UK raises illegal work fines to £60,000: Indian gig workers, students and tech firms face stricter right-to-work checks

The UK has tightened its illegal working rules, increasing the maximum civil penalty for employers to £60,000 per illegal worker and extending liability to businesses operating through subcontractors and online work platforms.

The updated statutory code of practice titled “Code of practice on preventing illegal working: Right to Work scheme for employers” which came into effect in October 2026. Under the new rules, employers face a fine of £45,000 per illegal worker for a first breach, rising to £60,000 for a repeat breach within three years.

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The gigs

The changes are particularly relevant for Indian migrants and international students working in the UK, including those earning through delivery, courier and ride-hailing platforms.

The Home Office has strengthened requirements for online matching services to verify that the person carrying out work is the individual registered with the platform. This includes stricter controls on worker substitutions and account sharing.

Platforms are required to conduct ongoing identity checks, including digital re-verification through registered right-to-work digital verification service providers. This could affect workers who allow another person to use their delivery or work account.

The student jobs

For Indian students, the new requirements also put greater emphasis on documenting term-time work restrictions. Where a student's visa limits the number of hours they can work during term time, employers must obtain and retain the student's academic term and vacation dates for the duration of their studies.

Failure to maintain these records could mean an employer loses its statutory excuse against a civil penalty.

IT, outsourcing

The UK has also expanded liability across subcontracting chains. This is relevant to Indian IT companies, outsourcing firms and other businesses that operate through multiple layers of contractors and suppliers.

Under the extended upstream liability provisions, a main contractor may be held responsible where an illegal worker is engaged by a subcontractor. Businesses will need to ensure that vendor agreements contain right-to-work checking requirements, restrictions on further subcontracting and provisions allowing compliance records to be audited.

eVisa checks

The changes also coincide with the UK's shift towards digital immigration status. Physical Biometric Residence Permits and other forms of physical immigration evidence are being phased out in favour of eVisas. Indian nationals working in the UK will increasingly need to use a Home Office share code so that an employer can check their immigration status online.

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If a technical problem prevents a worker from generating a share code, the employer can use the Home Office Employer Checking Service. A Positive Verification Notice can then be obtained where the worker has the required immigration status.

For Indian workers, keeping their digital immigration records accurate and accessible will therefore become increasingly important when starting or changing jobs.

Fines are not the only risk

The new framework also increases the wider consequences for businesses. Apart from civil penalties, businesses could face measures such as loss of a visa sponsorship licence, director disqualification and closure. Serious cases can also lead to criminal prosecution.

There is some scope for reducing penalties. Employers can receive a £5,000 mitigation discount in certain circumstances if they voluntarily report suspected illegal working or cooperate with Home Office enforcement action. With the higher penalties and wider liability now in force, employers have a stronger incentive to verify workers before they start work and to keep evidence of those checks throughout the employment relationship.