Redefining employer liability: The UK’s Border Security, Asylum & Immigration Bill 2025 and the new era of immigration compliance

At a glance

• The UK government is introducing the Border Security, Asylum and Immigration Bill 2025 to expand immigration compliance obligations to include agency, subcontractors, gig economy, and casual workers.
• Employers will face significant new responsibilities and potential penalties, including fines up to GBP45,000 per breach and possible criminal charges.
• Existing agreements with agencies and subcontractors must be updated to clearly allocate responsibility for right to work checks.
• These reforms aim to address exploitation risks in modern labour models and are part of a wider border security strategy.
• The Home Office plans consultation and a lead-in period, targeting implementation in 2026–27.

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Earlier this year, we published an article on the expansion of the illegal working regime to the gig economy. At that time, the government had signalled its intention to close compliance gaps in modern labour models.

Since then, the Border Security, Asylum and Immigration Bill 2025 has progressed through Parliament, and the latest updates confirm that these proposals are moving closer to reality. This follow-up explores what has changed, what remains uncertain, and what employers should do now.

The UK government is set to introduce one of the most significant changes to immigration compliance in recent years through the Border Security, Asylum and Immigration Bill 2025. The reforms will extend the civil penalty regime for illegal working beyond traditional employment relationships, capturing:

• Agency workers.
• Subcontractors.
• Gig economy workers.
• Casual and zero-hours workers.

This means that businesses engaging labour through non-standard models will soon face the same compliance obligations as direct employers. Failure to comply could result in civil penalties of up to GBP45,000 per breach (rising to GBP60,000 for repeat offences), alongside potential criminal liability for deliberate breaches.

Why is this happening?

The government has identified that modern labour models create compliance blind spots. Gig platforms, subcontracting chains, and agency arrangements have been exploited by rogue operators to facilitate illegal working and, in some cases, modern slavery. The reforms aim to:

• Level the playing field by applying consistent compliance obligations across all labour models.
• Protect vulnerable workers from exploitation.
• Strengthen enforcement against organised immigration crime.

Hansard debates confirm that these measures are part of a broader strategy to enhance border security, including expanded enforcement powers, new offences targeting facilitators of illegal working, and greater data-sharing between agencies.

What does this mean for employers?

Liability beyond direct employment

Businesses may be treated as an 'employer' for immigration purposes even without a direct contractual relationship. This includes end-user businesses and platform operators.

Contractual risk management

Existing agreements with agencies, subcontractors, and platforms will need to be reviewed and updated to include:

• Clear allocation of responsibility for right to work checks.
• Indemnities for non-compliance.
• Audit rights to verify compliance.

Operational changes

• Onboarding processes must be adapted to cover all worker types.
• Digital right to work solutions should be implemented for consistency and auditability.
• Training for HR, procurement, and compliance teams will be essential.

Employment law implications

Increased scrutiny of gig and casual work arrangements could reignite debates on employment status. Businesses must ensure compliance measures do not inadvertently create obligations that suggest an employment relationship.

When will this happen?

The Home Office is expected to consult on enforcement and provide a lead-in period, with implementation likely in 2026–27. However, we have seen a significant increase in compliance action from the Home Office this year, with contractors being targeted at client sites. As such, the recommendation at this stage would be for employers to review their existing contractor arrangement, ensure relevant safeguards are introduced in future contracts, and ensure preparedness for future legislative changes.