What is Indefinite Leave to Remain?
Indefinite Leave to Remain (ILR), also commonly referred to as settlement or permanent residence, is an immigration status that grants a person permission to live, work, and study in the United Kingdom permanently. Once an employee obtains this status, they are no longer subject to immigration time restrictions and no longer require an employer to sponsor their visa. For businesses, understanding how settlement works is crucial for long-term workforce planning, especially when employing staff on the Skilled Worker (SW) and Global Business Mobility (GBM) routes.
Settlement Under the Skilled Worker Route
The Skilled Worker visa is designed as a direct pathway to permanent settlement in the United Kingdom.
The 5-Year Continuous Qualifying Period
To be eligible to apply for ILR, a sponsored employee must have spent a continuous period of 5 years living and working lawfully in the United Kingdom. This time must be spent on an eligible visa route, such as the SW route or its predecessor, the Tier 2 General route. Crucially, the employee’s most recent visa before applying for settlement must be a Skilled Worker or Tier 2 General visa.
In addition to the time requirement, the applicant must pass a ‘Life in the UK Test’ in the United Kingdom test to demonstrate their understanding of British culture and society. Interestingly, they do not need to reprove their English language skills during the settlement application, as they already met this requirement when they initially applied for their SW visa.
Salary and Sponsorship Requirements
When an employee reaches the 5-year mark and applies for settlement, their employer still plays a vital role. The business must still hold a valid SW sponsor license and must provide a formal confirmation stating that they require the employee to work for them for the foreseeable future.
The employer must also guarantee that the worker will be paid at least a specific minimum salary for the foreseeable future. Under the standard rules, this salary must be at least 41,700 pounds per year, or the specific going rate for their exact job, whichever is higher. The going rate is the minimum standard salary set by the government for a particular profession. However, there are exceptions where lower general salary thresholds apply. For instance, the minimum salary required for settlement can be reduced to 33,400 pounds, 31,300 pounds, or even 25,000 pounds. These discounts apply if the worker was sponsored for a job listed on the Immigration Salary List, holds a relevant PhD, works in specific health or education roles, or qualifies under certain transitional rules.
The Global Business Mobility Routes and Settlement
Temporary Assignments versus Permanent Settlement
Unlike the SW route, the GBM routes are strictly designed for temporary work assignments. These routes, which include the Senior or Specialist Worker visa and the United Kingdom Expansion Worker visa, do not lead to Indefinite Leave to Remain. Furthermore, any time a worker spends living in the United Kingdom on a GBM visa will not count towards the 5-year qualifying period required for settlement, even if the individual later applies to settle under another eligible visa route.
Long-Term Strategies for Overseas Workers
Because the GBM routes are intended for temporary transfers, workers are subject to strict maximum time limits on how long they can stay. In most cases, a worker can remain in the United Kingdom for a cumulative total of 5 years in any 6-year period. An exception exists for high earners, which are defined as those guaranteed a gross annual salary of at least 73,900 pounds. These high earners can stay for a cumulative total of nine years in any ten-year period.
If a business decides they wish to permanently retain a GBM worker in the United Kingdom, they must carefully plan a change in their immigration strategy. The worker will have to switch from their temporary GBM visa to a route that allows settlement, such as the SW route. The immigration rules allow individuals in the United Kingdom to switch to the Skilled Worker route, provided they meet all the relevant requirements, such as demonstrating English language proficiency. It is important for employers to remember that once the worker successfully switches to the SW route, their 5-year qualifying clock for ILR starts from zero, as their previous time spent on the GBM route cannot be counted towards settlement.Â
Proposed "Earned Settlement" ILR Reforms
This is something to look out for, as the Home Office is planning major changes to the settlement system by introducing an “Earned Settlement” model. Under these proposals, the standard qualifying period for Indefinite Leave to Remain is set to increase from 5 years to 10 years. A worker’s waiting time will be increased or decreased based on their individual economic contribution. For example, high earners could see their waiting period reduced by 5 to 7 years, while medium-skilled workers could face a 15-year baseline wait to settle. Additionally, the government plans to introduce a new mandatory requirement that applicants must earn a minimum of £12,570 a year for 3 to 5 years to qualify for settlement.
Conclusion
Navigating the transition from a sponsored visa to ILR requires careful foresight from both the employer and the employee. While the SW route offers a clear, 5-year pathway to permanent residence, provided strict salary and continuous residence requirements are met, the GBM routes are explicitly temporary and offer no direct route to settlement. Businesses relying on temporary overseas transferees must proactively decide whether to return these workers to their home countries at the end of their maximum permitted stay or support them in switching to a SW visa to begin their journey toward permanent settlement in the United Kingdom. By understanding the distinct rules governing these two primary service lines, employers can better manage their international talent and ensure compliance with the United Kingdom’s immigration laws.
