Tuesday, April 1, 2025

UK gig economy employers face jail for failing worker checks

The Home Office has announced that the UK government will require all employers in the gig economy and zero-hour contract sectors to verify that workers have legal employment status. Company directors who fail to comply could face up to five years in prison, business closures, bans from directorship, and fines of up to £60,000 per worker.

The policy change, part of amendments to the Border Security, Asylum and Immigration Bill, aims to curb illegal working and disrupt people-smuggling networks. The Home Office says the checks, which take minutes to complete, will be provided free of charge.

Major gig economy firms like Deliveroo, Just Eat, and Uber Eats already conduct voluntary worker eligibility checks, but thousands of other businesses currently have no legal obligation to do so. The government argues the new rules will create a level playing field for compliant companies.

The announcement comes ahead of an international summit in London, where ministers from 40 countries will discuss strategies to combat human trafficking and illegal migration routes. The UK government also plans to expand enforcement powers against people-smuggling networks.

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