EU moves to end unpaid internships with new directive

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The European Union is taking steps to combat the exploitation of young workers by establishing stricter regulations for internships, including clear provisions for compensation, duration and social protection across member states.

The European Parliament’s Committee on Employment and Social Affairs adopted a report amending EU internship rules by 42 votes in favour, 9 against and 6 abstentions.

The report emphasises that internships should be time-limited and involve entry-level work to facilitate the transition from education to employment.

The new rules aim to cover all internships except mandatory placements that form an integral part of studies or apprenticeships.

This initiative comes in response to longstanding complaints that many companies across the EU use internships as a means of obtaining cheap or unpaid labour.

According to European Commission data, nearly 50% of interns in Europe receive no compensation, while fewer than half have social coverage.

Cyprus is among the countries with increased reports of unpaid internships, especially in the legal, communications and tourism sectors.

For thousands of young people seeking to enter the job market, the new directive promises that internships will no longer be exploitation traps but stepping stones to stable employment.

A written contract will be mandatory under the new proposal, specifying the intern’s compensation, duties, learning objectives, duration and rights.

The maximum duration of an internship is set at six months, and access to social protection must be ensured, including health insurance, pension contributions and unemployment benefits.

MEPs stress that unpaid internships without educational character or without guidance and evaluation amount to abusive employment practices.

Consequently, they have introduced specific safeguards providing that when an intern undertakes multiple or successive internships with the same employer, it will be considered a sign of irregularity.

To ensure compliance with the new rules, companies will be required to provide, upon request, information about the number and duration of internships, conditions and compensation.

Anonymous reporting mechanisms will also be established, allowing interns to report poor practices without fear of retaliation. Each organisation must also designate a responsible person whom young people can approach for guidance and support.

The Employment and Social Affairs Committee voted to begin interinstitutional negotiations, with 41 votes in favour, 14 against and one abstention.

If no objections are raised at the upcoming European Parliament plenary session, talks with the Council on the final form of the directive can begin.

Youth unemployment remains a persistent problem in the European Union, with unemployment rates for those under 25 more than double compared to the general population. In this context, quality internships are considered an important tool for integrating young people into the labour market.

However, in many cases, internships are of low quality, unpaid or minimally paid, without access to social protection and with inadequate educational content. There are also social barriers leading to unequal access to such opportunities.

Although internships fall under the competence of member states, the EU established a common framework of standards in 2014 to promote quality placements.

The European Commission evaluated the implementation of these rules in 2022, noting progress towards improving conditions but also the need for further action to address problematic and illegal practices that continue to occur.

According to European Commission estimates based on the European Labour Force Survey, approximately 3.1 million interns were recorded in the EU in 2019, of whom 1.6 million participated in paid internships.

However, according to the European Court of Auditors’ 2024 Report, there are no official consolidated statistics on the number of internships in the EU. This is due to the significant differences in national legislative frameworks, with 16 member states still not having established a legal definition of internships.

The Court of Auditors estimates that approximately 3.7 million young people in the EU begin internships each year and emphasises that for systematic data collection at the EU level, member states must first agree on a common definition.

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