University placement minimum wage entitlement

Short answer

Generally no. If the placement is a required part of a UK-based higher or further education course, and it does not exceed one year, the student does not qualify for the National Minimum Wage for work done for the employer as part of that course. This is a specific exemption set out in regulation 53 of the National Minimum Wage Regulations 2015.

The legal position

Regulation 53 provides that a person on a higher education course or further education course who, before the course ends, is required as part of that course to attend a period of work experience not exceeding one year does not qualify for the National Minimum Wage in respect of work done for the employer as part of that course.

Three conditions must all be satisfied for the exemption to apply:

1. The work experience must be a required part of the course, not something optional or arranged privately by the student.

2. The course must be a UK-based higher or further education course, as defined in the minimum wage regulations.

3. The placement must not exceed one year.

If all three are met, the placement provider is not legally obliged to pay the minimum wage. The exemption does not stop an employer from choosing to pay the student or to contribute towards expenses; it simply removes the legal obligation to do so.

Where the exemption does not apply

The exemption is narrower than employers sometimes assume, and the following situations would usually fall outside it, meaning the minimum wage may well be due.

The exemption does not cover work that is not related to the course, such as work taken on to help finance studies, or work done during a gap year. If a student is doing ordinary work for the employer that is separate from the required placement, that work can attract the minimum wage.

If the placement exceeds one year, the exemption ceases to apply. Once the period goes beyond twelve months, the exemption is lost and the individual may become entitled to the minimum wage, so the length of the placement matters.

If the placement is voluntary rather than a compulsory requirement of the course, the exemption does not apply. In that case, whether the minimum wage is due turns on ordinary principles, in particular whether the person is a genuine worker under a contract to perform work personally, or is properly a volunteer for a charity or voluntary organisation, or is genuinely only shadowing or observing rather than working.

A person who is of compulsory school age is not entitled to the minimum wage in any event. But someone above compulsory school age who has stayed in education is entitled to the minimum wage unless they are on a required course placement of the kind described above.

Facts that would change the answer

The outcome depends heavily on the detail, so the following points are worth pinning down.

Whether the placement is genuinely compulsory. Check the course documentation and module specification. If the university requires the placement to pass or complete the course, that supports the exemption. If it is an optional sandwich year or elective that a student can complete the course without, its status is less clear and it may not fall within regulation 53.

The exact length. If the placement is scheduled for, or ends up running to, more than one year, the exemption is lost.

Whether the work done matches the placement. If the employer also uses the student for additional, unrelated work outside the required placement, that additional work may attract the minimum wage even though the placement itself does not.

The nature of the arrangement. Even outside the education exemption, an unpaid internship labelled as work experience can still attract the minimum wage if the individual is in reality a worker doing real work with set hours and duties, rather than merely observing.

Practical points

If you are the student, first read the course and placement documents to confirm whether the placement is compulsory and how long it lasts. If it is genuinely a required part of your course and under a year, the employer is within the law in not paying the minimum wage, though many placement providers pay a salary or a stipend voluntarily and it is reasonable to ask.

If you believe the arrangement falls outside the exemption, for example because the placement was optional, has run beyond a year, or you are being used for unrelated work, you can raise it in writing with the employer first. If that does not resolve matters, HMRC enforces the National Minimum Wage and you can report a suspected underpayment to them, or seek help from ACAS. The last resort is an employment tribunal or civil claim for unpaid wages.

If you are the employer, keep clear records showing that the placement is a required part of a defined UK higher or further education course and that it does not exceed one year, so that the basis for relying on the exemption can be evidenced if questioned.

Key point to confirm

The answer turns on three facts: whether the placement is a required part of the course, whether the course is a qualifying UK higher or further education course, and whether the placement is one year or less. If all three hold, no minimum wage is legally due. If any one fails, the minimum wage may be payable and the position should be looked at more closely.