Contractors face up to £60k fines amid crackdown on illegal working

Companies that fail to carry out right-to-work checks when hiring zero-hour workers could face fines of up to £60,000 per worker and potential prison sentences of up to five years.

The government announced the new laws as part of its plans "to stop organised immigration crime and protect the integrity of [the UK’s] borders".

Under the new legislation, businesses will be required to do employment checks when hiring ‘gig economy’ and zero-hour workers in sectors including construction.

In addition to fines and potential prison sentences, companies could also face closures and director disqualifications.

Currently, companies using these "flexible arrangements" when hiring are not legally required to check the status of these workers. 

According to the Office for National Statistics, more than a million people in the UK were employed on zero-hour contracts from April to June 2024.

The Home Office said that checks will take "minutes" to complete and will be free using digital ID verification.

Home Secretary Yvette Cooper said: "Under our Plan for Change, we are restoring order to the asylum and immigration system by introducing tougher laws and bolstering enforcement action to tackle illegal working and stopping rogue employers in their tracks.

"Turning a blind eye to illegal working plays into the hands of callous people smugglers trying to sell spaces on flimsy, overcrowded boats with the promise of work and a life in the UK.

"These exploitative practices are often an attempt to undercut competitors who are doing the right thing. But we are clear that the rules need to be respected and enforced."

Cooper added: "These new laws build on significant efforts to stop organised immigration crime and protect the integrity of our borders, including increasing raids and arrests for illegal working and getting returns of people who have no right to be here to their highest rate in half a decade."

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