Right to Work Checks Extended to Gig and Zero-Hours Work
Major changes to UK Right to Work requirements are set to take effect in 2025, targeting the gig economy and other flexible work arrangements. For the first time, companies engaging individuals on gig economy contracts or zero-hours arrangements will be required to conduct Right to Work checks for these workers, the Home Office confirmed in March 2025.
Closing the Loophole
This move closes a loophole in the current law, which only mandated such checks for formal employees under a contract of service. Thousands of businesses using flexible labour – from food delivery and courier platforms to construction, hospitality venues, social care agencies and beauty salons – were not previously obliged to verify the immigration status of those working for them. Now all employers, regardless of employment type, must confirm anyone working in their name has the legal right to work in the UK, bringing gig and zero-hours roles in line with traditional employment.
Enforcement and Penalties
This change is part of a government crackdown on illegal working in the gig economy. In the announcement on 30 March 2025, Home Secretary Yvette Cooper announced “tough new laws” to clamp down on unscrupulous employers, noting that “turning a blind eye to illegal working” fuels exploitation and even encourages people smuggling by promising illegal jobs.
Companies that fail to carry out the newly required Right to Work checks will face hefty penalties, identical to those for hiring illegal workers in regular jobs:
- Possible prison sentences up to five years for the worst offenders.
- Fines up to £60,000 per illegal worker;
- Possible business closure orders;
- Director disqualifications; and
- Possible prison sentences up to five years for the worst offenders.
In short, HR leaders must treat gig workers and casual staff with the same compliance rigour as any other employee, or risk severe consequences.
The Employment Rights Bill 2024: A Wider Shake-Up
Strengthening Worker Protections
These Right to Work measures arrive alongside broader employment law reforms under the Employment Rights Bill, which was introduced to Parliament in October 2024 by the new government. Billed as “the biggest change to employment laws in a generation,” the Bill seeks to strengthen protections for workers across all sectors, including those in the gig economy and on zero-hours contracts.
Predictability and Notice Rights
The flexible labour market is under increased scrutiny and evolving towards greater accountability and worker protections. Notably, the Bill proposes to “end one-sided flexibility” by giving zero-hours and gig workers a right to request a more predictable contract and requiring reasonable advance notice of shifts. Employers must also compensate for any shifts cancelled at short notice.
Day-One Rights and Harassment Prevention
Other major changes include:
- Day-one protection from unfair dismissal;
- Immediate access to parental, paternity, and bereavement leave;
- A ban on unjustified “fire and rehire” practices; and
- Stronger duties to prevent workplace harassment.
Employment Status Reforms
Ministers have signalled a review of employment classifications. While reclassification is not immediate, the government has committed to consulting on clarifying the distinction between “workers” and the genuinely self-employed. This could foreshadow further reforms – potentially even reclassifying many gig workers as employees entitled to rights like sick pay and holiday pay.
Why Are These Changes Being Introduced?
Closing Compliance Gaps
The Right to Work changes aim to close legal loopholes and combat illegal working, particularly where businesses previously relied on classifying workers as self-employed to avoid immigration checks.
Levelling the Playing Field
Legitimate employers who already performed Right to Work checks and other employment vetting have long voiced concerns over being undercut. These reforms aim to ensure consistent compliance standards across all employment types.
Protecting Workers and Businesses
By applying checks universally and introducing worker protections, the government aims to foster a fairer labour market. Flexibility is not being outlawed, but abuse of it is being addressed.
By extending mandatory Right to Work checks to anyone working in a company’s name, the law will make it much harder for illegal workers to be “hidden” in contractor or gig roles. As Immigration Minister Michael Tomlinson explained during earlier efforts to tackle this issue, “illegal working puts customers at risk, drives down wages and defrauds the taxpayer. It is vital that we shut down any loophole that allows it to happen.”
In short, the new rules ensure no form of employment is exempt from basic compliance, protecting both lawful workers and honest businesses from being undercut by black-market labour.
Penalties for Non-Compliance: High Stakes for Employers
Legal and Financial Consequences
Civil fines up to £60,000 per illegal worker, business closure orders, and director disqualifications await employers who fail to meet compliance. In the most serious cases, criminal prosecution could result in unlimited fines and up to five years’ imprisonment.
Reputational Risk and Enforcement
Even unintentional failures, such as paperwork errors, may trigger penalties. Reputational damage and safeguarding risks, particularly in hospitality and care, are also significant.
Heightened Enforcement
Enforcement raids and audits are increasing. The government is using technology like body-worn cameras and cross-agency data sharing to catch non-compliant businesses.
Preparing for Right to Work Compliance in 2025: Tips for HR
With the new requirements on the horizon, companies should take proactive steps to prepare.
Update Hiring Processes
First and foremost, update your hiring and onboarding processes to integrate Right to Work verification for all workers you engage, including freelancers, gig workers, and zero-hours staff. This means that before any individual sets foot in the workplace or logs onto your app to work, your team should have conducted a proper Right to Work check (for example, examining and copying their passport or biometric residence permit, or using the Home Office online checking service for visa holders).
Ensure you follow the approved checklist of acceptable documents and record the date you checked them, so that you retain a “statutory excuse” against liability.
Leverage Technology
Many organisations are adopting identity verification technology or certified Identity Service Providers to handle remote checks, which takes only minutes to confirm status. To keep pace with constantly evolving regulations, HR must embrace automation, not just as a convenience, but as a strategic necessity. By automating compliance monitoring and updates, HR teams can stay effortlessly aligned with the latest legal and policy changes, without manual tracking or last-minute scrambles.
If your business operates via a platform or app (as in food delivery or care gig marketplaces), work with your teams to build in compulsory ID/document upload steps for new joiners, plus periodic re-validation to catch any expired visas.
Train Your Teams
Training is critical. Train your HR staff, hiring managers, and any frontline supervisors who engage contractors on the new requirements. They should understand that no worker, regardless of label, can be skipped in the Right to Work process. Emphasise that this is now a legal obligation, not just best practice. It may be wise to designate a compliance officer or use an HR compliance software tool to audit that every new starter has a recorded check.
Review Labour Supplier Agreements
Businesses that rely on third-party labour (such as temp agencies or labour platforms) should review those contracts: make sure your partners are contractually obliged to perform compliant checks, and ask for evidence or audit rights. In sectors like social care or hospitality where last-minute staffing is common, build in a procedure to verify emergency hires, even if it is someone brought in for one shift, do not assume someone else has checked their papers.
In light of the Employment Rights Bill’s proposals, HR should also start adapting policies for zero-hours and gig workers’ rights. While the Bill’s measures (like the right to request a stable contract or compensation for cancelled shifts) may not be law until 2026, preparing early is prudent. Consider establishing an internal process for casual staff to request guaranteed hours if their work pattern becomes regular. Look at providing a minimum notice period for shift rosters and a policy on payment for late cancellations, to pre-empt the incoming rules.
Anticipate Future Legislation
Prepare for changes under the Employment Rights Bill:
- Create internal systems for casual workers to request stable hours
- Offer minimum shift notice and compensation for cancellations
- Adjust onboarding for day-one employment rights
Many forward-thinking employers are already trialling such practices as a recruitment and retention benefit. Similarly, with day-one employment rights on the horizon, you may need to adjust your onboarding and probation processes. For example, ensure managers give feedback and address performance issues early, since the safety net of a two-year dismissal window could vanish.
Stay Informed
Lastly, keep an eye on official guidance updates. The Home Office will likely release an updated employer guidance on Right to Work checks reflecting the extended scope. Make sure to use the latest guidance, as details like what documents are acceptable or how to treat certain contractors might evolve. Engaging with professional bodies (e.g., CIPD updates, legal briefings, etc.) or seeking legal advice for complex gig arrangements will help your organisation stay on top of compliance nuances.
The emphasis is on being prepared, documented, and diligent, so when 2025’s changes kick in, your business is already operating to the new standard.
Impact on Workforce Strategy and Flexibility
HR leaders should also contemplate the broader strategic implications of these changes on their workforce model.
Rethinking the Gig Model
In the past, one attraction of gig and zero-hours engagements for some employers was reduced red tape, but with legal obligations catching up, the administrative gap between contractors and employees is narrowing. This would bring additional costs (like employer NI contributions, holiday pay, pension auto-enrolment) and potentially reduce flexibility, but it might be a price for legal certainty.
We may see a shift toward traditional employment in roles where compliance and certainty are more critical.
Adapting On-Demand Models
The gig economy is here to stay, but onboarding, scheduling, and compliance infrastructure must evolve. HR technology that supports high-volume vetting and real-time ID verification will become essential. Companies like Deliveroo and Just Eat, for instance, have introduced biometric ID checks and registration systems for anyone using their platform, including substitute couriers, to swiftly root out unauthorised workers. Such measures, once seen as above-and-beyond, will become standard.
Building a Responsible Brand
Reputational considerations also play into strategy. Being known as a fair, law-abiding employer is a brand asset. Firms in sectors like social care and hospitality should recognise that compliance is part of their brand promise (safety and trust are paramount when caring for vulnerable people or serving the public).
HR leaders can turn this to advantage by highlighting their own compliance efforts in employer branding, reassuring stakeholders that gig workers and flexible staff are treated responsibly and verified.
Addressing Labour Supply Challenges
Finally, consider the talent pipeline implications. Tighter enforcement may reduce the available pool of casual labour and exacerbate staff shortages in sectors already struggling to recruit (such as care work or agriculture). Strategic workforce planning should account for this. Employers should broaden outreach, start recruitment earlier, and consider visa programmes to mitigate shortages.
Building a Future-Ready Workforce: Compliance and Opportunity in 2025
For UK HR and business leaders, 2025 will be a year of significant adjustment as Right to Work obligations and employment laws tighten.
The extension of Right to Work checks to gig, zero-hours and other flexible roles means no part of the workforce can fly under the radar. Meanwhile, the Employment Rights Bill foreshadows a landscape where even the most casual workers enjoy stronger rights and where employers are expected to proactively prevent exploitation. Early preparation, smart systems, and a proactive mindset will ensure your organisation doesn’t just stay compliant, it becomes a trusted, future-ready employer of choice.
These insights on Right to Work checks are brought to you by Certn’s EMEA team, the UK’s leading online provider for remote ID verification and fast, reliable DBS checks. Learn more about how Certn can help streamline your hiring at certn.co.
This publication is for informational purposes only and nothing contained in it should be construed as legal advice. We encourage you to consult with legal counsel regarding your specific needs. We do not undertake any duty to update previously posted materials.
