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VOLUNTEERING AND UNPAID WORK PLACEMENTS AMONG CHILDREN AND YOUNG PEOPLE IN NSW

			COMMITTEE ON CHILDREN AND YOUNG PEOPLE
  

	Cn CPT 4-UNPAID WORK PLACEMENTS - INCREASING PREVALENCE OF UNPAID WORK

C4	Chapter Four - Unpaid Work Placements

	m	Introduction

	n	The increasing prevalence of unpaid work in the Australian workforce
		THIS PAGE

THE INCREASING PREVALENCE OF UNPAID WORK IN THE AUSTRALIAN WORKFORCE 

4.2	The Fair Work Ombudsman’s (FWO)" report, Experience or Exploitation: The 
	nature, prevalence and regulation of unpaid work experience, internships and trial 
	periods in Australia, found that it is difficult to quantify the actual number of 
	workers undertaking unpaid work. 

	However, despite the lack of reliable statistics, there is reason to believe that 
	unpaid work is becoming more common in Australia, and without proper regulation 
	this trend can be expected to continue, as evidenced in other jurisdictions such 
	as the USA 51: 

		While definitive conclusions cannot be drawn in the absence of reliable 
		statistics, the available evidence … indicates that unpaid work exists on 
		a scale substantial enough to warrant attention as a serious legal, practical 
		and policy challenge in Australia. 

		The report concludes that significant numbers of workers, especially younger 
		workers, are asked to undertake unpaid trials. 

		This conclusion is supported by recent research and studies by others, including 
		the YWLS [Young Workers Legal Service, South Australia] survey, anecdotal 
		reports from individuals made in response to publicity about this project, 
		information from FWO’s investigative files and also reported cases. 

		The indications from the available evidence are that while unpaid trials may be 
		more common in some industries – such as hair and beauty, retail and hospitality – 
		they are in fact to be found across a wide range of industries 52 
		

4.3	The FWO Report states that unpaid internships have been a growth area in both 
	Australia and internationally. 

	The FWO Report notes growing concern about the practice of employers having p
	rospective employees undertake unpaid trials and performing work that would ordinarily 
	be done by paid employees while the employer determines their suitability 53

4.4	Unions NSW submitted that there is very little concrete data available about how 
	many young people are undertaking unpaid work, what organisations are 
	engaging them and what kind of work they are doing. 

	However, Unions NSW stated that it had heard a great deal of anecdotal evidence 
	that unpaid work is becoming a common experience for young people 54

4.5	Professor Andrew Stewart and Professor Rosemary Owens, authors of the FWO Report,
	submitted that without proper regulation, unpaid work can become part 
	of an ‘informal economy’, leading to social exclusion for people who do not have 
	the financial means to support themselves while undertaking lengthy periods of 
	unpaid work 55



51 A Stewart & R Owens, 2013,  report, Experience or Exploitation: The nature, prevalence and regulation of unpaid work 
experience, internships and trial periods in Australia – Report for the Fair Work Ombudsman, pp. xi-xxv. 

52 A Stewart & R Owens, 2013,  report, Experience or Exploitation: The nature, prevalence and regulation of unpaid work 
experience, internships and trial periods in Australia – Report for the Fair Work Ombudsman, pp. xi-xii. 

53 A Stewart & R Owens, 2013,  report, Experience or Exploitation: The nature, prevalence and regulation of unpaid work 
experience, internships and trial periods in Australia – Report for the Fair Work Ombudsman, p. 31. 

54 Submission no 14, Unions NSW, p. 6. 

55 A Stewart & R Owens, Responses to additional questions, 20 October 2014, p. 4. 

56 Fair Work Ombudsman website, viewed 7 November 2014: . 

57 Submission no 14, Unions NSW, pp. 6-7. 


	o	What constitues legitimate unpaid work?

	p	Impacts of Unethical and Unlawful Unpaid Work Placements on young people and the 
		wider workforce
		1	Committee Comment - Recommendation 7
		2	Committee Comment - Recommendation 8

	q	Review of the prevalence and impacts of unpaid work placements on young people
		1	Committee Comment - Recommendation 9




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