House seeks to end free labor for interns

A proposed law in the House of Representatives aims to end the longstanding practice of employers gaining free labor through unpaid internships.

House Bill 5081 seeks to protect interns from exploitative practices, abuse, and unsafe working conditions by providing adequate safeguards and fair compensation through a 75-percent stipend or allowance.

Interns spend hours, money, and effort performing complex tasks disguised as “experience.” However, despite their significant contribution to a company — whether in the private sector or government — the only thing they receive in return is the so-called “real-world exposure.”

The measure was filed by Akbayan lawmakers Chel Diokno, Perci Cendaña, Dadah Kiram Ismula and Dinagat Islands Rep. Arlene Bag-ao.

A counterpart measure was filed by Senator Risa Hontiveros, also a former Akbayan lawmaker, in the Senate, increasing the chances of the bill’s passage.

Hontiveros filed a similar bill in 2019 during the 18th Congress, but the measure languished at the committee level.

The proponents stressed that despite Commission on Higher Education Memorandum Order 104, s. 2017, which provides guidelines on student internships, numerous reports indicate that the abuse of interns persists.

“Interns perform menial tasks unrelated to their field of study, are exposed to unsafe workplaces, denied proper mentorship, and burdened with excessive hours without just compensation,” the bill read.

Under House Bill 5081, interns in government agencies shall receive a stipend equivalent to 75 percent of Salary Grade 1, Step 1, or the entry-level rate pegged at P14,061, based on a circular released by the Department of Budget and Management last January.

Meanwhile, interns in the private sector shall receive an allowance equal to 75 percent of the minimum wage, prorated according to hours worked.

The bill requires an internship contract between the university and the employer specifying, among others, the rights and obligations of both parties, the duration and schedule of the internship — which shall not exceed 300 hours or six months — and the compensation.