LONDON – The authorities in the United Kingdom have further tightened the rules regarding employment for those engaged with the gig economy.
A statement issued by the UK Home Office on Sunday states that companies hiring employees in the gig economy will now be legally required to carry out checks confirming that anyone working in their name is eligible to work in the country.
The fresh changes mean that for the very first time, employment checks will be extended to cover businesses hiring gig economy and zero-hours workers in sectors like construction, food delivery, beauty salons and courier services.
The current practice is that companies are not legally required to check the status of workers; however, the fresh employment check – which the authorities believe takes a few minutes – would now be extended.
The government has also warned that if the businesses fail to carry out these checks, they will face hefty penalties already in place for those hiring illegal workers in traditional roles, including fines of up to £60,000 per worker, business closures, director disqualifications and potential jail term of up to 5 years.
The authorities have clearly mentioned companies like Deliveroo, Just Eat and Uber Eats who already carry out checks to ensure their delivery riders are eligible to work, urging other firms in the market to do the same.
Commenting on the change, Home Secretary Yvette Cooper said that under the Plan for Change, the government is 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.
The Home Office has clarified that the extended checking is swift and the Home Office provide this free of charge, with businesses able to utilise digital ID verification technology to support the process.