Underpaid to undervalued: stipend a necessity?

Author: Anjir Solanki, Devi Ahilya Vishwavidyalaya, Indore

TO THE POINT

With the recent debates on the necessity of a stipend has become the talking agenda for junior interns and law students in India, which has affected capable students but not compensated for the credible work and expenses borne at the cost of “experience”, raising social inequality from less privileged backgrounds. This educational culture has become a source of exploitation for young talent. Drawing on Article 14, Article 21, and other legal frameworks, this article aims to analyse the essence of the debate. With increasing judicial scrutiny, in late June 2025 a PIL brought this issue to focus before the Bombay high court the court questioned if it had the power to grant such relief and addressing the concern of junior lawyers by stating who holds accountability to provide such funds and the PIL was not related to public interest which highlights that a clear, enforceable legal framework remains absent.

This article also holds a comparative analysis with international jurisdictions, with India’s regulatory lag needing legislative interference, and its applicability, and a collaborative effort from employers, educational institutions. Such reforms are crucial, not merely charitable; they are a legal necessity to uphold fairness and professionalism in legal training for talent, and not equating it with experience.

ABSTRACT

Unpaid legal internships strip away the credibility and fairness for hard work done by young talents, which poses a problem for underprivileged individuals and privileges the financially secure. These interns often receive no compensation, unlike their counterparts in other fields involving young interns. This discussion involves the recent PIL filed where the Bombay High Court questioned its maintainability. The article defines legal terminologies involving the constitution, factual evidence explaining the extent of exploitation, arguments related to the debate with a comparison of international legal frameworks, with generally asked questions and concludes by stating that stipend isn’t just an aid but a right for acknowledging the value of labor, cultivating an equal learning practice.

LEGAL JARGONS

Public Interest Litigation (PIL)- it is a type of plea to court regarding public interest which concerns a larger part of society or where the affected party doesn’t have the means to represent themselves another party appears on their behalf, courts can also take Suo moto (on their own will) of the case ensuring speedy justice and accountability.

Article 14- it means the state has a negative duty i.e. equality before law no one will be treated above the law and benefits to one and not to another and a positive duty i.e. equal protection of law everyone should be equal (like as alike and unlike as unlike) with a reason to create classes. 

Article 21- everyone has a right to their life, liberty, privacy, livelihood, and it has a broad scope, except that they aren’t absolute and are subject to the procedure of law.

The Code on Wages Act, 2019, replaced previous Indian labor laws. It doesn’t mention interns, but employees in organized and unorganized sectors with the concept of minimum wages and equal wages.

Apprentices Act, 1961- a law that aims to provide practical training to apprentices, including their qualifications, duties, duration, and type of training to increase skills backed by a stipend and reasonable working hours, where internships are academic, which have no specific protection under any statute 

Stipend and Salary – A stipend is a fixed amount of money provided to trainees, interns, and apprentices to cover basic expenses related to skill development, not productivity. They are non-taxable, but a salary is for professional work under a formal employment contract, which is continuous and taxable.

Bar Council of India rules- it is technically emphasised but not legally applicable, which is a sum of 20,000 in urban regions and 15,000 in rural regions. 

PROOF

Unpaid internships have become widespread practise in India in professional scenario along with the recent BCI rules to have mandatory internship leading to intense competition for placements and experience with academics, examinations while needing a break turning into a stressful race for a meaningful experience, upon that internships remain “camps of free labour” even for deserving work and effort, raising ethical concerns as interns perform tasks similar to employees including research, bearing travelling and living expenses,  administration etc. With the normalization of unpaid labor, interns have to settle for work for free, desperate to enhance their resumes. The financial burden creates an uneven playing field for interns with financial constraints, thereby opening opportunities for the privileged and potentially benefiting their future employment prospects. Companies also miss out on real talent. Moreover, interns feel undervalued, which declines the quality of work, and women face harassment, making internships exploitative and unsafe in the workplace.

Comparison 

The Indian government brought the PM internship scheme (PMIS) in late 2024, which covered over 1.25 lakh interns with a monthly stipend, but doesn’t include law. In the USA, the Fair Labor Standards Act (FLSA) includes provisions for minimum wage, overtime payment, and protection for workers, but doesn’t include interns. In the UK, for employment rights, interns for work experience or voluntary experience are not entitled to wages unless they qualify as a “worker” or “employee”. The European government also sought to ban unpaid internships dated 14/06/2023, yet to be implemented, and the rest countries don’t explicitly recognise the need for minimum wages for interns, raising concerns, at least not wages, but benefits should be provided. A paper shouldn’t reflect the efforts made.

Arguments for the debate

1. Money motivates- encourages interns to be more serious to work harder and learn, and be valued for their work
2. Fair chance- many students can’t afford to do free work, so that the poor and rich get equal opportunities and prevent exploitation
3. Diversity- companies can pool talent from different backgrounds, which may benefit them 
4. Covers basic expenses- living in big cities is expensive, so the stipend can cover rent, food, and travel, reducing pressure on students
5. Future expectations- if they are underpaid now, they will not realise their potential; fair pay helps to set hopes for future jobs

Arguments against the debate

1. It’s for learning- many employers say that internships are an experience to grow and develop, not income, which is an educational favor
2. money issues- startups, struggling employers, and NGOs have financial problems as well, so they can’t afford to pay interns
3. not benefiting- some companies feel that interns don’t bring much to the table and slow things down, that they lack real-world skills, which takes their time in teaching rather than benefiting
4. options available- they argue that if unpaid internships aren’t favourable to interns, they can always choose, but with competition and mandatory internships, it seems difficult 

CASE LAWS

1. PIL to Bombay High Court- 2 law students appealed to the court for a stipend of 5000 to junior lawyers by the BCI of Maharashtra and Goa, with interns earning less than 1 lakh in the initial 3 years, stating different states’ stipend schemes and the BCI recommendation of a stipend. During the June 2025 hearing, the judges remarked that it targeted a specific group; they can ask for an even bigger amount, but who’s accountable to pay it, and granted 2 weeks for final arguments with a lack of legal enforcement. 
2. Maneka Gandhi v. Union of India- the case broadened the scope of Article 21, not just physically related, but the taking of a passport without justification violated the petitioner’s livelihood, fair conditions, right to travel, and dignity.
3. Olga Tellis v. Bombay Municipal Corporation- the action by BMC was deemed to be without due process to take away the homes of the poor, which violated their livelihood and necessities under Article 21, and was directed by the Supreme Court to give other housing options.
4. Vishakha v. State of Rajasthan- generated the birth of Vishakha guidelines and PIL by woman activists for the rape of a woman and addressing sexual harassment at work, that it violated Article 14, 21 that measured should be taken to protect women

CONCLUSION

The shift from underpaid to undervalued reflects a serious issue in the treatment of interns in India. Stipends shouldn’t be seen as a problem but as a rewarding step for real work. Without pay, it becomes difficult to cover expenses, posing a problem for the underprivileged. Paying interns would ease their financial burden, at least not a big amount, but that covers basic expenses or perks that benefit them. Companies and organizations could attract a wide array of students, but the current situation slows down innovation. The legal situation in India is inconsistent and unclear; courts alone can’t solve the issue. India needs a proper law to define an intern, fair pay, working hours, and to raise complaints with colleges and universities as participants. Paying interns fairly is not just the right thing to do; it’s smart.

FAQ

1. Are unpaid internships legally covered?

Currently, there is no specific law for legal internships that prohibits unpaid internships, unlike the Apprentices Act, 1961, but if an intern works similar to an employee, there is a legal argument that they should be treated as an employee and compensated accordingly, even though it is an internship. 

2. Are interns considered employees under labour laws?

No, they are not under the acts such as the Minimum Wages Act, 1948, or the Industrial Disputes Act, 1947, as workmen or employees, representing a lack of protection and benefits; however, the stance can change through judicial review.

3. What is the role of BCI in stipends for internships? 

With the recommendation of a stipend for interns not yet applicable, the BCI has cited a lack of funds and support from the government; the ongoing PIL in the Bombay High Court deals with the same issue.

4. Which other countries have stricter laws?

Many developed countries have stricter laws, although not particularly for interns, but do recognise the efforts, such as in France, if the internship is longer than 2 months, you will be paid. The EU is moving towards a ban on unpaid internships, and the USA has a primary beneficiary test to determine if the intern should be considered as an employee and be paid under the FLSA.

Sources 

1. https://sbshrs.adpinfo.com/newsletter/dol-unpaid-intern-test-what-employers-need-to-know 
2. https://www.indiatoday.in/india/law-news/story/plea-seeks-stipend-for-junior-lawyers-bombay-high-court-questions-maintainability-2746192-2025-06-25 
3. https://www.livelaw.in/high-court/bombay-high-court/bombay-high-court-young-lawyers-stuatory-right-stipend-from-bar-council-295704#:~:text=The%20Court%20was%20hearing%20a,in%202021%2C%20was%20studying%20law. 
4. https://www.excelia-group.com/about-excelia/blog/student-life/securing-internship-france-a-guide-international-students#:~:text=If%20your%20internship%20is%20longer,is%20the%20standard%20in%20France. 
5. https://pminternshipscheme.com/#google_vignette 
6. https://indiankanoon.org/ 
7. https://www.indiacode.nic.in/