The Government has announced that employers who hire gig workers will soon be legally required to carry out employment checks.
On March 30th 2025, it was announced that organisations engaging gig economy or zero-hours workers must carry out Right to Work (RTW) checks, which is already a required for direct employees.
The law on preventing illegal working is set out in the Immigration, Asylum and Nationality Act 2006, and this legislation will need to be amended before the changes can come into effect.
What Does This Mean to Your Business?
Currently, RTW checks are only required for individuals under a contract of employment, service or apprenticeship. When the individual is not a direct employee, checks are recommended, but not a strict legal requirement (except in situations where the person is sponsored to work in the UK, under a sponsor licence). The requirement to perform RTW checks is set to be extended to apply to those working more flexibly, such as those in the gig economy and those on zero-hours worker contracts.
If your business uses flexible labour typically seen in sectors such as construction, delivery, beauty, events or hospitality, this applies to you. You’ll soon be legally required to verify that individuals have the right to work in the UK before they are engaged.
What Is the Gig Economy?
The term refers to a labour market where individuals are paid for short-term, flexible jobs rather than permanent roles, often working for multiple employers or platforms. Think couriers, cleaners, hairdressers and freelance trades. Gig economy workers are not usually classed as ‘employees’.
Statistics published by StandOutCV, in March 2025, estimate that the UK gig economy now comprises around 1.7 million workers. One in five gig workers in the UK considers this their primary source of income, with couriers and private hire drivers being the most likely to rely on it full-time. As gig work becomes increasingly common, regulation is starting to catch up.
What Are the Risks?
Organisations that fail to carry out these employee checks will face penalties that are already in place for employers hiring illegal workers outside of the gig economy. These include fines of up to £60,000 per illegal worker, business closure, director disqualification or even potential prison sentences of up to five years.
If the employer cannot do an online right to work check, or if applicants cannot show an acceptable physical document, these checks can be completed free of charge through the Home Office’s Employer Checking Service.
Organisations can also use digital ID verification technology to streamline the process.
What Further Clarity is Needed?
More information will be needed on issues, such as:
- Will checks need to be carried out on non-sponsored, genuinely self-employed workers and agency workers?
- Where casual workers are permitted to send a substitute to perform work in their place, will RTW checks be needed on substitutes?
- Will RTW checks apply retrospectively to existing workers, or only to new hires after a particular date?
If you’re unsure whether this affects your business or would like help navigating the process, our employment law specialists are here to support you.
Please contact our team on 02920 853731 or tcms@thomas-carroll.co.uk and our employment specialists will be happy to help.
