Company directors in the United Kingdom could face prison sentences of up to five years if they fail to carry out legal right-to-work checks on gig economy and zero-hour contract workers, the Home Office has warned.
The new measures, announced ahead of a televised appearance by Home Secretary Yvette Cooper on Sunday Morning, signal a significant tightening of the UK’s stance on illegal employment practices within short-term labour markets.
The crackdown comes amid concerns that thousands of companies employing workers across gig economy sectors – such as construction, courier services, food delivery, and personal care – are not currently compelled by law to confirm whether those individuals are legally permitted to work in the UK.
Under the amended Border Security, Asylum and Immigration Bill, employers who neglect to conduct proper checks could also face severe penalties, including disqualification from serving as company directors, fines of up to £60,000 per unverified worker, or even the forced closure of their businesses.
The Home Office said the updated legislation aims to “level the playing field” for businesses that already follow the rules. In an official statement, the department noted that these eligibility checks “take just minutes to complete” and will now become mandatory across all relevant sectors.
“Turning a blind eye to illegal working plays into the hands of callous people smugglers trying to sell spaces on flimsy, overcrowded boats with the promise of work and a life in the UK,” Ms Cooper stated. “These exploitative practices are often an attempt to undercut competitors who are doing the right thing. But we are clear that the rules need to be respected and enforced.”
Major players in the food delivery sector – including Deliveroo, Just Eat and Uber Eats – already carry out right-to-work checks voluntarily. However, this move by the government aims to ensure compliance across all employers engaging with gig and zero-hour contract staff, especially those who may currently evade scrutiny.
The Home Office insists that making such checks compulsory will help disrupt organised criminal networks that exploit migrant labour, and form part of a broader government effort to strengthen the UK’s immigration system. The checks themselves will be offered free of charge, eliminating financial barriers for employers who may have previously claimed cost as a deterrent.
Industry observers have suggested that while the majority of established companies are likely to be unaffected by the new rules, smaller firms or those operating informally could find themselves vulnerable to enforcement action. The legal implications – including potential jail terms for company directors – represent one of the most stringent interventions in employment compliance for the gig economy to date.
The announcement also aligns with a broader government strategy to tackle illegal migration by removing incentives for individuals to enter the UK under false pretences, especially when lured by rogue operators promising unauthorised employment.
While the Home Office is positioning the change as a necessary and proportionate response to a long-standing problem, critics may argue that the move places further administrative pressure on small businesses already struggling with post-Brexit staffing challenges and economic uncertainty.
The Workers Union Says…
“This policy should create a fairer and more accountable employment environment. It also underscores a renewed focus on enforcement, with employers now being given little excuse for ignorance or oversight. The new rules are expected to be rolled out later this year, following parliamentary scrutiny and the implementation of supportive guidance materials for affected industries.”
