Expansion of the UK Illegal Working Regime: New Requirements for Right to Work Checks

The UK government has announced plans to implement significant changes to the illegal working regime that would extend the requirement for right to work checks to businesses hiring gig economy and zero-hour workers. This move is part of a broader strategy to strengthen the immigration system and clamp down on illegal working practices across various sectors.

Under the new regulations, companies hiring individuals in the gig economy will be legally required to verify that these workers are eligible to work in the UK. This requirement aligns gig economy businesses with traditional employers, who are already subject to such checks. The sectors likely to be most affected by the expansion of the regime include sports and entertainment, construction, hospitality, food delivery and courier services, among others. The checks are designed to confirm a worker’s immigration status and can be completed quickly, often within minutes.

Failure to conduct these checks will expose businesses to severe penalties, including fines of up to £60,000 per worker, potential business closures, director disqualifications, and even prison sentences of up to five years. These penalties mirror those already in place for traditional employment roles and aim to create a level playing field for all businesses.

ACTION FOR EMPLOYERS

While the principle of extending right to work checks is logical, the practical implementation poses challenges. Businesses must navigate complex legal definitions and ensure compliance without clear guidance on how to differentiate between workers and the genuinely self-employed. The lack of a definitive legal test for gig economy workers further complicates compliance efforts.

We will provide further updates about the scope and operation of the new illegal working regime as more details become available. In the interim, employers are advised to review their current right to work procedures and consider the resources needed to extend these checks to non-employed workers. Training and legal support are recommended to ensure robust and effective compliance with the new regulations.