Internship arrangements have reportedly been abused by many employers that the Fair Work Ombudsman has been prodded to look deeper into allegations that companies have been using the set-up to enjoy 'free services' from hapless workers.

According to The Daily Telegraph, the practice has been widespread and the usual 'victims', many of them willing as per media reports, were young and newly-graduates who were aiming to gain experience and possibly a foothold for future employment.

In a report recently issued by University of Adelaide law school academic Andrew Stewart, student who require work and fresh graduates were the most susceptible to such abuses perpetrated by some employers.

These youngsters' foremost concerns were to build up their professional network, which they believe would eventually work for their advancement, hence they agreed to work for free that in most cases last longer than what internship has defined by workplace regulations.

"There are instances where young workers have spent months, or even years, doing unpaid work that would ordinarily be undertaken by a regular employee," Professor Stewart was reported by The Australian as saying on Wednesday.

Clearly, he added, unscrupulous companies have been exploiting young workers' excitement to obtain work experiences in advancing their business interests.

His findings also indicated that most vulnerable to such exploitations were young workers who live far from their families since they lack the support system that those living with their relatives normally enjoy.

"In most cases, there's no problem when it's a short placement, especially if it's done as part of a recognised education or training program," yet eventually, Professor Stewart added, the thin line between gaining experience and being exploited were usually greyed in the process.

The FWA probe, according to Fair Work Ombudsman Nicholas Wilson, is meant to drive home the point that businesses need to correct their questionable practices while at the same time rightfully inform young workers that they have the "right to be paid and should not put up with exploitation if it occurs."

The investigation, he added, should also clarify the specific workplace regulation on the matter.

"There's presently no uniformed guidance when something is considered an unpaid workforce trial and when something is employment," Wilson told The Australian in hinting that somehow the existing laws were presently inadequate in effectively addressing the problem.

For the most part, the FWA inquiry will at least identify the loopholes of the current set up and then the agency can make specific recommendations to state and federal authorities, Wilson said.