Employers in the gig economy could potentially face up to five years in prison if they neglect to verify the legal work status of their employees in the UK, as stated by the Home Office.
Additionally, these employers may be disqualified from serving as company directors, have their businesses shuttered, or be subject to fines of £60,000 per worker who is not verified in compliance with the government’s enforcement measures.
Home Secretary Yvette Cooper is expected to appear on Sky News’ morning program Sunday Morning with Trevor Phillips today to discuss this development.
The Home Office has highlighted that there are «thousands» of companies employing gig economy and zero-hour contract workers that are not legally mandated to confirm their eligibility to work in the UK.
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The gig economy refers to a work arrangement where tasks are assigned on a short-term or per-job basis in sectors like construction, food delivery, beauty salons, and courier services.
Notably, food delivery services such as Deliveroo, Just Eat, and Uber Eats operate under this model of employment.
However, these three companies already voluntarily conduct checks to ensure that their delivery personnel are authorized to work in the UK.
The Home Office has now mandated that all employers hiring gig economy or zero-hour contract workers must carry out these essential checks, which can be completed in a matter of minutes.
This amendment to the Border Security, Asylum, and Immigration Bill aims to create a fair playing field for the majority of ethical companies that adhere to the regulations, according to the government department.
The Home Office has confirmed that these checks will be provided at no cost and that cracking down on illegal employment is a key component of the government’s strategy to enhance the overall immigration system.
This initiative is also intended to disrupt human traffickers who lure migrants with false promises of job opportunities, the Home Office added.
Ms Cooper emphasized, «Ignoring illegal employment facilitates human traffickers who exploit vulnerable individuals by offering work and a future in the UK under false pretenses.
«These unethical tactics are often used to undermine law-abiding competitors. However, it is imperative that regulations are upheld and enforced.»
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Simultaneously, the government is gearing up to host a global summit in the UK to address the challenges posed by human trafficking networks.
Ministers and enforcement officials from 40 countries will convene in London over Monday and Tuesday to deliberate on international collaboration, trafficking routes, illicit finances, and online advertisements promoting perilous journeys.
Countries including Albania, Vietnam, and Iraq – origin points for migrants heading to the UK – will participate in the discussions alongside France, the US, and China.
The government will also grant law enforcement agencies counter-terrorism powers to combat human trafficking syndicates as part of the bill amendments.