You’re lying on the couch.

A rerun’s playing in the background. You’re scrolling LinkedIn when you see someone’s post: “It’s time we stop exploiting unpaid interns.”

You pause.

Your stomach sinks.

Because you have one.

And… yeah. They’re unpaid.

You called it a “volunteer internship.” They started last week.

Now you’re Googling employment standards, trying to understand if you’ve accidentally broken the law — or just toeing a very grey line.

Welcome to the club. Every small business owner has been here at least once.

The “We Called Them a Volunteer” Defense

Let’s get something clear right out of the gate:

What you call them doesn’t matter.

“Intern,” “volunteer,” “apprentice,” “student helper” — none of those titles change the legal test.

If the person is doing real work, during set hours, under your direction, and they’re not part of a formal school program?

There’s a good chance you’ve just created a job… and forgotten to pay for it.

That “volunteer” label?

It’s the HR equivalent of calling a raccoon a cat because you like it better. Doesn’t hold up.

When an Intern Is Actually an Employee

Here’s the ugly truth: most unpaid internships in Canada are illegal.

The exceptions are narrow. Usually, the person must be:

• Enrolled in a school program with a formal work placement
• Earning academic credit
• Doing work tied directly to a learning objective — not just “helping out”
• Operating under clear documentation between the school, the employer, and the student

And even then? You still need to follow certain rules.

If your intern isn’t in that bucket, and they’re:

• Doing productive work
• Taking direction from you or your team
• Helping with deliverables
• Working a regular schedule

…you’re likely on the hook for minimum wage, vacation pay, and all the other protections that come with being a regular employee.

Even if they were thrilled to come work for you for free.

“Free Labour” Isn’t Free

Unpaid internships might seem like a clever solution when you’re short on budget and long on projects. But the second it crosses into “employment” territory, you’re gambling with real money.

If the intern complains — or just casually mentions their role to someone who knows the rules — you could face:

• Orders to pay back wages (sometimes months’ worth)
• Fines or penalties from Employment Standards
• A very public shaming online
• And once the door’s open, audits that dig much deeper than you were ready for

This happens more than you think.

And interns? They talk. They text. They post screenshots.

Do It Right — or Don’t Do It At All

The good news: you’ve got options.

• You can pay them. A modest wage + structured mentorship makes you a hero in a world full of exploiters.
• You can work through accredited schools with formal co-op or internship programs — just make sure all the paperwork is in place.
• You can offer short-term shadowing (pure observation, no real work), if you’re not looking for deliverables.
• And whatever you do, document it: letter of agreement, learning objectives, supervision expectations. Don’t wing it.

Interns can be amazing — smart, curious, motivated.

But if they’re working, they’re workers. And the labour board won’t care how tight your budget is when they come knocking.

RascalHR Helps You Get It Right From Day One

We don’t judge. We don’t lecture. We don’t forward your name to the ministry.

We just fix it.

Our employment agreements, compliance checklists, and contract templates are built for Canadian employers. We ask the right questions, write the right docs, and make sure you don’t get bit by what you didn’t know.

If you’ve got that Sunday night feeling that something’s not quite right… you’re probably right.

Let’s fix it before someone else decides to.

Get compliant now →