Government plans to expand right to work checks – What SMEs need to know

The government is planning to tighten the rules around right to work checks, and if you hire freelancers, contractors, or agency staff, this could affect you.

At the moment, these checks only apply to employees and apprentices. But with businesses increasingly relying on flexible and freelance models, the government wants to expand the checks to cover a wider range of working arrangements, including the self-employed and gig workers.

What’s changing?

Right now, employers can face serious penalties, including fines of up to £60,000, for hiring someone who doesn’t have the legal right to work in the UK. However, if you carry out the correct checks before someone starts, you’re protected from liability.

Currently, those checks are only required for direct employees and apprentices. That is expected to change soon.

The proposed new rules would apply to:

• Freelancers and self-employed individuals
• Contractors and subcontractors
• Agency temps
• Workers hired via online platforms such as delivery or care apps
• Substitutes hired to complete work on someone else’s behalf

In short, if your business brings in people who are not on your payroll but still carry out work for you, you may soon need to check their right to work in the UK.

Why is the government making this change?

There are a few key reasons for the proposed update:

• To create fair competition. Businesses that use contractors or gig workers should not be able to avoid the legal checks required for employees.
• To reduce illegal working. Stronger checks will make it harder for people without the right to work in the UK to find employment.
• To protect workers. Clearer rules and consistent checks can help reduce exploitation and ensure fair treatment.

Who will this affect most?

Industries that rely heavily on flexible or freelance labour are likely to feel the biggest impact. These include:

• Construction, where self-employed subcontractors are common
• Hospitality, where agency staff often help fill shifts at short notice
• Gig economy businesses, such as delivery or care platforms
• Companies that allow workers to send substitutes in their place

If you operate in one of these sectors, it is a good idea to start reviewing your practices now.

What happens next?

These changes are not law just yet. The Bill is still moving through Parliament. Once it is passed, there will be a consultation period, followed by new guidance and a statutory Code of Practice to help businesses understand their responsibilities.

That said, now is a great time to get ahead. Start reviewing your hiring process and make sure you have a clear way to check and record someone’s right to work before they start.

Need help?

We know running a business involves a lot of moving parts, and staying on top of legal changes can be difficult.

That is where SafeHR comes in. Our experienced employment law experts offer practical guidance to help you stay compliant, and our easy-to-use software supports you in carrying out right to work checks and storing documents securely.

It is a simple and stress-free way to keep your business protected.