Company bosses hiring in the gig economy could face up to five years in prison if they fail to check if their employees can legally work in the UK, the Home Office has said.
The employers could also be banned from operating as company directors, have their business closed down, or be hit with fines of up to £60,000 for every worker who isn’t checked as part of the government crackdown.
The announcement comes as Home Secretary Yvette Cooper prepares to speak to Sky News breakfast show Sunday Morning with Trevor Phillips today.
Her department has said “thousands” of companies which hire gig economy and zero-hour contract workers are not legally required to check whether they have the right to work in the UK.
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The gig economy refers to an employment arrangement where work is assigned on a short-term or job-by-job basis in sectors such as construction, food delivery, beauty salons and courier services.
Food delivery firms Deliveroo, Just Eat and Uber Eats all use this approach to employment.
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However, all three of those employers already voluntarily carry out checks to ensure their delivery riders are eligible to work in the UK.
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The Home Office has now announced that all employers who hire gig economy or zero-hour contract workers will have to carry out these “vital checks” which take “just minutes to complete”.
This amendment to the Border Security, Asylum and Immigration Bill will help “level the playing field for the majority of honest companies who do the right thing”, the government department added.
The Home Office said it will provide the checks free of charge and that “clamping down” on illegal working forms a “critical part of the government’s plan to strengthen the entire immigration system”.
The move is also intended to “undermine people smugglers using the false promise of jobs for migrants”, it added.
Ms Cooper said: “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.”
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Meanwhile the government is preparing to host the first international summit in the UK on how to tackle people-smuggling gangs.
Ministers and enforcement staff from 40 countries will meet in London on Monday and Tuesday to discuss international cooperation, supply routes, criminal finances and online adverts for dangerous journeys.
Countries including Albania, Vietnam and Iraq – where migrants have travelled from to the UK – will join the talks as well as France, the US and China.
The government will also hand counter-terror style powers to police and enforcement agencies to crack down on people-smuggling gangs as part of amendments to the bill.
