The government has introduced a new clause to the Border Security, Asylum and Immigration Bill that would significantly broaden the scope of the UK’s right to work regime.
Under the proposed changes, right to work checks would be required not just for employees, but also for individuals engaged through non-traditional contracts, such as so-called gig economy workers.
Current right to work rules
Under the Immigration, Asylum and Nationality Act 2006, UK employers must conduct right to work checks before employing anyone. These checks confirm that an individual has the legal right to work in the UK.
When performed correctly, right to work checks can protect employers from civil penalties if a worker is later found to lack immigration permission. To establish a statutory excuse, employers must follow the prescribed steps, such as verifying original documents or using the online right to work checking service where applicable. Employers must also retain records.
Failure to comply can result in fines of up to £45,000 per breach for a first offence, rising to £60,000 for repeat offences.
At present, these legal obligations only apply where a worker is employed under a contract of employment. Employers who engage individuals through other arrangements, such as self-employment or third-party platforms, are not currently required to carry out these checks.
The government’s impact assessment explains that the current framework does not reflect the realities of the modern labour market, as growing numbers of businesses now use flexible working arrangements that fall outside the scope of existing rules. This, the government says, has created opportunities for illegal working and made it harder to enforce immigration laws fairly.
Right to work regime expanding to cover gig economy
The government says it aims to prevent exploitation, improve tax compliance and ensure that businesses meet consistent legal standards by extending right to work checks to cover all forms of labour engagement.
The expanded requirement will see those working under a contract for services, such as individual subcontractors or freelancers, and to workers sourced via online matching platforms, brought into the scope of the right to work regime. It would also cover casual, zero-hours and other forms of temporary engagement commonly seen in the gig economy.
A formal consultation is planned before the new requirements come into effect. Employers and stakeholders will be invited to provide input on how the expanded regime should work in practice, for example, identifying the types of engagements that would be covered and helping shape guidance and enforcement processes.
The Home Office will use the consultation period to gather evidence on how businesses currently operate and to assess the practical implications of the new rules. There are plans to publish official guidance before enforcement begins. A lead-in period is expected to allow employers to update their internal procedures.
Although a firm date has not been set, the government expects the new obligations to be in force no later than the 2026–27 financial year.
Key takeaways for employers and HR teams
The consultation period will offer an opportunity to raise concerns or seek clarity. In the meantime, staying informed on the development of the new rules will be essential to ensuring future compliance.
Employers who rely on freelance or contract workers should begin reviewing their engagement models now. HR professionals may need to prepare to introduce right to work checks for a wider group of individuals than before. Training, record-keeping procedures and internal policies should be reviewed in light of the anticipated changes.
Author
Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.
Gill is a Multiple Business Owner and the Managing Director of Prof Services - a Marketing & Content Agency for the Professional Services Sector.
