A startup in Gurugram takes on six “interns” for a year, pays nothing, gives them customer support targets, and is surprised when one of them files a wage complaint. A college in Noida refuses to give a student credit because the company’s letter does not state hours or a supervisor. A design intern builds a logo that the company then uses on every product, and nobody has a document saying who owns it. Internships are one of the best ways to start a career and one of the easiest arrangements to get wrong. This page explains what an internship agreement should say, for the organisation, for the intern, and for the college in between.
An internship is a period of supervised work whose main purpose is learning. The intern gets exposure to a real workplace, practical skills, a reference and often academic credit; the organisation gets a fresh pair of hands, a way to spot future employees, and in some cases fulfils its own training commitments. Both sides benefit, but the balance matters: the more the arrangement serves the organisation’s ordinary staffing needs, and the less it serves the intern’s learning, the less it looks like an internship.
In India there is no single law that defines an internship. The word covers:
Because no statute supplies a default structure, the agreement between the organisation and the intern — supplemented by the college’s requirements where the internship is part of a course — is what defines the arrangement. It should answer the questions that otherwise cause trouble: what the intern will do, for how long, under whose guidance, for what payment, and what happens to the work produced.
The agreement also protects the organisation from the two risks internships carry: that an intern turns out, in law, to have been an employee, and that valuable work or information walks out of the door with the intern at the end.
The same person may be called an intern, trainee, apprentice or probationer in different organisations. The label matters less than what the arrangement actually is.
| Intern | Apprentice | Trainee employee | Employee | |
|---|---|---|---|---|
| Governing law | The agreement and general law | Apprentices Act, 1961 | Employment and labour law | Employment and labour law |
| Main purpose | Learning | Structured training in a trade | Training for a job already given | Doing the job |
| Payment | Stipend, if any | At least the prescribed stipend | Wages | Wages |
| Duration | Short, fixed | As prescribed for the trade | Probation or training period | Ongoing |
| Labour law benefits | Generally not, if genuine | Not a worker under the Act | Yes | Yes |
The question whether a particular intern is in truth an employee is decided on the facts. Factors that point towards employment include:
India’s labour codes, brought into force in November 2025, define employees and workers broadly. An organisation whose interns are in substance employees may owe them wages at least at the minimum rate, and statutory benefits. The safest course is either to run a genuine internship, or to hire the person as a fixed-term employee under an employment contract; our employment agreement guide covers that route.
Unpaid internships are widespread in India, particularly in media, law, NGOs, design and startups. They are not unlawful as such, and many students accept them willingly for the experience or because their course requires an internship. But they carry risk for organisations and raise fairness questions that good employers take seriously.
When unpaid is defensible. Short internships that are part of an academic programme, where the intern mainly observes, shadows, assists and learns, with genuine supervision, and where the organisation gets little productive work in return.
When it is risky. Long internships in which the intern does productive work that the organisation would otherwise pay for — handling customer calls, producing content for publication, writing code for release, doing sales. In those cases, the intern may be an employee in law, whatever the agreement says, and wage laws may apply.
Practical middle ground. Many organisations pay a modest stipend and reimburse travel and meals, set a limited duration, and structure the work around projects with learning goals and feedback. That treats interns fairly, improves the quality of applicants, and reduces legal risk.
Two further points. First, if an intern is unpaid, the organisation should be careful not to impose employee-style obligations — long notice periods, penalties for leaving, bonds — that are unfair in an arrangement without pay. Second, even unpaid interns are protected by laws that apply to all workers or trainees, such as the POSH Act, and the organisation owes them a safe workplace.
Where a job is really on offer, a fixed-term employment contract with a proper salary is cleaner than a long “internship”.
Apprenticeship is the one training arrangement Indian law regulates in detail. Under the Apprentices Act, 1961, an employer engages an apprentice under a contract of apprenticeship for training in a designated trade, or in an optional trade the employer chooses, for the period the rules prescribe. The contract is registered through the Government’s apprenticeship system, and the employer must pay at least the minimum stipend the rules prescribe, which varies with the apprentice’s qualification.
Key features of an apprenticeship:
An organisation that wants the certainty of the Apprentices Act should follow it fully — registration, curriculum, stipend — rather than call a trainee an “apprentice” without doing so. An arrangement described as an apprenticeship that does not comply with the Act will be judged like any other internship or employment.
The details of designated trades, stipend rates and schemes are revised from time to time; check the current rules on the Government’s apprenticeship portal before engaging apprentices.
Under the National Education Policy, universities and technical institutions have built internships into degree programmes, often with academic credit attached. Regulators including the University Grants Commission and the All India Council for Technical Education have issued guidelines for internships and research internships, and many universities have made internships compulsory for graduation in some courses.
For the student, this means the internship has to be documented in a way the college accepts. Colleges commonly require:
Some colleges use a tripartite arrangement, in which the college, the organisation and the student each sign, with the college appointing a faculty mentor alongside the organisation’s supervisor.
For organisations, meeting these requirements is a small effort that makes the organisation more attractive to good students. The internship agreement can simply include the college’s formats as schedules. Where the college needs a letter from the student’s own institution, such as a bonafide certificate, our bonafide certificate service helps.
Law students are required by the Bar Council of India’s rules of legal education to complete internships during their degree, with minimum total durations for the three-year and five-year programmes, and conditions about where and how long each internship may be. Internships may be with advocates, law firms, courts, legal aid authorities, corporate legal departments, NGOs and other bodies the rules recognise.
For advocates and firms taking law interns, a written internship letter should state:
Advocates are bound by professional rules, including on confidentiality and soliciting work, and interns working with them should be briefed accordingly. Internships through organisations that are not law firms — legal service providers, companies, platforms — should be clear that the intern is not practising law.
Our own internship programme for law students is described on our internships page, which explains how we keep within the rules on duration and supervision.
Get an internship agreement colleges accept
Research internships with universities, laboratories and research institutes differ from corporate internships. The intern is usually a student working under a faculty member or scientist on a defined research question, sometimes for credit, sometimes for a fellowship, and often with a view to further study.
Points the agreement or offer letter should settle:
Where industry sponsors a research project, the sponsor’s agreement with the institution may govern intellectual property, and the intern’s terms must fit within it.
NGOs. Non-profit organisations take many interns, often unpaid, for field work, research, communications and fundraising. The same principles apply: a learning plan, a supervisor, limited duration, and a certificate. Two points deserve special care. Field work in villages, shelters or disaster areas needs a safety plan, insurance where possible, and supervision; and work with children or vulnerable adults requires safeguarding rules and, often, background checks. Interns should not be used for fundraising from their own contacts, or asked to pay towards programme costs.
Volunteer or intern. Some NGOs call interns volunteers. The distinction matters little legally, but a volunteer agreement that sets expectations, confidentiality and safety is as useful as an internship agreement.
Government internships. Many ministries, departments, courts, commissions and public bodies run internship schemes with their own eligibility, application windows, stipends and rules. Their terms are set by the scheme, not by negotiation, and interns sign the body’s own undertaking, usually including strict confidentiality and restrictions on public comment. Students applying should read the scheme notification carefully, particularly any rule against applying to the same scheme twice or holding another internship at the same time.
Political offices and campaigns. Internships with elected representatives and parties are common. Interns should understand whose employee they are, if anyone’s, and what they may say publicly.
Many organisations issue interns only an offer letter. For short, simple internships that can be enough, provided the letter covers the essential terms. For longer internships, paid internships, internships involving sensitive information or valuable creative work, and any internship with a minor, a fuller agreement is better.
A practical structure used by many organisations has three documents:
For organisations with many interns, a standard agreement with a short individual schedule for each intern — name, dates, supervisor, stipend, projects — keeps the documentation consistent.
Signing can be electronic. The agreement should be signed before the internship starts; documents signed on the last day, when the work has already been done, are less effective, especially for assignment of intellectual property.
The clause that best distinguishes an internship from a job is the learning plan. It need not be elaborate, but it should exist.
A useful learning plan states:
A supervisor who has no time for the intern turns an internship into unpaid labour, and the intern learns little. Organisations should limit the number of interns per supervisor to what the supervisor can genuinely guide.
The learning plan also protects the organisation. If an intern later claims to have been an employee, a documented plan of training and feedback, actually followed, is strong evidence that the arrangement was what it said it was.
For interns, the learning plan is also what goes on a CV and into the college report. An internship that has clear objectives and a named mentor is worth more than one that consisted of “assisting the team”.
Duration. The start and end dates should be fixed. Extensions should be agreed in writing, with the reason. Rolling or indefinitely extended internships are the clearest sign of disguised employment.
Hours. The agreement should state normal working hours and days, and whether evening or weekend work may be required. Interns should not be expected to work longer hours than regular staff. For students attending classes, part-time internships should fit around the timetable.
Place. The office address, or for field work, where the intern will go. Site visits and travel should be with supervision and at the organisation’s cost.
Equipment. Whether the organisation provides a laptop, access card, email account and software, and the intern’s duty to return them.
Shops and establishments rules. Where an organisation is covered by the Delhi shops and establishments law or similar State laws, working hours, rest intervals and holidays for persons working there should be consistent with it; for genuine interns, the agreement should in any case provide reasonable hours and rest.
Night work and safety. Where interns, particularly women interns, work late, the organisation should arrange safe transport home, as many organisations do for employees.
Remote internships became common in recent years and remain popular with students in smaller towns, who can work with organisations in Delhi or Bengaluru without moving. They need slightly different terms.
Remote internships are particularly prone to becoming either a free labour arrangement — tasks sent by email with little guidance — or an empty certificate with little work. A defined project with deliverables and scheduled feedback avoids both.
Certificates for remote internships should say that the internship was remote; colleges and future employers value accuracy more than impressive wording.
Stipend. Where paid, the stipend should be stated as a monthly amount, with the payment date and method. Part-months should be pro-rated. If a stipend depends on attendance or performance, the rule should be stated in advance.
Expenses. Travel for work, meals during field work, and any purchases the intern is asked to make should be reimbursed against receipts. Some organisations also pay a fixed travel or data allowance.
No deductions or deposits. Interns should not be asked to pay a deposit, a training fee or a bond. Requiring payment from an intern for the privilege of working is both unfair and a warning sign for students.
Tax. A stipend is generally taxable income of the intern, while a scholarship granted to meet the cost of education has been exempt. How the organisation deducts tax on the payment, if at all, depends on whether the relationship is treated as employment or as payment for services, and on the amount. For most student interns the stipend falls below the taxable limit, but organisations should still record payments properly. The Income-tax Act was re-enacted from April 2026 with new section numbers; ask a chartered accountant.
Statutory contributions. Genuine interns are not usually enrolled in provident fund or state insurance schemes. Where an intern is in substance an employee, the position may be different; that is another reason to keep internships genuine.
Interns are usually students, and the agreement should reflect that.
Where the college requires a minimum number of weeks or hours, the agreement should say how missed days are made up, so that the certificate reflects what the college needs. A certificate that overstates attendance helps nobody and can create problems for the organisation if the college checks.
Interns write code, design logos, draft articles, take photographs, build spreadsheets and prepare research. Much of it is used by the organisation afterwards. Many organisations assume they own it automatically. In India, that assumption is not safe.
Under the Copyright Act, the author of a work is its first owner, subject to exceptions. One exception gives the employer ownership of a work made by an employee in the course of employment under a contract of service. An intern who is not an employee under a contract of service may fall outside that exception, so the intern may own the copyright in what they create unless it has been assigned in writing. An assignment of copyright must be in writing, signed, and should identify the work, the rights, the duration and the territory, or it is read narrowly.
The internship agreement should therefore contain:
For inventions and software, where patents or significant commercial value may follow, the assignment is particularly important. Our employment agreement guide discusses intellectual property clauses for employees, and the same care applies to interns.
If the organisation uses work created by an intern before an assignment was signed, it should obtain a written assignment covering that work as soon as possible, preferably before the intern leaves.
Interns often see more than organisations realise: client lists, pricing, product plans, source code, financial information, and personal data of customers or employees. A short internship does not reduce the damage a leak can cause.
Confidentiality. The agreement should define confidential information broadly but sensibly, require the intern to use it only for the internship, forbid copying or removing it, and continue after the internship ends. The usual exceptions apply — information already public, or required to be disclosed by law. For internships in sensitive areas, a separate confidentiality undertaking can be signed; our confidentiality agreement and non-disclosure agreement services draft these.
Personal data. Where interns handle personal data of customers, patients, students or employees, the organisation is responsible under the Digital Personal Data Protection Act for how that data is processed and protected. Interns should receive only the access they need, be briefed on data handling, and have their access removed on the last day. Our DPDP guide explains the organisation’s duties.
The intern’s own data. The organisation also collects the intern’s identity documents, college details, bank account and sometimes parents’ contacts. These should be kept securely and deleted after a reasonable period once the internship records are no longer needed.
Social media. Many interns post about their internships. A short rule — no sharing of confidential information, client names or internal photographs without permission, while allowing general posts about the experience — avoids embarrassment on both sides.
Return of material. On the last day, the intern returns equipment, deletes organisation files from personal devices, and the organisation revokes access to email and systems.
A few sectors carry risks that an internship agreement should address specifically.
Healthcare. Interns in hospitals, clinics and health startups may see patients’ records. Medical confidentiality is strict, and interns who are not registered practitioners must not diagnose, prescribe or treat. The agreement should limit clinical exposure to observation and supervised assistance, and require confidentiality of all patient information.
Finance and investments. Interns in broking, investment and advisory firms may encounter price-sensitive information about listed companies. The securities regulator’s insider trading rules can apply to anyone in possession of such information, and firms should put interns under the same trading restrictions and confidentiality as staff.
Technology. Access to production systems, customer data and source code should be limited to what the project needs, with separate test environments where possible, and code contributions covered by the IP assignment. Open-source contributions made on the organisation’s time should follow its policy.
Media and publishing. Articles, photographs and videos by interns raise questions of byline, ownership and liability. The agreement should say whether interns receive bylines, that editorial control rests with the organisation, and that the organisation is responsible for what it publishes after its own review.
Law. Interns in legal practice must not give advice or appear in their own name, and are bound by the advocate’s duty of confidentiality; see the section on law student internships above.
Conduct. Interns are usually expected to follow the organisation’s policies on attendance, dress, use of systems and behaviour. The agreement should refer to those policies and attach or link them, rather than assume the intern knows them. Our HR policy drafting service prepares policies that can be shared with interns and staff alike.
POSH. The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act defines “employee” to include persons employed on a regular, temporary, ad hoc or daily wage basis, directly or through an agent, with or without remuneration, including trainees, apprentices and others. Women interns are therefore protected, and the Internal Committee has jurisdiction over complaints involving them. Every intern should be told on the first day where the policy is, who is on the committee, and how to complain. Our POSH policy guide explains coverage, and our POSH policy service sets up the policy and committee.
Power imbalance. Interns are young, temporary, and dependent on a good certificate and reference. That makes them vulnerable to exploitation and reluctant to complain. Organisations should make it easy to raise concerns with someone other than the direct supervisor.
Safety. Interns doing field work, visiting factories or sites, or working late should receive safety briefings, protective equipment where needed, and safe transport. The organisation owes interns the same duty of care as it owes anyone on its premises.
Discipline. For misconduct, the agreement should allow a warning and, for serious misconduct, termination. Because interns are not usually covered by the formal disciplinary procedures that apply to employees, a short fair process — telling the intern what is alleged and hearing their side — is still good practice.
Organisations increasingly offer short internships or work-shadowing to school students in the eleventh and twelfth classes, and schools encourage them. They need extra care.
Child labour law. The Child and Adolescent Labour (Prohibition and Regulation) Act prohibits the employment of children below fourteen years in most occupations and processes, subject to limited exceptions such as helping in a family enterprise outside school hours, and prohibits employing adolescents between fourteen and eighteen in hazardous occupations and processes listed in the Act. A genuine short educational placement is different from employment, but it must not involve prohibited work, and organisations should be able to show that it was educational.
Consent. A minor cannot enter a binding contract, so the agreement should be signed by a parent or guardian, who consents to the placement, its hours and any travel.
Hours and supervision. Short hours, daytime only, never alone with an adult staff member in a closed setting, and a named supervisor responsible for the student’s welfare.
Safeguarding. Staff working with minors should be briefed on appropriate conduct, and the organisation should have a way for the student or parents to raise concerns. Where the organisation’s work involves content, premises or activities unsuitable for minors, it should not take minor interns at all.
Payment. A small stipend or certificate is common. Payment should be to the guardian’s or student’s account with the guardian’s knowledge.
Data. Personal data of children receives heightened protection under data protection law, including verifiable parental consent for processing; organisations should collect only what they need.
International students increasingly intern with Indian organisations, and Indian organisations with global links host them. Before issuing an offer, the organisation should consider the visa. A foreign national cannot simply arrive on a tourist visa and start an internship.
India has had an intern visa category for foreign nationals who wish to pursue an internship with Indian companies, educational institutions and non-profit organisations, subject to conditions such as the gap after completing studies and the duration of the internship. The host’s letter setting out the internship, its duration and any stipend supports the application. Research placements at universities may fall under research or student visa categories instead. Visa rules change, and the current conditions should be checked with the Bureau of Immigration or the Indian mission before the offer is final.
Other points for foreign interns:
Indian students going abroad for internships face the reverse questions; their host organisation’s letter and the foreign country’s visa rules govern, and an Indian college may need the same credit documentation described above.
Start your internship agreement
Some organisations ask interns, or fresh graduates on training programmes, to sign a bond: a promise to stay for a period, or to pay a sum if they leave early, justified as recovery of training costs. For interns, such bonds are almost always inappropriate, and often unenforceable.
Under section 74 of the Contract Act, a sum named in a contract as payable on breach is not automatically recoverable; a court will allow only reasonable compensation for loss actually caused, up to the sum named. An organisation that has spent little on an intern’s training will struggle to justify a large bond. And a restraint on working elsewhere after leaving faces section 27 of the Contract Act. Our SLA guide explains how courts treat pre-agreed sums.
There are fairer ways to protect an organisation’s investment in training. For employees on long, costly training programmes, a reasonable, documented training cost recovery clause, reducing over time, may be justified; for interns, the protection is simply to choose interns carefully, make the internship worthwhile, and make a good offer to those worth keeping.
Interns who are asked to sign a bond, deposit original certificates, or pay a sum to join should treat it as a warning sign. Holding a student’s original mark sheets or degree as security is a particularly objectionable practice that has repeatedly drawn criticism, and it can prevent the student from pursuing studies or other jobs.
Ending early. Internships end early for many reasons: the intern finds a job, the college schedule changes, the fit is wrong, or there is misconduct. The agreement should allow either side to end the internship on short notice — a week is common — and allow the organisation to end it immediately for serious misconduct. Long notice periods, penalties or bonds are inappropriate for interns.
Feedback. A final review with the supervisor, covering what the intern did, what went well and what to work on, is one of the most valuable parts of an internship for the intern. A written evaluation, in the college’s format where required, should follow.
The certificate. A completion certificate should state:
Where the internship ended early, the certificate should cover the period actually completed. Organisations should not issue certificates for internships that did not happen, or with inflated dates; employers and colleges increasingly verify, and a false certificate reflects on the organisation as much as the intern. Our experience letter service prepares certificates and letters, and our employment verification service helps organisations respond to verification requests later.
Exit checklist. Return of equipment and access cards, deletion of files from personal devices, removal of system access, final stipend payment, and a confirmation that no organisation material has been retained.
Internships are often the first step to a job, and pre-placement offers are a common outcome of good internships. The transition should be handled as a transition, not a blur.
No implied promise. The internship agreement should say that the internship does not give the intern any right to employment. If the organisation intends to consider interns for jobs, it can say so, with the criteria and timing.
A fresh contract. When an intern becomes an employee, a new offer letter and employment agreement should be issued, with a clear start date. Continuing on the same arrangement with a salary increase creates doubt about when employment began, which matters for probation, gratuity service, notice and benefits. Our appointment letter and employment agreement services prepare these, and our employment agreement guide explains probation.
Counting the internship. The organisation may choose to count the internship towards a reduced probation, or not; the employment agreement should say which.
Intellectual property and confidentiality assigned during the internship remain assigned; the employment agreement should confirm that it supersedes the internship agreement for the future while preserving obligations already accrued.
Students still in college. A pre-placement offer to a student who has not yet graduated should state the joining date and any condition such as completing the degree.
For interns, a pre-placement offer is an offer like any other: read it, compare it, and ask questions before accepting.
Organisations that take interns every season benefit from treating the internship as a programme rather than a series of favours. A small amount of structure saves time and protects the organisation.
Organisations of every size that run internships this way find that good interns come back as employees, colleges send their best students, and the documentation takes minutes rather than hours.
Students often accept internships quickly, grateful for the opportunity. A few questions before accepting protect them without appearing difficult.
Be wary of “internships” that require payment, promise guaranteed jobs, or involve selling products to friends and family. Many are not internships at all.
Where an organisation refuses to issue a certificate or pay an agreed stipend, a polite written request, then a formal notice, usually resolves it. Any court case is for your advocate, engaged and paid by you directly; we do not quote, collect or share that fee.
A consumer startup in Gurugram hired six recent graduates as “interns” for a year, unpaid, with a certificate promised at the end. They handled customer support tickets to daily targets, worked the same shifts as the two permanent staff, and received no training beyond the first day. After eight months, one left and filed a complaint claiming unpaid wages.
Faced with the complaint, the founders took advice and rebuilt the programme. Existing “interns” who were doing support work were offered fixed-term employment contracts with salaries and statutory benefits from a stated date, and the dispute with the complainant was settled. For the future, the company created a genuine internship: eight to twelve weeks, a monthly stipend and travel allowance, a written learning plan with rotations through product, marketing and support, a named mentor for each intern, mid-point and final reviews, and a certificate describing the actual work. Interns signed an agreement with confidentiality, IP assignment and a portfolio clause, and were introduced to the POSH policy on day one.
The following year, the company made pre-placement offers to three of its eight interns, each on a fresh employment agreement. Its internship listings received several times as many applications, because students talked about the programme.
A design student at a Delhi university needs a six-week internship for credit. A small studio in Shahpur Jat agrees to take her, but the college asks for an offer letter with hours, a supervisor, weekly attendance, an evaluation and a completion certificate in its format.
The studio uses a short internship agreement with the college’s formats attached as schedules. The agreement records a modest stipend and daily travel reimbursement, core hours from ten to five on weekdays, the studio’s principal designer as mentor, and two projects: a packaging redesign for a client and an internal brand refresh. It includes confidentiality about clients, an assignment to the studio of copyright in the work produced for clients, a clause allowing the student to include published work in her portfolio with credit, and a week’s notice to end the internship on either side.
At the end, the mentor signs the attendance sheets and the evaluation, the studio issues a certificate describing both projects accurately, and the student’s packaging design goes into production with the studio’s rights in order. A year later, when the client registers the design, the studio can show the assignment.
An internship agreement from us costs ₹900 and is ready in Same day – 2 days. Organisations taking several interns a year usually ask for a standard version with a one-page schedule for each intern, which we prepare as part of the same work.
| Included | Why it helps |
|---|---|
| Internship agreement and offer letter format | Clear terms before the first day |
| Learning plan and supervisor section | A real internship, and evidence that it was one |
| Confidentiality, IP assignment and portfolio clause | The organisation owns the work; the intern can still show it |
| College-compatible attendance and evaluation format | Credit without last-minute paperwork |
| Guardian consent section for minors | School placements handled properly |
| Completion certificate template and exit checklist | An accurate record, and nothing walking out the door |
Stamp and notary charges, if you want them, are extra at actual cost, and we tell you the total before we start. Visa questions for foreign interns are for the immigration authorities; tax on stipends for your accountant. If a dispute ever reaches court, it is for your advocate, whose fee is engaged and paid by you directly; we do not quote, collect or share it.
A good internship has a start and an end, a mentor, a plan, fair payment for real work, and a certificate that says what actually happened. It also has a signed page that says who owns the work and what stays confidential. Tell us about your internships — how many, how long, paid or unpaid, for credit or not — and we will prepare an agreement that works for you, your interns and their colleges.
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