Britain is about to drop a massive compliance headache on companies that use gig workers and freelancers, and most business owners have no clue it's coming. The government wants to extend right-to-work verification rules to cover casual labor across industries like construction and food delivery, with penalties hitting £60,000 per unauthorized worker if companies mess up the paperwork.
The proposal is buried in a consultation that closed recently, and small businesses are getting blindsided since they typically lean hard on flexible staffing arrangements. One supplement brand founder who pulled in a million in revenue this year said the extra administrative burden would be rough since she operates with just freelancers backing her up. Legal experts are warning that some employers might bail on contractor relationships entirely to dodge the compliance risk, and the government is positioning this as a crackdown on illegal immigration after enforcement teams grabbed over 170 delivery drivers working without authorization.
The proposal is buried in a consultation that closed recently, and small businesses are getting blindsided since they typically lean hard on flexible staffing arrangements. One supplement brand founder who pulled in a million in revenue this year said the extra administrative burden would be rough since she operates with just freelancers backing her up. Legal experts are warning that some employers might bail on contractor relationships entirely to dodge the compliance risk, and the government is positioning this as a crackdown on illegal immigration after enforcement teams grabbed over 170 delivery drivers working without authorization.