Key Points
- Criminal Liability: Reform UK promises to introduce a bill under which the bosses of major corporations will be held criminally liable if there are illegal workers employed in their businesses, irrespective of their knowledge about the fact.
- Suggested Penalties: The directors will get a jail term of five years and the organizations will get penalties of 10% of their worldwide annual turnover.
- “Deliveroo Law”: The policy named “Deliveroo law” is particularly aimed at delivery companies and the gig economy companies accused of making money from an undocumented workforce.
- Reporting System: The party suggests a phone line for members of the general public to report illegal working practices in exchange for rewards from the fines collected on successful cases.
- Government’s Response: The Home Office said that the suggestions are just an “empty posturing,” as the current laws enable imposing a fine of up to £60,000 per worker and a prison term of five years on employers.
UK (North London News) August 6, 2026 — Reform UK has unveiled a series of radical policy proposals aimed at eradicating illegal working in the United Kingdom, promising to imprison corporate executives and impose massive financial penalties on firms that hire undocumented migrants. As reported by Tom Ambrose of The Guardian, Reform UK’s home affairs spokesperson, Zia Yusuf, announced the plan during a media conference in Westminster, characterising it as a necessary measure to “stand up for British workers” and protect entry-level job markets. The proposed legislation, which the party has dubbed the “Deliveroo law,” would hold directors of large companies personally responsible for the presence of illegal workers within their supply chains, even if leadership was unaware of the individuals’ immigration status.
Why Is Reform UK Targeting Gig Economy and Delivery Firms?
Reform UK argues that major players in the gig economy and delivery sectors have built business models that rely on the exploitation of illegal labour, thereby undercutting legitimate wages and shutting “young British people” out of entry-level positions.
In a statement provided to the Daily Express and cited by The Guardian, Mr. Yusuf asserted:
“Under a Reform government, Britain will have the harshest penalties in the world for employing illegal migrants. Bosses of companies employing illegal migrants will be sent to prison, and their companies fined 10% of their global revenues”.
The party claims that this model of “personal and criminal liability” would mirror the strict accountability frameworks currently applied to senior managers for financial misconduct under Financial Conduct Authority (FCA) rules.
How Would the Proposed “Public Reporting” System Work?
Beyond executive liability, Reform UK proposes a new enforcement mechanism involving the general public. Mr. Yusuf outlined plans to establish a national phone line for citizens to report suspected illegal working or organised criminal activity.
To incentivise participation, the party suggests that reports leading to successful prosecutions would result in a “reward” for the whistleblower, funded by a share of the fines generated from the offending business. According to the party, this requirement would mandate that police and local authority trading standards teams investigate every report received through the channel.
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How Has the Home Office Responded to the “Deliveroo Law”?
The government has strongly rejected the proposals, describing them as “empty posturing” and insisting that the current legislative framework is already the most robust in British history.
A Home Office spokesperson told the Press Association:
“The Government is already doing much of this. The rest is just empty posturing. We are already closing the loopholes that allow illegal migrants to work in the UK by extending right to work checks to the gig economy and delivery sector”.
The department highlighted that employers who currently breach immigration law already face:
- Fines of up to £60,000 per illegal worker. The Guardian
- Potential business closures and licence revocations. The Guardian
- Criminal prosecution leading to prison sentences of up to five years for those who knowingly employ illegal workers.
Government data suggests that enforcement activity is already at record levels. Figures published earlier in 2026 indicated that illegal working arrests rose by 83% and enforcement raids increased by 77% since the current administration took office. In July 2026, for example, the Home Office arrested 10 workers at the delivery firm Evri who were found to be on immigration bail.
Background: The Evolution of “Right to Work” Enforcement
The debate over illegal working in the UK has intensified as the government seeks to manage net migration levels and prevent the exploitation of vulnerable individuals. Under current UK immigration law (Immigration, Asylum and Nationality Act 2006), employers are required to conduct “Right to Work” checks before employment commences. Failure to do so can result in civil penalties—which were increased in early 2024 from £15,000 to £45,000 per breach, and up to £60,000 for repeat offences.
Throughout 2025 and 2026, the government has moved to expand these obligations. The Border Security, Asylum and Immigration Bill, currently under consideration in the House of Lords, aims to extend mandatory “Right to Work” checks beyond traditional employer-employee relationships to include gig economy workers and independent contractors in sectors such as construction, takeaway food delivery, and warehousing.
This shift reflects a strategic attempt to ensure that platforms using app-based labour are held to the same compliance standards as traditional businesses.
Prediction: Potential Impact on Businesses and Migrant Labour
If adopted, Reform UK’s proposals—specifically the “strict liability” clause—would represent a seismic shift in UK corporate governance.
For Gig Economy Platforms and Large Retailers: Businesses would likely be forced to implement hyper-vigilant, potentially invasive digital identity verification systems across their entire supply chains. The threat of a 10% global revenue fine would make “compliance by design” a matter of existential survival rather than a routine HR task.
This may lead to companies aggressively “de-platforming” contractors or third-party agencies at the slightest suspicion of documentation errors to avoid the risk of executive imprisonment, potentially resulting in mass contract terminations for workers with complex or pending visa statuses.
For the Labour Market: The policy could create a “chilling effect” on hiring. Employers might become increasingly risk-averse, avoiding the recruitment of anyone without a permanent, straightforward right-to-work status to circumvent the threat of criminal liability.
While proponents argue this protects domestic wages, economists often warn that such extreme measures can create labour shortages in essential sectors, including hospitality and agriculture, where profit margins are slim and reliance on flexible labour is high. Ultimately, the proposal signals a future where corporate accountability for immigration compliance is elevated to the same level as anti-money laundering (AML) or anti-bribery regulations.
