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

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
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