Internship Agreements Do Not Require Regulation by the European Union

The European Commission has drafted a directive aimed at improving the working conditions of interns and combating situations where standard employment relationships are disguised as internships. The Estonian Chamber of Commerce and Industry believes that the problems regulated by the internship agreement are not currently relevant in Estonia, and over-regulation of internship opportunities may reduce companies' willingness to offer internships to young people.

In Estonia, Employment Relationships Are Not Hidden Behind Internship Agreements
According to the planned directive, regular employment relationships must not be disguised as internships, and member states must ensure control and inspection measures to detect and combat such activities. The Chamber's assessment is that there is no significant problem in Estonia where an ordinary employment relationship is hidden behind an internship agreement. In Estonia, internships are mainly used alongside school studies to gain initial professional experience, and in the case of employment, the probation period regulated by the Employment Contracts Act can be used. Even if the parties have signed an internship agreement that in content corresponds to an employment relationship, the intern in Estonia today has the option to turn to the labor dispute committee or court. Additionally, interns always have the opportunity to seek help from the labor inspectorate.

Over-Regulation May Reduce Internship Opportunities
With the enactment of the planned directive, companies offering internship opportunities may worry that they need to think more carefully before signing an agreement with an intern and, if necessary, be able to prove that the intern does not have exactly the same duties as other employees. If the intern works to a lesser extent compared to regular employees, the question also arises as to whether and to what extent the intern should be paid according to their contribution. An intern is always a cost to the company, but companies offer this opportunity to contribute to the next generation. If too strict requirements, including remuneration, are set for internships, offering internship opportunities may become unpopular among companies, which in turn hampers the development of young people and the growth of new labor force. The Chamber believes that the directive could hinder the practice that has been in place in Estonia, where companies voluntarily take young people as interns to train them and provide them with initial professional experience.