Internship Agreement (Canada)

An Internship Agreement in Canada is a legally binding written instrument.S.C. 1985, c. L-2).

The legal distinction between a paid intern and an unpaid intern is critical in Canada. In Ontario, the Employment Standards Act s. 1(2) sets out six conditions that must all be met for an unpaid internship to be exempt from minimum wage and other employment standards protections. The internship must be part of a formal educational program, primarily benefit the intern, not displace a regular employee, and the employer must derive no immediate advantage from the intern's work. British Columbia's Employment Standards Act provides a narrower exemption limited to practicums that are a required component of a post-secondary curriculum. Alberta's Employment Standards Code offers almost no exemption — most interns are considered employees entitled to minimum wage.

For paid internships, the intern is treated as an employee for all purposes. The employer must deduct Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, and federal/provincial income tax, and remit these to the CRA. The employer must also provide workers' compensation coverage through the provincial board (WSIB in Ontario, WorkSafeBC in BC, WCB in Alberta).

The agreement should also address intellectual property ownership. Section 13(3) of the Copyright Act 1985 vests copyright in works created by employees during employment in the employer, but explicit IP assignment clauses eliminate ambiguity for interns. Section 14.1 of the Copyright Act 1985 allows moral rights to be waived but not assigned. The Canadian Intellectual Property Office administers patent registrations under the Patent Act 1985 and trademark registrations under the Trademarks Act 2019, both relevant when interns create commercially valuable innovations.

The forms-legal.com Internship Agreement Canada template incorporates all mandatory elements under Section 1(2) of the Employment Standards Act 2000 in Ontario, Section 3(1) of British Columbia's Employment Standards Act 1996, and Section 2 of Alberta's Employment Standards Code 2000. The Canada Revenue Agency administers CPP deductions under Section 8 of the Canada Pension Plan Act 1985 and EI premiums under Section 82 of the Employment Insurance Act 1996. The Personal Information Protection and Electronic Documents Act 2000, enforced by the Office of the Privacy Commissioner of Canada, governs personal data collected during the internship. Employment and Social Development Canada administers the Canada Labour Code 1985 for federally regulated employers. Disputes regarding internship classification or unpaid wages are adjudicated by the Ontario Superior Court of Justice, the Ontario Labour Relations Board, provincial superior courts, or the Federal Court of Canada for federally regulated employers. Workplace safety obligations during the internship are governed by the Occupational Health and Safety Act 1990 in Ontario and the Workers Compensation Act 2019 in British Columbia, administered by the respective provincial safety regulators.

When a business or organization hosts a student completing a mandatory practicum or co-op placement as part of their post-secondary education, and the educational institution requires a signed agreement before the placement begins.

When hiring a paid summer intern or seasonal intern where the company must comply with provincial minimum wage requirements, statutory holiday pay, and workplace safety standards.

When an employer offers an unpaid internship and needs to document that the placement meets all six conditions under Ontario's ESA s. 1(2) or the equivalent provincial exemption, reducing the risk of a retroactive minimum wage claim.

When the intern will create intellectual property — research, code, designs, written content — and the employer needs a clear assignment clause to avoid disputes over ownership after the internship ends.

When the intern will have access to confidential business information, client data, or trade secrets, and the employer needs binding confidentiality and PIPEDA compliance obligations in writing.

Without a formal internship agreement, the employer risks misclassification complaints to the Ontario Ministry of Labour under Section 96 of the Employment Standards Act 2000, retroactive minimum wage claims, CPP and EI assessments from the Canada Revenue Agency under Section 227.1 of the Income Tax Act 1985, and loss of intellectual property created during the placement. The Workplace Safety and Insurance Board in Ontario and WorkSafeBC in British Columbia may also assess unpaid premiums if the intern is later found to be a worker entitled to coverage under the Workplace Safety and Insurance Act 1997 or the Workers Compensation Act 2019. Additionally, without a written confidentiality clause, the employer may be unable to enforce trade secret protections against a departing intern under common law principles applied by the Ontario Superior Court of Justice. Employers across Canada should prepare and sign an Internship Agreement before the placement begins and retain it as a compliance record that can be produced in response to any audit by Employment and Social Development Canada, the Canada Revenue Agency, or a provincial employment standards office.

Paid vs. Unpaid Classification — An explicit statement of whether the internship is paid or unpaid, with reference to the applicable provincial exemption criteria. For unpaid placements, the agreement should document how each statutory condition is satisfied.

Compensation and Deductions — For paid internships, the hourly rate or stipend (meeting or exceeding provincial minimum wage), payment schedule, and confirmation that CPP, EI, and income tax deductions will be made and remitted to the CRA.

Duration and Schedule — Start and end dates, weekly hours, and any provisions for extension. Provincial employment standards may impose limits on working hours for young workers (under 18) that must be observed.

Duties and Learning Objectives — A detailed description of the intern's responsibilities, the skills they will develop, and the supervision structure. For unpaid internships, this section is essential to demonstrate that the placement primarily benefits the intern's education.

Supervision and Mentorship — Identification of the supervisor responsible for the intern's training, regular evaluation schedule, and feedback mechanisms. This supports the educational nature of the placement and helps defend against employee misclassification.

Intellectual Property Assignment — Under the Copyright Act s. 13(3), employee-created works belong to the employer, but an explicit assignment clause is recommended for interns to avoid disputes. The clause should cover all forms of IP including inventions, code, and designs.

Confidentiality and Data Protection — Obligations to protect proprietary information and comply with PIPEDA when handling personal data. These obligations should survive the end of the internship.

Workplace Safety and Insurance — Confirmation of WSIB/WCB coverage for paid interns, or identification of alternative coverage (such as the educational institution's insurance) for unpaid practicums.

Termination Provisions — Conditions under which either party may end the internship early, including notice periods, return of company property, and final payment obligations for paid interns. Section 54 of Ontario's Employment Standards Act 2000 requires minimum notice of termination for employees — paid interns with three months of service or more are entitled to statutory notice under Section 57 of the Employment Standards Act 2000. British Columbia's Employment Standards Act 1996 imposes similar notice requirements under Section 63.

The forms-legal.com Internship Agreement Canada template covers all mandatory elements under Section 1(2) of Ontario's Employment Standards Act 2000, Section 13(3) and Section 14.1 of the Copyright Act 1985, Section 8 of the Canada Pension Plan Act 1985, and Section 82 of the Employment Insurance Act 1996. Employment and Social Development Canada administers the Canada Labour Code 1985 for federally regulated employers. The Canada Revenue Agency administers source deduction obligations under Section 153 of the Income Tax Act 1985. The Office of the Privacy Commissioner of Canada enforces the Personal Information Protection and Electronic Documents Act 2000 for personal data collected from interns. The Workplace Safety and Insurance Board in Ontario, WorkSafeBC in British Columbia, and the Workers' Compensation Board of Alberta administer mandatory workers' compensation coverage. Ontario's Occupational Health and Safety Act 1990 imposes employer obligations to provide a safe workplace that apply equally to interns working on company premises. Disputes are adjudicated by the Ontario Superior Court of Justice, provincial superior courts, or the Federal Court of Canada for federally regulated employers. The Ontario Labour Relations Board adjudicates employment standards complaints under Section 96 of the Employment Standards Act 2000. The Competition Act 1985, enforced by the Competition Bureau, prohibits anti-competitive arrangements in hiring markets.