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Draft illegal working legislation confirms proposals to extend the illegal working regime to non-employee workers, self-employed contractors and online job matching platforms. Liability for an illegal working civil penalty is also substantially widened. The potential impact of these changes on businesses is huge, and developments should be closely monitored.

A proposed clause was first published on 7 May 2025 as an amendment paper relating to the Border Security, Asylum and Immigration Bill. The clause may be amended before the Bill is passed, but provides a detailed insight into the Government’s intentions to expand the working relationships within the scope of the illegal working regime, and for liability for an illegal working civil penalty to arise in a broader range of circumstances.

What are the expected impacts for businesses?

Broadly, we expect the proposed measures will:

• Require right to work checks to be carried out in a wider range of scenarios;
• Potentially require businesses to adapt their right to work checking processes (if these are revised by the Home Office);
• Significantly expand exposure to receiving an illegal working civil penalty, which may be up to 60,000 per illegal worker;
• Expand the working arrangements to which the illegal working criminal sanction may apply;
• Increase the risk of possible sponsor compliance action up to and including revocation, in cases where a sponsor receives civil penalties;
• Increase the risk of other illegal...

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