The UK Government has recently introduced a significant amendment to the Border Security, Asylum and Immigration Bill, aiming to extend right-to-work checks to cover alternative working arrangements, encompassing the gig economy and zero-hours workers – both of which previously fell outside the scope of the usual right-to-work regulations we advise on. This move is part of a broader strategy to further combat illegal working and ensure fair competition across all sectors.
Key changes
Currently, right to work checks are mandated for traditional employees under standard employment contracts*. The proposed amendment seeks to broaden this requirement to include:
- individuals engaged under contracts for services (as ‘workers’ and not in relation to a profession or business undertaking);
- individual sub-contractors engaged to provide work or services for a third-party by a person/organisation contracted by the third-party; and
- individuals sourced through online matching platforms/services.
In all the above cases, the right to work check will be the responsibility of the person/organisation engaging the individual unless there is an online matching service, in which case it will be responsible, rather than an end user.
*Please note that sponsor licence holders that sponsor self-employed workers are already required to carry out right to work checks on these workers (and retain evidence that they have done so) to ensure compliance with their sponsor duties.
Effect on liability
‘Employers’ could become liable for an illegal working civil penalty of up to £60,000 per illegal worker along with potential criminal convictions and reputational damage, even where there is no contractual relationship between the business and the worker.
‘Employers’ may need to:
- update onboarding procedures: implement standardised right-to-work checks for all workers/contractors, regardless of contract type to ensure compliance;
- leverage technology: utilise digital verification tools, such as the Home Office’s online right-to-work checking service or approved providers of Identity Document Validation Technology (IDVT) to efficiently help facilitate compliance; and
- train HR personnel: ensure that hiring managers and HR teams are well-versed in the new requirements and procedures.
Timeline and next steps
At time of writing, the Bill is currently at second reading in the House of Lords. The Bill is in draft form and as such can still be amended.
We understand the Government plans to consult with businesses and stakeholders before implementing the changes, with the new requirements expected to take effect no later than 2026–27.
‘Employers’ are advised to proactively assess and adjust their current right-to-work check policies to ensure compliance with the forthcoming regulations.
