Home Secretary Yvette Cooper, in an interview with the BBC on Sunday, has pledged to tackle illegal working within the gig economy by closing existing loopholes.
New measures aim to eliminate unlawful hiring practices, particularly in sectors such as takeaway deliveries, beauty salons, restaurants, car washes, courier services, barber shops, and construction businesses.
Sir Keir Starmer, speaking today at the Organised Immigration Crime Summit in London, highlighted lenient right-to-work policies as a significant driver of illegal immigration, reinforcing the Home Secretary's earlier statement.
"Whilst most companies do the responsible thing and carry outwork checks, too many dodgy firms have been exploiting a loophole to skip this process, hiring illegal workers, undercutting honest businesses, driving down the wages of ordinary working people."
Currently, firms must verify employees' right-to-work status, but self-employed contractors are exempt. Under proposed amendments to the Border Security, Asylum and Immigration Bill, gig economy firms will face the same obligations as regular employers.
Under plans announced on Sunday, the requirement to conduct a test would be extended to self-employed contractors carrying out work on behalf of a company.
Businesses failing to comply will risk significant penalties, including fines of up to £60,000 per illegal worker, unlimited cumulative penalties, potential closure, disqualification for company directors, and prison sentences of up to five years.
Companies will be able to verify worker status quickly and free of charge using the online right to work service.
Source: https://www.gov.uk/government/news/crackdown-on-illegal-working-and-rogue-employers-in-gig-economy
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