Yvette Cooper, Home Secretary, has recently confirmed that the government plans to extend the UK’s Right to Work scheme to include self-employed contractors.
Every employer in the UK must undertake a right to work check to secure a statutory excuse to an illegal working civil penalty being imposed. If imposed, an illegal working civil penalty could be up to £60,000 per worker working illegally, so undertaking compliant right to work checks is very important.
For self-employed workers, at present, UKVI right to work guidance confirms that it is only employers that hold a sponsor licence who need to undertake right to work checks, meaning employers who do not hold a sponsor licence don’t need to undertake a right to work check on self-employed workers. Guidance states:
“Where the worker is not your direct employee (for example, if they’re self-employed), you are not required to establish a statutory excuse. However, you must still carry out these checks (and retain evidence you have done so) if you are a sponsor licence holder and are sponsoring the worker to ensure compliance with your sponsor duties.”
On Sunday 30 March 2025, Yvette Cooper confirmed that the requirement to undertake a compliant right to work check will be extended, and that any company who engages self-employed contractors to carry out work on their behalf must carry out a right to work check on the casual worker. If a right to work check isn’t undertaken and the contractor is found to be illegally working, the company could then be liable to an illegal working civil penalty.
During her interview with the BBC, Yvette Cooper confirmed that the current right to work system is not impacting the gig economy (the labour market consisting of casual work and short-term contracts). She is hoping that further right to work obligations, combined with increased immigration enforcement and sponsorship compliance visits, will help to prevent illegal working and reduce promises of illegal work from criminal gangs who arrange illegal border crossings.
The extension of the right to work system is currently going through parliament via the Border Security, Asylum and Immigration Bill. The Bill has passed through the House of Commons and is currently being reviewed by the House of Lords. At present, we do not know exactly when the bill will be passed and will become law, but it is important that companies engaging contractors in the UK look out for further information relating to the implementation of the right to work changes involving casual workers.
