Under current rules, a business is only liable for a civil penalty for an individual without permission for the role they are working in if they are hired under a contract of employment.
As part of its plan to clamp down on illegal working, the government published an illegal-working impact assessment (Impact Assessment) in May this year in relation to proposals to extend that liability to a wider part of the labour market to include workers, service providers matched with customers via online platforms, and individual subcontractors. Prior to these changes coming into force, the Home Office has launched a consultation, which is open to employers across the UK until 10 December 2025. Responses to the consultation are intended to inform the preparation of new Home Office guidance and the statutory code of practice that will support the new rules. Further details can be found on GOV.UK’s Extending the Right to Work Scheme webpage. The Impact Assessment document is worth a read before you respond to that consultation. The lack of clarity in the document suggests a flawed understanding on the government’s part of how difficult its proposals are to digest.
Why Is This Important?
The introduction to the consultation indicates that the Home Office’s primary focus is businesses that use gig-economy and zero-hours workers (particularly in sectors such as construction and food delivery), but in reality, the changes in legislation will affect any business with a contingent work force, regardless of sector. We therefore recommend that all employers consider the issues we have highlighted and, if they are potentially affected, that they engage loudly and clearly with the consultation to ensure that their concerns are heard.
