Do You Get Paid For Work Experience In Australia?

Taking on a student or early-career candidate for “work experience” can be a great way to build your talent pipeline, support your community and test future hires in a low‑risk setting.

But the big legal question for employers is simple: do you have to pay them?

In Australia, the answer depends on the type of arrangement you put in place and what the person actually does for you day to day. Get it wrong, and you could be liable for back pay, penalties and reputational damage. Get it right, and you’ll have a compliant, structured program that genuinely benefits both sides.

Below, we break down when work experience can be unpaid, when it must be paid, how Victoria’s token payments fit in, and the documents and processes that help you stay compliant from day one.

What Counts As “Work Experience” Under Australian Law?

“Work experience” isn’t a single legal category. It’s a plain-English label for a few different arrangements, each with different rules.

Vocational Placements (Usually Unpaid)

A vocational placement is a placement undertaken as a requirement of an education or training course, and which is approved by the course provider. Under the Fair Work Act, genuine vocational placements are not considered “employment”, so they can lawfully be unpaid.

Key features usually include a formal agreement with a school, TAFE or university, learning objectives, and structured supervision. The focus is educational, not on productive work.

Internships (Can Be Paid Or Unpaid)

“Internship” is a broad term. If the internship is part of an approved course (i.e. a vocational placement), it can be unpaid. If it’s not tied to a course, it will be lawful only if there’s no employment relationship. In practice, if the intern is doing work that benefits your business (rather than primarily observing and learning), an employment relationship likely exists - which means you should pay at least minimum entitlements.

Volunteering (Unpaid)

Volunteering is lawful and unpaid where a person genuinely chooses to donate their time to a not‑for‑profit or community organisation, with no expectation of pay. For a for‑profit business, it’s rare that “volunteering” is appropriate - if the person is doing work that helps your business, they’re likely an employee and must be paid.

Unpaid Trials (Strictly Limited)

Short, unpaid skill demonstrations may be okay if the person only performs the tasks necessary to prove they can do the job, for the shortest practical time, and under close supervision. If the person is doing productive work or the trial lasts longer than strictly necessary, it should be paid. For more guidance, see our detailed overview of unpaid trials and trial shift pay.

Do You Have To Pay For Work Experience?

The central test is whether an employment relationship exists.

If the person is an employee (or in some cases an independent contractor), you must pay them at least the applicable minimum wage and any award entitlements, plus superannuation where required.

Whether an employment relationship exists is assessed case by case, but common indicators include:

• The person is doing productive work that your business relies on.
• You set hours, deadlines and performance expectations.
• The person contributes to output that would otherwise be done by paid staff.
• The arrangement extends for weeks or months with ongoing responsibilities.
• There’s little to no structured training or educational oversight.

If those indicators are present, treat the person as a paid employee with the correct Employment Contract, onboarding and entitlements.

Unpaid arrangements are lawful in narrow situations - primarily genuine vocational placements and very short skill demonstrations - but you should document the purpose, structure and supervision carefully to avoid drifting into “unpaid work” that is actually employment.

What About Victoria’s Work Experience Payments?

Some state and territory school programs set token or nominal payments for secondary school work experience students placed in businesses. In Victoria, school work experience arrangements are administered through the Department of Education and typically prescribe a small daily payment to the student’s host employer (subject to exemptions).

These are not “wages” in the employment sense, but you still have to follow the program’s paperwork and safety requirements. Always check the current Victorian program guidelines before a placement begins, as the prescribed rate and forms can change.

Importantly, these token payments only apply to approved school work experience programs. If the person is doing productive work outside of a formal program, normal minimum pay rules apply.

How To Host Work Experience Legally And Safely

Once you’re clear on whether the arrangement will be paid or unpaid, set it up with a clear plan. Here’s a practical checklist you can adapt to your business.

1) Define The Purpose And Scope

Be explicit about the learning objectives, tasks, supervision and duration. If it’s unpaid, make sure the purpose is educational and the tasks are observational or training‑based, not productive work. If it’s productive work, plan to pay the person in line with your award or agreement.

2) Choose The Right Arrangement

• Vocational placement (unpaid): must be required by the course and approved.
• Paid internship or entry‑level role: treat as employment and pay entitlements.
• Short skill trial: limit to the minimum necessary and supervise closely.

If you’re unsure which option fits, it’s a good idea to speak with an employment lawyer before you commit.

3) Put The Right Documents In Place

Use the appropriate agreement and policies from the outset (we list these below). Even for unpaid student placements, written terms help manage expectations and demonstrate the educational focus.

4) Induct And Supervise

Provide a proper induction, including safety procedures, confidentiality and technology use. Assign a supervisor responsible for training and feedback. For unpaid arrangements, keep a record of training content and time spent observing vs doing.

5) Manage Privacy And Confidentiality

If the person will access customer data or internal systems, ensure you have a current Privacy Policy and obtain appropriate consents. Use a simple Non‑Disclosure Agreement if they may see confidential information.

6) Consider Insurance And Safety

Check whether the education provider covers personal accident insurance for students on placement. Either way, your WHS duties still apply. Make sure your risk assessments, training, PPE and site rules are up to date.

7) Pay Correctly If Required

If the person is an employee, pay the right rate and keep compliant records. If the arrangement shifts from observational to productive work, switch to a paid status promptly - don’t let an unpaid “internship” slowly morph into unpaid employment.

8) Close Out The Placement

Provide feedback, collect any property and disable IT access. For student placements, sign any completion forms for the school or university.

What Documents Should You Put In Place?

The right paperwork protects your business and clarifies expectations for the participant. Most employers will use a combination of the following.

• Internship Agreement: If you’re hosting a non‑employee intern for learning and observation, a tailored Internship Agreement sets out the educational focus, supervision, duration, confidentiality and IP ownership.
• Employment Contract: If the person is doing productive work, issue the correct Employment Contract (full‑time/part‑time) or a casual contract. This confirms pay, hours, duties, confidentiality and termination terms.
• Volunteer Agreement: For genuine volunteering in a not‑for‑profit context, a simple Volunteer Agreement outlines duties, safety and conduct without creating employment.
• Workplace Policies: Ensure your Workplace Policy suite covers safety, conduct, bullying/harassment, IT and confidentiality, and make sure work experience participants receive and acknowledge them.
• Privacy Policy: If you collect any personal information during onboarding or the placement, keep your Privacy Policy current and accessible.
• Non‑Disclosure Agreement (NDA): Use an NDA if the person will access confidential information, prototypes or client data.

Not every business will need every document, but most employers hosting work experience will use at least one agreement plus core policies. The key is matching the document to the true nature of the arrangement.

Common Scenarios: Unpaid Trials, Student Placements And Paid Internships

Scenario 1: A One‑Shift “Trial” In Hospitality Or Retail

You ask a candidate to come in for a trial shift to see if they can handle the role. If they’re shadowing for a short period and not doing productive work, an unpaid skills demonstration may be okay. If they’re serving customers, handling the till or otherwise contributing to your operations, you should pay them for the time. For specifics, refer to trial shift rules and your applicable award. Our guide to trial shift pay covers common pitfalls.

Scenario 2: A Two‑Week University Placement

The student’s course requires a two‑week placement approved by their university. That’s a vocational placement and may be unpaid, provided it’s genuinely educational. Put in place an Internship Agreement (and the university’s paperwork), define learning goals and ensure close supervision. Avoid relying on the student for core business output.

Scenario 3: A Three‑Month “Internship” In A Startup

If the intern will write code, manage social media or help with sales, they’ll likely be doing productive work. Treat them as an employee and issue an Employment Contract. If you plan a short initial assessment period, ensure any skill demonstration is brief and then convert to paid status. Don’t rely on a long unpaid “internship” to fill a role.

Scenario 4: Work Experience For Victorian School Students

When you host a Victorian secondary school student under a school‑approved work experience program, you’ll typically pay a small daily token amount as prescribed by the program, complete the department’s forms and follow their safety guidance. Keep the focus on observation and learning. If the student starts doing productive work outside the program’s scope, pay must align with standard employment rules.

Scenario 5: Training Courses And Inductions

When you require staff to complete training that’s necessary for them to do their job (e.g. POS systems, mandatory certifications), that time is generally treated as work and should be paid. Our overview of paid training explains employer obligations and common exceptions.

Avoiding Compliance Risks: Practical Tips For Employers

Most compliance issues arise when a well‑intentioned “learning experience” drifts into unpaid work that looks like ordinary employment. These quick tips will help you stay on the right side of the line.

• Keep unpaid arrangements short, structured and educational - track activities and hours.
• Don’t use “interns” to backfill staff shortages or deliver billable work.
• Switch to paid status quickly if tasks turn productive or ongoing.
• Use clear documentation - an Internship Agreement or the right Employment Contract - and ensure policies are acknowledged.
• Cover privacy and confidentiality with an NDA and a current Privacy Policy if personal data is involved.
• In Victoria, follow the school program’s forms and token payment rules for secondary school work experience.
• When in doubt, err on the side of paying - it’s safer and supports fair opportunities.

Key Takeaways

• Whether you must pay for work experience depends on the legal nature of the arrangement and the work performed - productive work usually equals employment and requires pay.
• Genuine vocational placements tied to an approved course can be unpaid; unpaid trials must be very short and strictly for skill demonstration under supervision.
• Victoria’s school work experience program typically requires a small daily token payment and specific paperwork - check current program rules before hosting.
• If the person is doing regular, productive work for your business, issue the right Employment Contract and pay minimum entitlements.
• Protect your business with tailored documents such as an Internship Agreement, Workplace Policies, an NDA and a current Privacy Policy.
• Document the purpose, supervision and tasks for any unpaid arrangement and be ready to switch to paid status if it drifts into productive work.

If you’d like a consultation on setting up compliant work experience, internships or trial shifts in your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.