The EU is planning to clamp down on unpaid internships and “bogus” traineeships offered by unscrupulous employers with a new directive.
The move to strengthen the rights of young people on the first rung of their career ladder – to be tabled on Thursday – is likely to be the last major legislative proposal before the mandate of the European Parliament ends with the June elections.
Nicolas Schmit, the EU commissioner for jobs and social rights, said: “This is about companies that exploit the despair of young people.”
He said it was vital this practice was stamped out not just for the sake of young people but also to incentivise European companies to snap up “smart young people” before they consider emigration.
“The main thing you hear about in central Europe and maybe also some other countries in southern Europe is the brain drain; they complain that they are losing their better educated youth,” he said.
“And why does this happen? Because young people are not paid correctly or are just not paid at all when they are in a traineeship.”
The proposals are part of a drive to reduce labour shortages with the EU identifying 42 occupation deficits including IT, cyber security, technical staff in the solar power industry, the battery sector and health and construction where there is perennial pressure.
There is also “a major problem in road transport with several hundred thousands leaving the work force” since covid, Schmit said.
Just as the UK has done, the EU has identified a huge opportunity in the over 50s who have left the work force.
But unlike the UK, which has imposed barriers for entry to low-skilled workers, the EU is openly talking about the need to engage migrant workers at all skill levels.
The EU estimates there are about 3.1m trainees in Europe, half of whom are not paid.
According to a Eurobarometer survey in 2023, almost 80% of young Europeans said they had done at least one traineeship with nearly 70% saying they got a job after their training stint.
Though the EU does not have the legal power to insist on the minimum wage being paid as that is a national competency, under the proposals trainees and those on internships would be guaranteed some pay but also the rights to social benefits including sick pay and contributions to national insurance.
They would also require countries to set up rigorous inspection systems to crack down on employers using young people on low pay or no pay to do the same job as a regular worker.
Schmit added: “This is what we call bogus traineeship where I hire you as a trainee, but you do the same work as any worker.
“To help the labour inspectors, we have a list of things that would indicate that something is a bogus traineeship.”
Indicators that a company is cheating include a high number of trainees on the workforce, so-called trainees in the same position for more than six months or don’t have a supervisor checking their work.
He said the directive would also underline incentives for most of the companies who do not see traineeships as a source of free labour to exploit.
They see hiring “young, smart people” as an investment for companies because it’s the way to attract smart young persons.
“Smart businesses, especially in a context where there is a shortage of skilled labour do not exploit traineeships.”
The directive says that member states must ensure “trainees are not discriminated against as to their working conditions including pay” with “inspections authorities” in place “to detect cases where regular employment disguised as traineeships lead to lower levels of protection … including working conditions and pay” and will require them to take action in these cases.
Under the EU system the commission drafts the laws but member states on the council of the European Union and MEPs will then pick it apart before arriving at an agreement. Council recommendations alread show it will not be plain sailing.
Directives in the EU require member states to change their national laws to comply with the overarching legislation emanating from Brussels.
In some countries such as France internships have to be paid, but in Germany internships are in the minimum wage act but those on internships that last less than three months do not necessarily have to be paid.
