Small businesses could soon face fines of up to £60,000 for failing to carry out right-to-work checks on casual workers, including freelancers, under new government proposals that many retailers are unaware of.
Since 2008, employers have been required to verify right-to-work status for traditional staff on standard contracts.
But a new consultation, closing Wednesday 10 December, suggests extending those checks to workers operating in the “gig economy” under the Border Security, Asylum and Immigration legislation.
In line with existing penalties for failure to complete right-to-work checks, a company could receive fines of up to £60,000 per worker and if a criminal charge is pursued, in cases where business “knowingly” employs an illegal worker, penalties could be up to five years in prison and an unlimited fine.
The start date for when these changes will come into effect is unclear but it is not expected to come into full effect until 2027.
While the proposals are primarily aimed at sectors such as construction, food delivery and beauty services, the widened definition could easily capture freelancers and ad-hoc support staff used by independent retailers.
Trade groups warn that the additional administrative burden risks catching out small businesses already stretched by rising costs with many store owners still unaware that these changes are even on the table.
Alex Norris MP, the immigration minister, said in the consultation that the purpose of the legislation would be to “restrict the ability of rogue employers to take advantage of illegal workers and encourage businesses to provide work opportunities to those permitted to work in the UK”.
Earlier, the Home Office announced that in November it had arrested 171 delivery drivers working illegally in Britain, of which 60 were detained for removal from the UK as part of an “enforcement blitz”.