How the 10-year settlement rule affects your International Recruitment Strategy

Strategic advice for UK employers hiring overseas workers

The rules around settling permanently in the UK have changed significantly, and if your business recruits international talent, you need to understand what this means for your workforce planning.

What’s changed?

Until recently, most visa holders could apply for permanent settlement (called Indefinite Leave to Remain) after living in the UK for 5 years. Now, that waiting period has doubled to 10 years for many visa routes.

This seemingly simple change has created a ripple effect that impacts how businesses attract and retain international talent.

Why this matters for employers

You might wonder why settlement timelines matter to your business. After all, you’re focused on filling roles, not on your employees’ long-term immigration plans.

But here’s the reality: the path to settlement is a major factor when skilled workers choose where to build their careers.

Competing for talent just got harder

When talented professionals consider job offers, they’re not just thinking about salary and benefits. They’re thinking about their future—and whether they can build a permanent life in that country.

Countries like Canada, Australia and several European nations offer pathways to permanent residence in 2 to 5 years. The UK now requires 10 years for many workers. That’s a significant disadvantage when you’re competing internationally for the same talent.

The risk of losing Your investment

Training and developing employees takes time and money. When you sponsor an international worker, you invest in:

• Relocation costs
• Visa application fees
• Training and onboarding
• Skills development
• Building their knowledge of your business

After several years of this investment, you want that employee to stay. But with a 10-year wait for settlement, talented workers may look elsewhere. Perhaps they’ll move to a country with a shorter pathway, or return home where they don’t face immigration uncertainty.

You could lose skilled team members just as they become most valuable to your organisation.

One mistake can end everything

Here’s what makes this even more challenging: sponsor licence compliance is now more critical than ever.

If you make a reporting error or breach your sponsor duties, the Home Office can revoke your licence. When that happens, your sponsored employees must stop working for you—and may have to leave the UK entirely.

Under the old 5-year system, employees might have been close to settlement, giving them some stability. Now, with a 10-year pathway, even someone who’s been with you for 4 or 5 years still has years to go. One compliance mistake could mean they lose everything they’ve built in the UK.

This creates enormous pressure on both employers and employees.

What this means for your business strategy

If international recruitment is part of your workforce plan, you need to adapt to this new reality.

Make compliance a priority

Sponsor licence compliance cannot be treated as a tick-box exercise anymore. The stakes are too high. You need:

• Clear internal processes for reporting obligations
• Staff training on sponsor duties
• Regular compliance checks
• Quick response systems when issues arise

Small mistakes can now have devastating consequences for your employees and your recruitment programme.

Rethink your long-term planning

Your workforce planning assumptions may need updating. Questions to consider:

• How long do international hires typically stay with your business?
• Are you at greater risk of losing talent to competitors overseas?
• Do you need to adjust retention strategies for sponsored workers?
• Should you factor in higher turnover when calculating recruitment costs?

Being realistic about these challenges helps you plan more effectively.

Explore alternative routes

The 10-year rule doesn’t apply to every visa category. Some routes still offer settlement after 5 years, including:

• Skilled Worker visa (in many cases, depending on individual circumstances)
• Global Talent visa
• Innovator Founder visa
• Some family and other immigration routes

It’s worth understanding whether any of your roles could be filled through alternative visa routes that maintain the shorter settlement pathway. This isn’t always possible, but it’s worth investigating with professional advice.

Be transparent with candidates

Honesty matters. When recruiting internationally, be clear about:

• What visa route you’re offering
• How long the settlement pathway is
• What compliance obligations exist
• What support you provide throughout the process

Candidates appreciate transparency, and it helps them make informed decisions about their future.

The bigger picture

These changes reflect a broader shift in UK immigration policy. While the government still recognises the need for international talent in many sectors, the pathway to permanent residence has become longer and more complex.

For businesses, this creates both challenges and responsibilities. You’re not just managing employees—you’re managing people’s long-term futures in the UK.

Getting the right support

Navigating international recruitment strategy in this new environment requires careful planning and expert knowledge. We regularly support businesses who are:

• Reviewing their recruitment strategies in light of policy changes
• Strengthening sponsor licence compliance systems
• Exploring alternative visa routes for different roles
• Managing workforce planning with settlement timelines in mind

If you’re unsure how these changes affect your business, or you want to review your approach to international recruitment, professional advice can help you stay competitive while managing risk.