Government extends right-to-work checks to gig economy

The government has announced that right-to-work checks will now be a legal obligation for companies in the gig economy, as it tries to cut back on illegal working practices.

This change brings the rules for gig economy firms in line with those for more traditional employers. Companies that are found to be flouting the rules could face a range of severe penalties. These include five-year jail terms in the most serious cases, as well as fines of as much as £60,000 for each applicable employee.

Under the terms of the new rules, companies that employ gig workers will have to verify that they have the legal right to work in the UK. That will involve conducting right-to-work checks for all of their employees. Some of the major companies that will be affected are Just Eat, Deliveroo and Uber Eats.

The move has earned the government praise from employment rights groups, but some observers have also expressed concern. They have pointed out that small businesses will be disproportionately affected, because they are more likely to employ gig workers due to the flexibility.

Many of those smaller firms lack HR departments too, which will make compliance harder. It is further evidence of why employee HR services are so important, regardless of the size of the company.

Limelite HR CEO Lisa Murphy has argued that companies in that position could simply stop employing gig workers, especially if compliance is made difficult and time consuming.

That is something that the government will have to weigh up, as the changes come into effect.