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Out-Law News 2 min. read

UK right to work checks could expand to agency and gig economy workers


A proposed amendment to extend right to work checks to gig economy and agency workers could mark a significant change for UK employers, according to experts.

The change has been put forward as part of the Border Security, Asylum and Immigration Bill, which is currently passing through the House of Lords, and includes an amendment to the Immigration, Asylum and Nationality Act 2006 to change how right to work (RTW) checks are applied.

The proposal follows the government’s announcement in March that it would introduce tougher laws to crack down on illegal working. Although all UK employers have a duty to prevent illegal working, at present employers aren’t required to carry out RTW checks on the self-employed or those who are contracted by an agency. In the case of agency workers, the responsibility of confirming someone’s immigration status and their eligibility to work in the UK falls to the company providing the labour.

The government has identified this as a significant gap in the labour market whereby sectors from construction, food delivery and beauty salons to courier services are engaging workers without the responsibility to complete right to work checks. The amended legislation would extend the civil penalty regime to gig economy workers and zero-hours contract staff, regardless of their employment status.

Commenting on the development, Shara Pledger, immigration law expert at Pinsent Masons, said:

“This change is the most major update to the scope of RTW checks in some time. This is going to make it very difficult for employers who rely on agency and gig economy workers. Rather than being able to trust the agency, or the worker, they will now need to conduct their own checks. This comes with additional time, cost, admin and data security considerations.”

Pledger said the amendment would be particularly relevant to agencies when managing staff absences. Some companies might find this prohibitive, she said. “For example, if you have an agency providing assistance on an infrastructure project, someone is unwell and they need to bring someone else in – they can't just show up with a new worker. The full RTW process and record keeping associated with it needs to be done.”

The change will affect all gig economy workers in the UK, which could be as many as half a million people (26-page / 924KB) in the UK, according to estimates by the Chartered Institute of Personnel and Development (CIPD). Further guidance on what the changes will mean for the sector is expected to be issued at a later date.

Although it is unclear exactly at this stage how the measures will operate in practice, Pledger said the change could significantly increase the compliance burden for employers: “The Home Office perspective is that this will reduce illegal work, but in many instances this is just doubling the work. Agencies will need to do checks and then the employer using the agency has to do their own in addition.”

Between 5 July 2024 and 22 March 2025, the Home Office issued 1,508 civil penalty notices in relation to illegal working, with employers facing fines of up to £60,000 per illegal worker.

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