The government’s proposal to extend the settlement period for skilled migrants from five years to ten has triggered a fresh look at compliance responsibilities across UK organisations. While the policy is not final, HR teams are already considering how a longer route could reshape everyday processes, increase costs and influence workforce stability.
Longer Sponsorship and Greater Monitoring Demands
Under the current system, HR teams manage sponsorship duties for up to five years. Doubling that period means sponsorship activities would remain active for far longer, increasing the chance of missed updates or incomplete paperwork.
Some organisations are already stretched, and a longer route would mean more time spent checking job duties, tracking work locations and keeping records up to date. Even common adjustments such as flexible working arrangements or revised responsibilities would require continued reporting for twice as long.
Higher Exposure to Compliance Checks
A ten year sponsorship period raises the likelihood of Home Office inspections, which can take place without notice. To manage this risk, employers may need to pay closer attention to:
- Up to date right to work records and evidence that checks were completed correctly.
- Accurate reporting of any change to the migrant’s role, salary or location.
- Clear records of recruitment processes and sponsored worker files that meet audit standards.
For some HR teams this could mean reviewing internal systems and providing additional staff training to keep compliance activity consistent over time.
Financial Pressure and Increased Administrative Work
The financial impact of a longer settlement route may be significant for employers that sponsor several workers. Visa fees, the immigration skills charge and the immigration health surcharge could all add up over a longer sponsorship period. This may require organisations to reconsider budgets or adjust workforce plans if the proposal becomes policy.
Many HR teams already manage high workloads linked to recruitment challenges. By increasing the length of time sponsored workers remain under formal monitoring, the policy could introduce a steady rise in administrative work that affects both HR planning and day to day operations.
To prepare, organisations are reviewing the following:
- Whether existing HR systems can support longer term record keeping.
- If sponsorship responsibilities should be shared across wider teams.
- How growing compliance duties might affect timelines for hiring and internal moves
Retention and Workforce Planning Concerns
A longer wait for settlement may influence whether sponsored workers stay with the organisation or stay in the UK at all. If some decide to leave earlier than planned, employers would face the cost and time of repeating sponsorship activities for new recruits.
Career progression also becomes more complicated. Any change to a role must meet sponsorship rules, so internal moves may take longer to confirm. HR teams may need to build extra steps into planning for restructures, promotions or new responsibilities.
Preparing for What Comes Next
While uncertainty remains, early preparation is essential. Strengthening record keeping, improving reporting processes and communicating clearly with sponsored workers can help employers manage risk and support their workforce through possible change.
If you would like help reviewing your compliance processes or guidance on preparing for potential policy shifts, our HR Hub Plus team is ready to support you.
