Right-to-work checks and the gig economy: what employers need to know

The Home Office has announced plans to extend right-to-work checks to include gig economy and zero-hours workers – a significant shift that will affect how UK employers manage compliance. Until now, these checks have focused mainly on traditional employment relationships. The proposed changes form part of the Border Security, Asylum and Immigration Bill currently before Parliament.

With the new rules in place, employers and HR professionals must ensure their organisations are fully compliant to avoid severe penalties. These include civil penalties of up to £60,000 per illegal worker, the potential for business closures, and even criminal liability – including prison sentences of up to five years for knowingly employing someone without the right to work.

These obligations will apply regardless of employment contract type or working pattern, and extend to any business using third-party platforms or subcontracting arrangements. Sectors such as construction, food delivery, beauty, and courier services – which often use non-traditional labour models – will face the same legal responsibilities as employers of full-time staff.

Challenges for employers in the gig economy

Employers in the gig economy already face unique compliance hurdles. Unlike traditional employment, where workers have fixed contracts and established HR processes, gig work often involves short-term, flexible arrangements with workers moving between multiple platforms. This creates challenges such as:

• High turnover rates: Gig economy businesses often onboard workers rapidly, making it difficult to maintain robust compliance checks.
• Complex worker classifications: The distinction between employees, workers, and self-employed contractors can sometimes blur, making it unclear whether right-to-work checks are required.
• Decentralised hiring: Many gig platforms rely on automated systems or local managers to onboard workers, increasing the risk of inconsistent compliance.

How can HR ensure compliance with right-to-work checks?

With the new legal requirements, HR professionals must take proactive steps to embed right-to-work verification into the hiring process. Key measures include:

• Standardising onboarding procedures: Every worker, regardless of contract type, should undergo the same rigorous right-to-work checks as full-time employees. This includes verifying identity documents in line with Home Office guidance.
• Implementing digital verification solutions: Given the scale of hiring in the gig economy, technology can play a vital role. Digital identity verification tools, such as the Home Office’s Identity Document Validation Technology (IDVT) for remote checks, can help businesses comply efficiently.
• Training hiring managers and HR teams: Ensuring all those responsible for recruitment understand the new rules and their responsibilities will be crucial in avoiding non-compliance.

Keeping compliance up to date: frequency and best practices

HR teams must take a proactive approach to compliance, rather than treating right-to-work checks as a one-off process. Best practices include:

• Regular audits: Conduct internal compliance checks at least annually to ensure right-to-work procedures are being followed correctly.
• Monitoring regulatory changes: Immigration and employment laws evolve frequently, so HR professionals should stay informed of any updates from the Home Office.
• Maintaining accurate records: Businesses must retain copies of right-to-work documents for the duration of employment and for at least two years after the individual leaves. Digital records should be securely stored and easily accessible for audits.

The extension of right-to-work checks to gig economy and zero-hours workers marks a fundamental change in UK employment compliance. HR professionals will play a key role in ensuring their organisations remain compliant, mitigating the risks of fines and legal consequences. By integrating robust verification processes, leveraging technology, and staying up to date with legal developments, businesses can navigate these changes effectively while maintaining a flexible workforce.

For tailored advice on right-to-work compliance or gig economy workforce issues, contact employment lawyer Marie van der Zyl.