What Is an Internship Agreement and Why Every Company Needs One
An Internship Agreement is a formal document that outlines the relationship between a company and an intern. Unlike a standard employment contract, it focuses on educational value, mentorship, and learning objectives while still setting boundaries around responsibilities, conduct, confidentiality, and duration.
Internships can bring immense value to both the business and the student or graduate. But without a clear agreement in place, the arrangement can lead to miscommunication, legal risks, and reputational harm.
🎓 Why Use an Internship Agreement?
- Clarifies expectations for both parties
- Reduces legal risks under labor laws
- Provides documentation for educational credit (when applicable)
- Outlines ownership of work product
- Sets rules for confidentiality and data protection
- Defines learning outcomes
🧾 What Should an Internship Agreement Include?
- Parties Involved – Name of intern and the company
- Internship Duration – Start and end dates
- Work Schedule – Expected hours per week
- Compensation (or lack thereof) – Paid, stipend, or unpaid (with legal justification)
- Learning Objectives – Skills the intern is expected to gain
- Duties and Responsibilities – What tasks the intern will perform
- Supervision – Who will mentor or manage the intern
- Confidentiality Clause – If intern has access to sensitive info
- Intellectual Property – Who owns the results of the intern’s work
- Termination – Conditions under which either party can end the internship
⚖️ Legal Considerations
- Interns in the U.S. may be subject to the FLSA’s primary beneficiary test
- Unpaid internships must be educational in nature and benefit the intern
- GDPR and HIPAA may apply depending on the data handled
- Some countries (e.g., France, Germany) require contracts for all internships
✅ When Is an Internship Agreement Legally Required?
- Unpaid internships at for-profit companies
- Credit-based internships through universities
- Cross-border or remote internships involving international labor regulations
🧑💼 Who Should Use One?
- Startups hiring summer interns
- Marketing agencies offering part-time internships
- HR departments structuring intern onboarding
- Nonprofits collaborating with university students
🧰 How to Get a Template or Create One Fast
Rather than drafting from scratch:
👉 Try our Internship Agreement Generator — fill in a few fields and download a professional contract instantly.
📌 Summary
Internship Agreements are no longer optional. They protect your company, guide interns, and provide structure for a productive learning experience.