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UK Government Extends Penalties for Hiring Illegal Workers to the Gig Economy | Consensus HR in Herts & Beds

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Government to Extend Penalties for Hiring Illegal Workers to Gig Economy

Author:
Matthew Chilcott – Owner, Consensus HR

Introduction:

The UK Government has announced a crucial change to employment law that will significantly impact the gig economy and businesses employing zero-hours and flexible workers. From now on, right-to-work checks must be carried out for all types of workers – including freelancers, temporary workers, and contractors. This move is designed to tackle illegal working practices and ensure that all individuals employed in the UK have legal status.

What’s Changing?

Previously, right-to-work checks were only required for traditional employees. Now, businesses across delivery services, beauty, construction, hospitality, and other gig-based sectors must ensure that all individuals they engage have the legal right to work in the UK.

Failure to comply could result in:

  • 💷 Fines of up to £60,000 per illegal worker

  • 🚫 Potential closure of business premises

  • ❌ Director disqualification

  • ⛔ Up to 5 years in prison

These enhanced penalties are intended to create a fairer employment environment and eliminate competitive advantages gained through non-compliance.

HR and Legal Compliance: What Employers Must Do:

With these new rules in place, it’s never been more important to ensure your HR systems and recruitment processes are fully compliant with UK employment law. Here’s what we recommend:

  • ✔️ Conduct robust right-to-work checks for every worker – not just employees

  • ✔️ Keep accurate, secure records of all identity documentation

  • ✔️ Provide training for managers on legal recruitment practices

  • ✔️ Regularly review and update your HR policies and contracts

  • ✔️ Engage with an expert HR consultancy to guide you through legal requirements

Expert Comment from Matthew Chilcott – Owner, Consensus HR:

*“The extension of right-to-work checks into the gig economy is a positive move to prevent illegal employment and protect genuine workers.

At Consensus HR, we work closely with businesses to ensure their employment practices are compliant, clear, and fair – whether they hire permanent staff, contractors, or freelancers.

Don’t wait for a fine or inspection to realise your HR needs attention. Prevent problems before they start.”*

How Consensus HR Can Support You:

Whether you’re an SME, growing startup, or established organisation, we provide expert support in:

  • ✅ Right-to-work compliance and checks

  • ✅ Retained HR services

  • ✅ HR audits and documentation reviews

  • ✅ Policy writing and employment contracts

  • ✅ Ongoing HR advice tailored to your sector

As an award-winning HR consultancy, we help business owners meet their legal obligations and create workplaces where teams thrive.

Contact Consensus HR:

Let us help you stay compliant and confident when employing workers in today’s complex landscape.

🌐 Website: www.consensushr.com
🔗 LinkedIn: Consensus HR on LinkedIn
🐦 Twitter (X): @ConsensusHR
📘 Facebook: Consensus HR on Facebook

Need HR advice now?
Reach out to our team today at www.consensushr.com or message us directly via our social media channels.

To view more about our range of HR & Employment Law Services

At Consensus HR, we are proud to offer a wide range of HR & Employment Law services to help our clients with all areas of best practice and Employment Law which can be found by clicking on the button:
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Are you concerned about keeping your business up to date with Employment Law changes?

If your business always wishes that it works in all areas to the benefit of the team and company and as an employer of choice, give us a call or email now for a non-obligatory chat. Consensus HR | Your Outsourced Human Resources and Employment Law Department | “Helping companies take the pain out of managing people whilst Preventing People Problems.” 01438 576750
Contact Us

Your Outsourced Human Resources (HR) Department.

For further information on any of the HR subjects we provide, please click the heading below:

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Tackling Illegal Working | Consensus HR in Herts & Beds

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DALL·E 2025-02-17 10.19.02 - A UK business setting addressing illegal working compliance. A professional HR manager is training a team on right-to-work checks, with legal document

 

Tackling Illegal Working: Key Updates for Employers in 2025

The Home Office’s Immigration Enforcement teams have recently reported their most successful January in over half a decade, making significant strides in tackling illegal working across the UK. This marks a major part of the Government’s ongoing efforts to restore order to the immigration system through their “Plan for Change.”

 

Record-Breaking Enforcement Activity:

During January 2025, Immigration Enforcement teams visited 828 premises, a 48% increase in enforcement activity compared to the same month in 2024. These premises included a range of businesses, such as nail bars, convenience stores, restaurants, and car washes. In total, 609 arrests were made—an alarming 73% rise from the 352 arrests made in January 2024.

This surge in activity reflects the Home Office’s growing commitment to stamping out illegal working and exploitation. Home Secretary Yvette Cooper reinforced this message, stating, “The immigration rules must be respected and enforced. For far too long, employers have been able to take on and exploit illegal migrants, and too many people have been able to arrive and work illegally with no enforcement action ever taken… That’s why, as part of our Plan for Change, we are boosting enforcement to record levels.”

Since the Government took office in July 2024, the number of illegal working visits and arrests has risen by approximately 38% when compared to the same period in the previous year. The Home Office also issued 1,090 civil penalty notices, holding employers accountable for employing individuals who do not have the right to work.

DALL·E 2025-02-17 10.19.57 - A UK business compliance meeting on illegal working prevention. Employees in a corporate boardroom reviewing employment verification documents, with a

The Importance of Right to Work Checks:

In light of these developments, employers must be more diligent than ever about ensuring their staff have the legal right to work in the UK. In the latest update from the Government, the Home Office has clarified some key points related to right to work checks:

  • Cancelled Passports: A clipped British or Irish passport is now considered a cancelled document and, therefore, is no longer an acceptable proof of right to work.
  • Birth Certificates: Both short and long birth certificates are acceptable as proof of identity, provided they are accompanied by official evidence of the individual’s name and National Insurance number, which can be issued by a government agency or a previous employer.

Matthew Chilcott, Owner of Consensus HR, on the Impact for Employers:

Matthew Chilcott, Owner of Consensus HR, comments on these developments:

“With the Government’s increased focus on tackling illegal working, it’s more important than ever for businesses to stay ahead of compliance requirements. The surge in enforcement activity signals a clear message that employers must take their responsibilities seriously. Simple oversights in right to work checks can lead to significant fines and reputational damage.

At Consensus HR, we help employers navigate these complexities by offering guidance on right to work checks, ensuring you have the right processes in place to avoid costly mistakes. We also work with businesses to ensure ongoing compliance, especially with updated legislation like the recent changes to acceptable documents. “

What This Means for Your Business:

For employers, this increase in enforcement activity underscores the critical need for thorough and consistent right to work checks. Failing to comply with immigration regulations can lead to hefty penalties and even criminal charges. As enforcement rises, the risks for non-compliance become even more significant.

  • Review Your Right to Work Checks: Ensure your team is familiar with the latest guidance on acceptable documents.
  • Keep Accurate Records: Document every check you perform to prove compliance in the event of an audit.
  • Stay Informed: As immigration policies continue to evolve, staying up to date with changes is essential for avoiding mistakes.

By proactively managing your right to work processes, you can reduce the risk of enforcement action and avoid the severe penalties associated with employing individuals without the right to work in the UK.

DALL·E 2025-02-17 10.23.26 - A UK business seminar on tackling illegal employment. A professional trainer is explaining UK immigration laws and employment verification procedures

Conclusion:

The Home Office’s increased focus on illegal working will continue to have significant implications for employers across the UK. By making sure you’re fully compliant with right to work checks, you protect your business from fines and potential legal action. For more information and guidance, the team at Consensus HR is here to help you ensure you’re meeting all legal requirements in your hiring practices.

Connect with Consensus HR for Ongoing Support: Stay up to date on workplace compliance and HR best practices:

Would you like more tailored advice on compliance or best practices for right to work checks in your business? Let us know!

 

To view more about our range of HR & Employment Law Services

At Consensus HR, we are proud to offer a wide range of HR & Employment Law services to help our clients with all areas of best practice and Employment Law which can be found by clicking on the button:
Click Here

Are you concerned about keeping your business up to date with Employment Law changes?

If your business always wishes that it works in all areas to the benefit of the team and company and as an employer of choice, give us a call or email now for a non-obligatory chat. Consensus HR | Your Outsourced Human Resources and Employment Law Department | “Helping companies take the pain out of managing people whilst Preventing People Problems.” 01438 576750
Contact Us

Your Outsourced Human Resources (HR) Department.

For further information on any of the HR subjects we provide, please click the heading below:

Important Health & Safety Update | Consensus HR in Herts & Beds

Copyright © Consensus HR All right reserved.

Designed by JCP Web Designs

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