron 2013). The ‘proliferation
Yamada 2002). The challenge for business and poli- of unpaid internships has . . . resulted in litigation
cymakers is therefore to provide young people with against employers that hosted unpaid internship pro-
opportunities for gaining work experience whilst also grams’ (Bergman 2014, p. 557) including the high
safeguarding their employment conditions and pro- profile Black Swan case which patently reflects the
tecting them from exploitation in the early stages of legal risks to organizations which are associated with
their careers. unpaid work that is later deemed to be ‘productive’.
The case saw two unpaid student workers success-
fully receive compensation for their unpaid work on
Regulatory and structural responses the basis that the tasks they were performing in an un-
to unpaid work paid capacity were no different to those being under-
taken in a typical employee relationship (for detailed
The regulatory challenges of unpaid work participa- discussion of this case see Chrysler 2014; Hacker
tion are increasingly being acknowledged by policy- 2016; Jones and Seltzer 2015). Notwithstanding the
makers around the world (e.g. Council of the Euro- reliance on case law, the Department of Labor de-
pean Union 2014; International Labour Organization veloped six criteria for determining whether an indi-
2012; Stewart and Owens 2013). Indeed, of all the de- vidual may be engaged without pay with a for-profit
bates in the unpaid work literature, perhaps the most business. These factors include whether the individual
developed is the legality or otherwise of unpaid in- receives training, the extent to which the experience
ternships in the USA, where unpaid internships are benefits the participant rather than the organization,
prevalent but legally and ethically ambiguous. While whether the participant displaces an employee, and
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Ubiquitous yet Ambiguous 11
whether the participant is automatically entitled to a experience (Cameron and Klopper 2015; Craig and
paid role at the conclusion of the period of unpaid Wilke 2016). Indeed, given that unpaid work par-
work (for a more detailed discussion of these laws ticipants are not true employees and therefore are
see Butterworth 2013; Chrysler 2014; Magalidi and not subject to many of the statutory protections em-
Kolisnyk 2014; Reid 2014). The criteria outlined in ployers are obliged to provide to employees, educa-
Fact Sheet #71 stipulates that if a business derives tion institutions appear to be held to higher account
any immediate advantage from the work of an in- for protecting unpaid work participants and ensur-
tern, the intern should be paid (Lorenz and Thomas ing quality outcomes, than are the organizations in
2015). Thus, according to Bennett (2011), the legal which the unpaid work is undertaken. For example,
theory that underlies this approach, and the central universities may be liable for workplace injuries or
question for employers, is whether an employment other harm incurred during university sanctioned or
relationship exists; that is, whether the experience is supported learning activities, despite that in reality,
largely educational in nature or whether the partici- they often have limited control over what happens
pant is performing tasks for the benefit of the com- to the student at an offsite location (Cameron and
pany. Legislation specifically addressing unpaid in- Klopper 2015; Svacina 2012). Higher education in-
ternships is yet to be developed in the USA (Hacker stitutions are also increasingly expected to instigate
2016). a range of preventative and responsive risk manage-
In Canada, the regulation of internships differs ment measures which ensure student well-being and
based on provincial standards. Provisions similar to protect institutional reputation and potential liabil-
those in the USA exist in labour statutes such as the ity (Batra et al. 2014; Miller et al. 2002; Saunders
Employment Standards Act 2000 (Ontario), which is 2000; Svacina 2012). Such measures include educat-
based around three criteria which require that intern- ing students about their workplace rights; informing
ships must provide training for certain professions; them about risks they may encounter because they
that they meet the conditions required for the intern are not in a formal employment relationship; provid-
to be considered a trainee; and that they form part ing adequate support during periods of unpaid work;
of a programme approved by an education institution appropriately supervising and monitoring workplace
(Smeltzer 2015). These laws extend protections to experiences; and responding to concerns raised
those performing work normally performed by an em- (Gregory 1998; Poe 2010; Svacina 2012). Ensuring
ployee and trained by the employer for the employer’s student well-being also requires screening potential
business (Butterworth 2013). Similar provisions also employers, educating them about their responsibili-
apply under UK law (Stewart and Owens 2013) ties to participants and under the law, and discontin-
where although most unpaid internships are techni- uing partnerships with employers who have repeated
cally illegal, effective monitoring and enforcement complaints made against them. However, concerns
has been identified as problematic (Forkert and Lopes have been raised regarding the extent to which aca-
2015). demic or administrative staff may be willing to take
In Australia, the Fair Work Act 2009 provides that on such roles in a climate in which the needs of the
an individual undertaking a vocational placement or employer and the ongoing relationship between the
unpaid placement as a requirement of an education of employer and the higher education institution may be
training course or government assistance programme valued above other priorities including ‘learning . . .
is not an employee and is therefore not entitled to social equality or the collective good’ (Johnston 2011,
minimum wages (Owens and Stewart 2016). A re- p. 179; Maurer and Ryan Cole 2012).
lated Factsheet further provides that unpaid work ex- Finally, in terms of structural responses to the phe-
perience that is not related to a course of study, may nomenon of unpaid work, there has been a concerted
still be lawful if the person on placement is not do- effort by activist groups to raise awareness of the
ing ‘productive’ work; or where the main benefit of vulnerability of interns and other unpaid workers via
the arrangement is for the person doing the place- social media (Hope and Figiel 2012). Such advocacy
ment; and the person is receiving a meaningful learn- groups include Interns Australia, the Geneva Interns
ing experience, training or skill development (FWO Association, the Canadian Intern Association, and in
2014). the UK, Intern Aware and the Carrot Workers Collec-
Some literature highlights the legal and admin- tive. Another UK-based social enterprise, Internoc-
istrative responsibilities of education institutions racy, works with organizations to structure, design
in relation to the administration of unpaid work and accredit their internship programmes.
C 2017 British Academy of Management and John Wiley & Sons Ltd.
12 D. Grant-Smith and P. McDonald
C 2017 British Academy of Management and John Wiley & Sons Ltd.
Ubiquitous yet Ambiguous 13
C 2017 British Academy of Management and John Wiley & Sons Ltd.
14 D. Grant-Smith and P. McDonald
C 2017 British Academy of Management and John Wiley & Sons Ltd.
Ubiquitous yet Ambiguous 15
review explicated the diverse terminology used to de- with fewer supports, especially where unpaid work
scribe unpaid work; its prevalence and characteristics; is a component of mutual obligation requirements.
the potential value and risks to participants, educa- Meanwhile, as widely discussed in the literature, the
tional institutions and employers; and the legal param- development of appropriate legal safeguards is strug-
eters of the practice. Employers, education providers, gling to keep pace with changes in the practice of
governments and unpaid workers themselves have unpaid work around the world.
all contributed to the expansion of unpaid work. Al- The conceptual framework presented is based on
though empirical evidence of long-term employment the purpose of and level of participatory discretion
outcomes attributable to participation in unpaid work in unpaid work experiences. It goes some way to-
is scant (e.g. Silva et al. 2016) proponents of unpaid wards disentangling the hitherto ambiguous termi-
work highlight the benefits of increased workplace ex- nology around different forms of unpaid work which
posure in enhancing employability through the devel- have tended to focus on the term intern which ‘can be
opment of interpersonal, social and professional skills (and has been) broadly construed to refer to widely
and networks (Gault et al. 2000, 2010; Knouse and varying kinds of pre-employment activity by almost
Fontenot 2008). Critics, however, emphasize a range any kind of job-seeker’ (Durack 2013, p. 247). This
of negative outcomes that may be incurred, includ- lack of definitional clarity ultimately impacts the le-
ing exploitative and unsafe work practices and social gitimacy of some potentially beneficial opportunities
exclusion (e.g. Allen et al. 2013; Burke and Carton while obscuring the potential illegality of others. It is
2013), and the unevenness of unpaid work experi- imperative that the educational integrity of Manda-
ences with respect to the accrual of benefits (Bennett tory Educational and Elective Educational forms of
2011; Braun 2012; Gessner 2015) and challenges to unpaid work be monitored and that focus be placed
access by those who are economically disadvantaged. on ‘advancing educational benefits for students, not
More broadly, unpaid work has been critiqued as be- merely offering opportunities for practice’, particu-
ing a prop for neoliberal market economies where larly where course fees are charged concurrent to
‘capital finds novel ways to offload its responsibil- the unpaid work experience (Maurer and Ryan Cole
ities for a workforce’ (McRobbie 2002, p. 518) in 2012, p. 123). For Mandatory and Elective Produc-
terms of training, development and the organization tive arrangements, unpaid work should centre on the
of work. participant, although genuine volunteering could be
The expansion of unpaid work and its ubiquity may an exception to this because participants’ may de-
also be problematic in the sense that discretionary par- liberately decentre themselves in favour of altruistic
ticipation and choice may be eroded as job seekers are motivations for engaging in unpaid work. Adopted in
co-opted into participation. Critics suggest the expan- practice settings, the framework may help avoid the
sion of unpaid work may act to cheapen all labour by deliberate ‘misclassification’ of workers (Hughes and
applying downward pressure on the wages and oppor- Lagomarsine 2015) and contribute to shared expecta-
tunities of others in the labour market (Siebert and tions about the nature and likely outcomes of unpaid
Wilson 2013; Standing 2011) and create the expecta- work.
tion of unpaid work as an obligatory rite of passage
to paid employment (Discenna 2016).
For organizations and managers, the resource costs
incurred in designing and supervising meaningful and References
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