Stuck in Internship Limbo
Two years at the same desk, handling critical projects, attending all-hands meetings, even training new recruits yet your ID card still says Intern. The remuneration is modest, benefits are nil, and the promise of a “full-time offer” keeps getting pushed to the next quarter. In India, this is often called shadow employment.
The big question: Does doing the work of a full-time employee for two years legally make you one?
1. Intern vs. Employee — The Legal Definition
Indian labour law doesn’t clearly define “intern.” Courts look at substance over labels.
The Control & Supervision Test
Under the Industrial Relations Code, 2020 (effective 2026), you may already be an “employee” if the company:
- Controls your working hours and leave.
- Provides equipment (laptop, desk, email ID).
- Integrates you into core business operations.
- Subjects you to disciplinary rules.
If these apply, your “internship” may legally be employment.
The Two-Year Benchmark
Most structured schemes (like the PM Internship Scheme) cap internships at 12 months. The Apprentices Act, 1961 regulates training periods, usually 1–3 years depending on trade. If you’ve crossed the 12–24 month mark without a clear training curriculum, a court could view your role as disguised employment to avoid statutory benefits.
2. Benefits You May Be Entitled To
If a Labour Commissioner or court finds you’re a de facto employee, you may claim back-dated benefits:
- Social Security Code, 2020: PF and ESIC if your remuneration is actually wages.
- Gratuity: After 5 years, or even 1 year for Fixed-Term Employees under new codes.
- Leave Benefits: Paid leave and sick leave under state Shops & Establishments Acts (e.g. Karnataka).
3. Fixed-Term Employment (FTE) — The Legal Shortcut
The 2026 Labour Codes introduced Fixed-Term Employment (FTE) as a middle ground.
If you’re working on a long project (say 2 years), you should be hired as FTE. This ensures:
- Parity in Wages — same pay as permanent employees doing similar work.
- Statutory Benefits — PF, ESI, and pro-rata gratuity.
If you’re doing FTE-level work but being paid an intern remuneration, the company is in a compliance grey zone.
4. Your Helpful Peer Action Plan
Before storming HR, play it smart:
- Gather Evidence — Offer letter, performance reviews, emails assigning employee-like tasks, attendance records.
- Clarify with HR —
“I have been contributing to the core team for 24 months. Given my responsibilities, I would like to discuss transitioning to a Fixed-Term or Permanent role under the 2026 Labour Codes guidelines.”
- Check Apprentices Act — If you’re registered as an apprentice, duration limits apply (usually 1–3 years).
- Consult a Labour Law Expert — If HR refuses to regularise but continues to use you as full-time staff, legal advice is your next step.
Bottom Line
- Labels don’t matter — work substance does.
- Long-term “internships” without training are legally suspect.
- You may already be entitled to PF, ESI, gratuity, and leave.
- The 2026 Labour Codes give you stronger grounds to demand fair treatment.
In short: If you’re doing the work of an employee, Indian law may already see you as one — no matter what your ID card says.
Disclaimer:
This content is for educational and informational purposes only and does not constitute legal advice. The interpretation of “employee status” depends on specific facts, contracts, and judicial precedents. Always consult a qualified Advocate or expert labour law consultant for your specific situation.