This post was originally published on this site.
UK companies could be hit with fines of up to £60,000 per worker under proposed changes that would require right-to-work checks to be carried out on freelancers and other casual workers, a move that many business owners remain unaware of.
Under current rules, employers have been legally required since 2008 to carry out right-to-work checks on employees engaged under traditional employment contracts. However, a government consultation — closing on Wednesday 10 December and forming part of the Border Security, Asylum and Immigration Bill — proposes extending those obligations to cover workers in the gig economy.
While the changes are aimed at sectors such as construction, food delivery and beauty services, legal experts warn that the scope could extend far wider, potentially capturing freelance workers, contractors and agency staff across many industries.
The proposals could place a significant administrative burden on small businesses, particularly those that rely heavily on flexible or freelance labour. Zoe Williams, founder of supplement brand Aegle, said the changes had not been on her radar. Williams, who is the sole permanent employee at her business — which recorded £1 million in sales this year — relies on freelancers to operate.
“It’s not something that I have heard of before,” she said. “For small businesses anything that is extra admin is always quite challenging.”
In the consultation document, immigration minister Alex Norris said the measures are designed to “restrict the ability of rogue employers to take advantage of illegal workers and encourage businesses to provide work opportunities to those permitted to work in the UK”.
Rob McKellar, legal services director at employment law specialist Peninsula, said immigration enforcement had become an increasingly prominent political issue. “The government wishes to be seen to do everything it can to tackle illegal immigration,” he said.
The Home Office said last month that it had arrested 171 delivery drivers working illegally in the UK, with 60 detained for removal, as part of an enforcement operation targeting the gig economy.
Failure to comply with the proposed rules could expose businesses to severe penalties. As with existing right-to-work obligations, employers could face civil fines of up to £60,000 per illegal worker. In cases where a business is found to have knowingly employed someone without the right to work, criminal sanctions could include unlimited fines and prison sentences of up to five years.
Audrey Elliott, a partner at law firm Eversheds Sutherland, warned that the risks extend beyond financial penalties. “There is also a significant reputational risk, particularly for businesses bidding for public sector contracts,” she said.
Elliott advised companies to review their workforce arrangements carefully and ensure robust processes are in place for all individuals carrying out work, including freelancers and agency staff. Employers must not only verify right-to-work status before work begins, but also monitor visa expiry dates to ensure ongoing compliance.
Over time, Elliott suggested, some businesses may choose to move away from freelance arrangements altogether. “We may see more employers opting for traditional employment relationships to reduce compliance risk,” she said.
The government has yet to confirm when the changes would come into force, though legal experts expect implementation could be as late as 2027.
