Migrants are exploiting “legal loopholes” to secure jobs with some of the UK’s largest delivery companies, MPs have been informed. Nick Timothy, a former Home Office adviser and Downing Street chief of staff who is now a Conservative MP, cautioned that takeaway platforms Just Eat and Deliveroo, ride-hailing service Uber, and retail giant Amazon have all been associated with widespread labour fraud and visa misuse by contractors.
According to Timothy, migrants are “renting rider accounts” for as little as £70 per week through a loophole known as substitution clauses, which allows them to transfer their delivery tasks to others. He also highlighted that messaging apps are being used to exchange information and help individuals “evade Home Office immigration raids.”
West Suffolk MP Nick Timothy informed parliamentarians that the UK has 4.7 million gig economy workers, including 120,000 officially registered riders working for Uber Eats and Deliveroo, two of the country's largest delivery platforms.
“For years, reports have surfaced about widespread labour fraud and visa abuse involving contractors linked to these companies,” he said.
Citing figures from Transport for London, Timothy noted that between late 2018 and early 2019, 14,000 fraudulent Uber journeys were recorded. He further stated that Amazon and Just Eat, alongside Uber and Deliveroo, have been associated with labour market violations.
He explained that much of this exploitation occurs due to a legal loophole created by substitution clauses, which allow account holders to assign deliveries to others.
Timothy also highlighted that last month, Deliveroo dismissed over 100 riders for sharing their accounts with illegal migrants. However, he warned that this represents just a fraction of the problem, as insurance companies have reported unauthorised riders being involved in motor and personal injury claims.
“This is happening because undocumented migrants are renting rider accounts for between £70 and £100 per week,” he added.
To tackle the issue, Timothy proposed an amendment to the Government’s Employment Rights Bill, which would require food, drink, and postal delivery companies to submit an annual report of their registered riders to the Government.
Mr. Timothy urged that company directors be held legally accountable for ensuring that all riders and drivers "take responsibility for who works for them."
Explaining how the scheme operates, he stated, "Illegal migrants are using social media apps on a large scale to rent accounts and exchange information."
He highlighted that individuals working illegally for major companies often endure long hours for lower wages, uncertain of when they will receive their final paycheck. Additionally, he noted that they use group chats to share details and avoid Home Office immigration raids.
“We don’t even have an accurate count of how many substitute riders are working for these companies at any given time,” he added.
Addressing MPs, Timothy criticized these businesses for "privatizing profits while shifting the costs onto society." He referenced a Home Office crackdown on illegal working in April 2023, during which 60 moped delivery drivers were arrested across London and southern England.
The former Home Office advisor to Theresa May stressed that companies like Amazon, Uber, and Deliveroo must conduct proper due diligence to verify that all their riders are who they claim to be and have the legal right to work in the UK.
"Implementing this change would help curb labour exploitation, enhance community safety, and promote a fairer job market," he said.
In response, Business Minister Justin Madders acknowledged the risks and stated that the government is collaborating with Dame Angela Eagle, Minister for Border Security, to tackle illegal employment in the gig economy and address the role of substitution clauses in facilitating it. "We will continue working closely with the Home Office on this matter," he assured.
A Deliveroo spokeswoman emphasized the company's commitment to preventing illegal work, stating, “Deliveroo has been a leader in implementing security measures for our platform. We were the first to introduce direct right-to-work checks, a registration process, daily identity verification, and now additional device checks for riders, including substitutes. We take our responsibilities seriously and will continue to strengthen our safeguards.”
An Uber Eats spokesperson echoed this stance, saying, “Uber Eats is dedicated to combating illegal employment. All couriers using our app, whether the account holder or their substitute, must pass checks to verify their legal right to work in the UK. Any unlawful or unsafe conduct violates our community guidelines, and we will take action, including permanent removal from the app.”
Amazon also stated that it verifies the right-to-work documentation of all substitutes engaged through its Flex delivery program.