Can company sue unpaid intern for early resignation?
If an individual signs an offer letter for an unpaid internship at a startup and resigns within three hours of starting work, can the company take legal action against that individual? Is it even possible, and if so, what is the extent of such action?
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Advocate By LEAD INDIA
Answered: 13 Aug 2025
If someone resigns shortly after starting an unpaid internship, there’s usually no legal consequence. Since it’s unpaid and not under formal employment law, companies cannot sue unless there’s clear proof of a signed bond or damages. So, in most cases, there is nothing to worry about legally. For further legal assistance contact us on our helpline number.
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