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Tuesday, March 10, 2026

Earned settlement proposals: what employment law risks will these present for Skilled Worker sponsors? - Lewis Silkin LLP

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The government is considering changes to settlement eligibility that would dramatically change both the qualification criteria and how long it takes. As Skilled Worker sponsors think about how to respond to these changes, we look at the potential employment law risks in the short and longer term.

Sponsorship allows non‑British and non‑Irish nationals to work in the UK. Under the Skilled Worker route, a licensed organisation sponsors an individual for an eligible role, which involves taking on specific compliance duties and bearing significant costs over the life of the permission. At the moment, five years of permission under this route typically costs around 14,000 where the sponsor is medium or large (although there are often additional costs).

Under the current system, many sponsors plan around a relatively predictable path, usually five years, to “settlement”. This is the point at which the individual is granted settlement and no longer needs to be sponsored. Sponsorship obligations and immigration‑related costs (such as the Immigration Skills Charge and Immigration Health Surcharge) fall away as soon as an individual achieves settlement.

How will the process change?

At the moment, settlement depends partly on time spent in the UK, with additional requirements depending on the immigration route. For Skilled Workers, the time must have been spent in qualifying routes, the sponsor must still be licensed and must confirm ongoing work and salary arrangements above set...



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