Clampdown on Illegal Working in Gig Economy

​From 1 October 2026, the UK government is set to enforce a major expansion of its illegal working regime, closing a long-standing legal loophole that has allowed many businesses to bypass Right to Work checks. Under Section 48 of the Border Security, Asylum and Immigration Act 2025, the responsibility to verify a worker’s legal status will now extend well beyond traditional employees to include agency staff, independent contractors, and those operating within the gig economy.

​Closing the Compliance Gap

​For years, businesses engaging self-employed couriers, delivery riders, or platform-based service providers could often avoid liability for illegal working by pointing to the “contractor” status of their staff. The new legislation effectively dismantles this defense by broadening the legal definition of an “employer.”

​Whether a business engages workers through an app, an online matching service, or as individual subcontractors, it will now be legally obligated to ensure all such individuals possess the right to work in the UK. Failure to do so could result in severe civil penalties of up to £60,000 per worker. In cases where an employer is found to have knowingly hired someone without legal status, they could face criminal prosecution, leading to an unlimited fine and up to five years in prison.

​A Data-Driven Response

​The government’s decision follows a significant surge in immigration enforcement activity during 2025. Home Office data highlights a 256% increase in arrests within the construction sector and a 217% rise in delivery and distribution services compared to 2024. These figures have spurred authorities to ensure that flexible labour arrangements are held to the same compliance standards as full-time, permanent staff.

ADVERTISEMENT

​What Businesses Must Do

​The expansion targets any organisation that relies on flexible, platform-based, or subcontracted labour, including sectors such as:

• ​Logistics and food delivery
• ​Construction and trade services
• ​Hospitality and cleaning
• ​Warehousing and security

​Industry experts are urging businesses to audit their labour supply chains immediately. Compliance can no longer be handled solely by HR departments; procurement, legal, and operational teams must now work together to map how labour enters their organisation. For many, this will require verifying the Right to Work status of everyone in their supply chain, rather than relying on third-party agencies to handle the responsibility.

​As the 1 October deadline approaches, the message to employers is clear: the relationship between a business and its workers—regardless of whether they are on a payroll or a flexible contract—must be supported by robust, auditable verification systems to avoid significant financial and legal consequences.

​Delivery firms could face £60K fines per illegal worker

​This video provides an overview of the new legislation and the government’s approach to increasing accountability for businesses in the delivery and gig economy sectors.