Question 1

Are unpaid internships legal in Canada?

Accepted Answer

Unpaid internships are heavily restricted in Canada. In Ontario, an unpaid intern must meet all six conditions under ESA s.1(2) to be exempt from employee status. In BC, only practicums required by a post-secondary institution curriculum are exempt. In Alberta, interns are generally considered employees. Most unpaid internships must be part of a formal educational program.

Question 2

Do paid interns receive CPP and EI deductions?

Accepted Answer

Yes. Paid interns are considered employees for tax purposes. Employers must deduct Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, and federal/provincial income tax, and remit them to the CRA.

Question 3

Who owns intellectual property created by an intern?

Accepted Answer

Under the Copyright Act s.13(3), the employer owns copyright in works created by employees in the course of employment, unless otherwise agreed. For interns, it is advisable to include an explicit IP assignment clause to avoid disputes.

Question 4

Does an intern need workers’ compensation coverage?

Accepted Answer

Employers must generally provide workers’ compensation coverage (WSIB in Ontario, WorkSafeBC in BC, WCB in Alberta) for paid interns. For unpaid educational practicums, the educational institution may provide coverage depending on the province.

Frequently Asked Questions