The gig economy has fundamentally transformed the way many people work in the UK. The CIPD estimates that just shy of half a million people work in the gig space. From private hire drivers and food delivery riders to cleaners and tradespeople, flexible, on-demand labour has become a mainstay of the modern workforce. However, with this flexibility also comes complexity, especially regarding employment law and compliance. Following a regulatory change, one area that’s recently gained increased attention is the introduction of Right to Work (RTW) checks for gig economy workers.
The Regulatory Shift: Why Right to Work Checks Matter More Than Ever
Models that may previously have been based on workers being self-employed have potentially allowed for fast onboarding and minimal bureaucracy but also left possible compliance gaps, especially around verifying a worker’s legal status in the UK.
In response to growing concerns about illegal working, exploitation, and lack of oversight, the UK government has decided to tighten regulations. Platforms that engage workers under the guise of “independent contractors” are now increasingly expected to verify that these individuals are legally allowed to work in the UK.
On 30th March 2025 the Home Secretary, Yvette Cooper, announced plans to expand the range of companies that will have to carry out Right-to-Work checks, to include the gig economy and zero hours contracts and all workers (e.g., contractors). Although the implementation date and the scope of the announced changes are yet to be confirmed, it would seem prudent to prepare for these changes. Where these businesses fail to carry out these checks, they will face the same penalties already in place for those hiring illegal workers in traditional roles… Currently, employers are required to conduct a right to work check in accordance with the UK Home Office guidance before employing someone. This allows the employer to establish a statutory excuse against liability for a penalty:
What Are Right to Work Checks?
Right to Work checks are legal requirements that employers in the UK must carry out to ensure that all employees have the legal Right to Work in the country. Traditionally, these checks have been a standard process in employee onboarding.
Why Now?
A few key developments have driven the focus on Right to Work checks in the gig economy:
- Immigration enforcement: The Home Office has stepped up its focus on illegal working, and digital RTW checks are now more accessible than ever thanks to tools like the Identity Document Validation Technology (IDVT).
- Reputation and compliance risks: Companies found to be engaging individuals without proper RTW checks may face penalties and potential reputational damages, pushing platforms to be more proactive.
With digital Right to Work checks now a legal expectation, and the potential expansion of requirements for employers, it’s never been more important to partner with an experienced screening provider who understands the gig economy’s pace and complexity. At First Advantage, we’ve been closely tracking these changes and helping businesses adapt. As an employment screening provider, we understand the challenges and opportunities that come with this new era of workforce compliance.
What Does This Mean for Gig Platforms?
In the light of the latest development mentioned above, Gig platforms operating in the UK may wish to consider their UK right to work program. Even when workers are classified as self-employed, platforms may still be held responsible for due diligence. Many platforms are now:
- Incorporating digital ID checks during sign-up.
- Using third-party compliance providers to handle verification.
- Updating terms of service to reflect compliance responsibilities.
- Providing training and resources to ensure workers understand their legal obligations.
Looking Ahead
As the compliance landscape continues to evolve, those operating in the gig economy must continue to adhere to legal obligations. Platforms that adapt to the new regulatory landscape are more likely to avoid facing legal battles, financial penalties, or loss of trust from customers and employees alike.
The introduction of Right to Work checks in the UK gig economy is more than a regulatory shift; it’s an opportunity for gig businesses (who don’t already do so) to embrace more robust screening programs and to create safer environments for their workers and platform users. At First Advantage, we believe that compliance doesn’t have to come at the cost of flexibility. With the right screening partner, gig platforms can continue to grow and innovate without compromising on responsibility.
