Gig Economy to Come Under Right to Work Regime

right to work changes

IN THIS ARTICLE

The UK government has proposed a major change to the right to work regime through a new clause in the Border Security, Asylum and Immigration Bill.

If approved, the change will require employers to conduct right to work checks not only for standard employees but also for a wider group of individuals engaged under more flexible or informal working arrangements.

 

Proposed changes to right to work regime

 

Under existing rules set out in the Immigration, Asylum and Nationality Act 2006, UK employers must carry out right to work checks on all employees before employment begins. These checks help employers confirm that the individual is legally allowed to work in the UK and provide protection from penalties if the person is later found to be working illegally.

To establish a statutory excuse, employers must either check original documents from the approved list, or check the individual’s right to work online using digital or online checking systems. They must also retain records of all checks for compliance purposes.

Currently, the law on right to work checks applies only to employees under a contract of employment, and there is no legal obligation to carry out right to work checks for subcontractors, self-employed individuals, or casual workers engaged outside a formal employment relationship.

Under the new clause, right to work checks would need to be completed for anyone working through:

 

  • A contract for services (such as freelancers or subcontractors),
  • Online platforms (for example, gig economy apps), or
  • Other non-traditional agreements where work is provided to a third party.

 

The expanded requirements are designed to reflect changes in the UK labour market, where many individuals now work under casual, zero-hours, freelance or agency-based contracts.

According to the Home Office’s impact assessment, the current rules have allowed some businesses to avoid carrying out checks by engaging individuals through alternative means rather than employing them directly. As a result, there have been concerns about illegal working, exploitation, and unfair advantages for businesses that sidestep compliance duties.

The government has said it intends for the reforms to support fair competition across all sectors and ensure consistent application of immigration rules. It also aims to encourage responsible hiring practices, protect workers and maintain public confidence in the immigration system.

 

Timeline for implementation

 

The new rules are not yet in force. A formal consultation will be held with employers and sector bodies to develop guidance and gather feedback. The government intends to provide a transition period following publication of guidance, allowing time for employers to prepare. The new obligations are expected to apply no later than the 2026–27 financial year.

Although the legislation is not yet in force, early planning will help employers stay ahead of compliance risks and be better prepared once new guidance is issued.

Employers who rely on gig workers, agency staff or self-employed contractors should therefore review their engagement models. HR teams should begin considering how current right to work procedures might need to change to cover a wider group of workers.

 
 
 

Author

Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.

Gill is a Multiple Business Owner and the Managing Director of Prof Services - a Marketing & Content Agency for the Professional Services Sector.

Legal disclaimer

 

The matters contained in this article are intended to be for general information purposes only. This article does not constitute legal advice, nor is it a complete or authoritative statement of the law, and should not be treated as such. Whilst every effort is made to ensure that the information is correct, no warranty, express or implied, is given as to its accuracy and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should be sought.

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