Illegal working in the spotlight: What employers need to know

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The government has announced a new criminal offence under the proposed Border Security, Asylum and Immigration Bill (Borders Bill), targeting those who encourage illegal working which is part of a broader crackdown on irregular migration and unlawful employment practices.

A new criminal offence: encouraging illegal working

The new offence is aimed at disrupting the online promotion of illegal employment, such as:

  • Social media posts or website listings offering jobs to individuals without the legal right to work in the UK
  • Adverts for roles or false employment opportunities designed to exploit undocumented migrants

Those found guilty could face up to five years in prison and a large fine.

The focus is clearly on criminal actors, including people smugglers and rogue recruiters but legitimate businesses should still take note. Even indirect involvement in facilitating illegal work, whether knowingly or through poor due diligence, could expose employers to reputational and legal risk.

What’s next: extending right to work checks

Alongside this, we’re awaiting final wording in the Borders Bill that is expected to expand right to work obligations. As currently drafted, these would apply not just to employees, but also to:

  • Contractors
  • Freelancers
  • Platform or gig economy workers, and
  • Anyone engaged via informal or non-traditional arrangements

This means that businesses may soon face liability for civil penalties (up to £60,000 per illegal worker) even where there is no formal employment contract in place. If passed, this will mark a significant shift in employer responsibility particularly for sectors relying on outsourced, flexible or casual labour.

What employers should do now

While the new offence and the extended right to work provisions are not yet in force, the direction of travel is clear: the government is tightening the net around illegal working.

Employers should:

  • Audit all existing right to work procedures, including those used by subsidiaries, contractors, or third-party labour providers
  • Reassess the status of non-payroll workers, especially freelancers or gig workers who may soon fall within scope; and
  • Train HR and compliance teams to spot and escalate risks early

 


How can we help?

We are monitoring the Borders Bill closely and advising clients across all sectors on how to prepare for the changes. If you have any concerns about your exposure or your current practices, we’re here to help.

Get in touch