In the UK, employers are required to carry out compliant right to work checks on all employees, but up until now, this did not apply to people hired in the ‘gig economy.’ With recent announcements by the government, this is about to change.
What is the current regime?
Employers have a legal duty to prevent illegal working in the UK, and this has been the case since the Immigration, Asylum and Nationality Act 2006 became law in 2008. Employing a person in the UK who is subject to immigration control, and who has no legal right to work in the UK, may result in the employer receiving a civil penalty of up to £60,000 per illegal worker. However, if the employer has carried out compliant Right to work checks, this will provide the employer with a statutory excuse. A statutory excuse is an employer’s defence against a civil penalty. In April 2025 Immigration Enforcement published their updated list of the illegal working civil penalties that were given out by them in the Summer of 2024. This list includes penalties of up to a staggering £180,000 for a single employer. With costs rising for employers, an illegal working civil penalty could be devastating for businesses.
In addition to civil penalty notices, if employer is found to be employing someone illegally and they have not carried out the prescribed right to work checks they may face other sanctions including a criminal conviction, closure of the business, revocation of a sponsor licence, seizure of earnings and reputational damage.
The Home Office Guidance ‘Employer’s guide to right to work checks’ (updated 12 February 2025) sets out employers’ duties in relation to right to work checks. Under the current guidance, employers who employ staff under a contract of employment, service or apprenticeship, must comply with the guidance and complete right to work checks. With regards to indirect employees, such as those in the ‘gig economy,’ it states:
“Where the worker is not your direct employee (for example, if they’re self-employed), you are not required to establish a statutory excuse. However, you must still carry out these checks (and retain evidence you have done so) if you are a sponsor licence holder and are sponsoring the worker to ensure compliance with your sponsor duties.”
Employers are not currently legally obligated to conduct right to work checks for workers who are genuinely self-employed. That said, the Home Office guidance was changed last year to ‘strongly encourage’ employers to carry out right to work checks on such individuals, but it remained the employers ‘choice.’ This may be to avoid negative publicity if a self-employed worker is found to be working illegally. For instance, it is understood that Deliveroo, Just Eat and Uber Eats already voluntarily carry out right to work checks on all their workers.
What is changing?
On 30 March 2025 an announcement was made by the Home Office that will change this previous approach. In an effort to ‘crackdown’ on illegal working, the Home Office announced they will be expanding the requirement for employers and businesses to complete right to work checks on “anyone working in their name”. This means that for the “very first time, employment checks will be extended to cover businesses hiring gig economy and zero-hours workers in sectors like construction, food delivery, beauty salons and courier services.’ The associated civil and criminal sanctions for non-compliance will be made applicable in these circumstances.
To prepare for this change, on 8 May 2025 the government added a new clause to the Border Security, Asylum and Immigration Bill, which would extend the application of the existing right to work scheme to cover those working in the gig economy.
How can employers prepare?
Although we do not yet have clarity on when the changes will take effect, the assumption is that the legislation will be in force at the latest by 2026/2027. Employers are encouraged to start preparing for this law change now. This should involve assessing their current right to work check policies to ensure that their checks are compliant with the Home Office guidance and what changes may need to be made to accommodate the proposed changes. In due course, it will be important that onboarding procedures are standardised regardless of the ‘type’ of worker.
Need more help?
Immigration law is a complex and constantly evolving field of law. Please see our recent article on Immigration Changes 2025. As an employer, it can be hard to keep up with the latest Immigration Rules and policies and the impact of these on their organisation.
Our Immigration team has a wealth of experience in assisting clients with managing sponsor licences and the recruitment of international workers, as well as advising on carrying out compliant right to work checks. If you require immigration support, you can speak to one of our highly experienced professionals by calling 0345 450 5558 or by emailing enquiries@stephens-scown.co.uk.