UK ILR New Rules for Skilled Worker Visa

For Skilled Worker visa holders in the UK, securing Indefinite Leave to Remain (ILR) is the critical next step toward long-term settlement and stability. ILR provides permanent residence rights, enabling individuals to live, work and study in the UK without immigration restrictions. It also represents a significant milestone for employers who rely on retaining international talent and ensuring compliance with sponsorship obligations.

What this article is about: This guide explains the current ILR rules that apply to Skilled Worker visa holders. It sets out what ILR is, how it operates within the Skilled Worker route and the recent changes to settlement criteria that affect employees and sponsoring employers. It examines eligibility and compliance requirements, the application process, evidence standards and the impact on dependants. The aim is to provide clarity for both employers and employees navigating the pathway from temporary sponsored work to permanent residence in the UK.

Section A: Understanding ILR and Skilled Worker Visa

Indefinite Leave to Remain (ILR) is the UK’s settlement status that allows a foreign national to live in the country permanently, free from immigration control. It is the gateway to stability, giving individuals the right to work, study and live without time limits, and providing a path to British citizenship for those who later wish to naturalise.

For Skilled Worker visa holders, ILR represents the natural progression from temporary sponsored employment to permanent residence. The Skilled Worker visa route, introduced in December 2020 to replace Tier 2 (General), is the UK’s main immigration pathway for overseas workers under employer sponsorship. It is a points-based visa, requiring applicants to show they have a licensed sponsor, a qualifying role meeting skill and salary thresholds, and English language ability.

ILR eligibility under this route is primarily based on five years of lawful residence in the UK. Applicants must also meet other requirements such as continuous residence, salary thresholds at settlement, and the Life in the UK test. While Skilled Worker visa holders already meet English language standards when applying for their visa, at ILR stage the Home Office does not require fresh English evidence if the Skilled Worker visa was granted after demonstrating this requirement. The Life in the UK test, however, remains compulsory.

Employers play a vital role throughout this process. By sponsoring foreign nationals, they take responsibility for immigration compliance, record-keeping and reporting duties. For many employers, supporting staff through to ILR is important for retention, reducing sponsorship costs and strengthening workforce stability.

The significance of ILR is twofold. For employees, it removes the uncertainty and costs of repeat visa renewals. For employers, it provides stability by reducing turnover of skilled staff and lowering compliance risks linked to sponsorship.

Section A Summary

ILR is the settlement stage of the UK immigration system and is particularly important for Skilled Worker visa holders transitioning from temporary sponsorship to long-term residence. It provides security for employees and reduces compliance burdens for employers. Understanding how ILR interacts with the Skilled Worker route is the foundation for applying the new rules effectively.

Section B: New ILR Rules for Skilled Worker Visa Holders

The Home Office has updated the ILR rules for Skilled Worker visa holders as part of wider reforms to the immigration system. These changes reflect the government’s aim to align settlement with economic needs while maintaining firm immigration control. Both employers and employees must understand the requirements to avoid risks at the settlement stage.

The qualifying period for ILR remains five years of continuous lawful residence in the UK. However, the absence rules are strictly enforced. Applicants must not exceed 180 days outside the UK in any rolling 12-month period. Time abroad is only permitted in limited circumstances, such as work-related travel or serious medical reasons, and all absences must be evidenced with supporting documents.

Salary requirements have also been clarified for settlement. At ILR stage, Skilled Worker visa holders must normally be earning at least the general threshold, or the “going rate” for their occupation if higher. As of 22 July 2025, this means a salary of £41,700, unless the applicant qualifies for a lower rate. Lower thresholds apply in specific cases, including:

• £33,400 where the role is on an eligible list or transitional provisions apply
• £25,000 for Health and Care Worker roles
• £31,300 under transitional rules for workers sponsored before 4 April 2024

Applicants must ensure that their current salary meets the threshold applicable to them, and employers must be able to evidence this through payroll and HR records. Salary below the threshold will usually result in refusal unless the applicant falls within a transitional or exempt category.

The English language requirement is treated differently at ILR stage. Skilled Worker visa holders who already satisfied this requirement at the visa application stage do not need to re-submit English evidence. However, all applicants aged 18–64 must still pass the Life in the UK test before settlement can be granted.

Employment continuity remains critical. Applicants must show they are employed by a licensed sponsor in a qualifying role at the date of application. They do not need to have been employed by the same sponsor for the full five years, but any changes of employer during that period must have been authorised through a valid change of employment application. If employment ends before ILR is decided, the application is likely to fail.

Section B Summary

The new ILR rules for Skilled Worker visa holders emphasise strict absence limits, updated salary thresholds, and the requirement for ongoing sponsored employment at the point of application. While English language evidence may not need to be re-submitted, the Life in the UK test remains mandatory. Both employers and employees must plan ahead to ensure compliance with these settlement conditions.

Section C: Eligibility and Compliance Requirements

To qualify for ILR under the Skilled Worker visa route, applicants must meet a strict set of requirements that go beyond simply completing five years of residence. Both employees and employers have responsibilities that, if neglected, can lead to refusal.

The first requirement is continuous residence. Applicants must demonstrate they have lawfully lived in the UK for five years without absences exceeding 180 days in any rolling 12-month period. Each absence must be explained and evidenced, such as through employer letters confirming overseas business travel or medical documentation in cases of illness. Incomplete evidence of absences remains one of the most common causes of ILR refusal.

The second requirement is valid sponsorship and employment continuity. At the time of applying for ILR, Skilled Worker visa holders must be employed by a licensed sponsor in a genuine role that meets the required salary threshold. They do not need to have remained with the same sponsor for the entire five-year period, but any changes of employer must have been made lawfully via a change of employment application. Employers should ensure contracts, payslips and HR records are complete and consistent to avoid compliance risks.

Salary compliance is another key area. Applicants must prove they are being paid at or above the settlement salary threshold or the relevant transitional rate if they qualify. Employers must be able to provide payroll evidence and, where reduced or transitional thresholds apply, justification must be clear and supported by documentation.

English language and Life in the UK requirements also apply. Skilled Worker visa holders who met the English requirement in a prior visa application do not need to resubmit this evidence for ILR. However, the Life in the UK test is mandatory for all applicants aged 18–64, and failure to pass it will result in automatic refusal.

Employers continue to carry sponsorship compliance duties. This includes reporting changes in sponsored workers’ circumstances, maintaining accurate HR records, and ensuring right to work checks are kept up to date. If the sponsor is found to be non-compliant, this can undermine the employee’s ILR application and place the sponsor licence at risk.

Finally, good character and immigration history are considered. Criminal convictions, overstaying or breaches of immigration rules can all lead to refusal. Applicants should disclose relevant information transparently, as concealment can lead to more serious consequences. Employers should encourage staff to seek legal advice where issues exist.

Section C Summary

ILR eligibility for Skilled Worker visa holders requires evidence of continuous residence, compliance with salary thresholds, and valid ongoing sponsorship. Employers play a central role in maintaining accurate records and compliance with sponsorship duties. Both employees and employers must coordinate to ensure the application is well prepared and supported by strong evidence.

Section D: Application Process and Practical Guidance

Applying for ILR as a Skilled Worker requires precision and forward planning. The process is time-sensitive, evidence-driven and subject to strict Home Office scrutiny. Errors, omissions or misjudged timing can lead to refusal.

Timing of the application is critical. Skilled Worker visa holders can apply up to 28 days before completing the five-year qualifying period. An application made earlier than this risks refusal, while a late application may create a break in lawful residence. Employers should encourage staff to track visa expiry dates and settlement eligibility well in advance.

The application process begins with an online submission through the Home Office system. Once complete, applicants must attend a UK Visa and Citizenship Application Services (UKVCAS) centre to enrol biometrics and provide supporting documents. Standard processing can take up to six months, while priority and super priority services may be available for an additional fee.

Evidence requirements are extensive. Typical documents include:

• Valid passport or travel document
• Current biometric residence permit (BRP) or eVisa confirmation
• Proof of continuous residence (e.g. travel records, employer confirmation)
• Employment evidence such as payslips, contracts and employer letters
• Confirmation of salary meeting the settlement threshold
• Life in the UK test pass certificate
• English language evidence if not previously provided (not usually required for Skilled Worker visa holders at ILR stage)

Employers may need to provide supporting letters confirming ongoing employment and salary levels. These should be produced on company letterhead, signed by an authorised HR or compliance officer, and consistent with payroll records.

Common refusal reasons include insufficient evidence of absences, salary below the required threshold, inconsistencies in HR records, and sponsor non-compliance. Applicants should carefully cross-check documents before submission, and employers should ensure sponsorship duties have been met.

Dependants of Skilled Worker visa holders may also qualify for ILR. Adult dependants must usually complete five years of residence in the UK, while children may be eligible sooner if both parents are settled or applying at the same time. Each dependant must meet immigration history and absence requirements, and evidence must be submitted for each application.

Section D Summary

The ILR application process for Skilled Worker visa holders is detailed and evidence-heavy. Success depends on accurate timing, robust documentation and sponsor support. Applicants and employers should work together to minimise risks and ensure compliance with settlement requirements.

FAQs on ILR for Skilled Worker Visa Holders

How long do I need to be on a Skilled Worker visa before ILR?

The standard qualifying period is five years of continuous lawful residence in the UK as a Skilled Worker (which can include time as a Tier 2 (General) or Health and Care Worker where the rules allow aggregation). During this period, absences must not exceed 180 days in any rolling 12-month window and each absence should be evidenced.

Do I need to meet the new Skilled Worker sponsorship salary to get ILR?

No. At settlement, you must meet the settlement salary requirement for ILR, which is generally the higher of the published ILR general threshold or the going rate for your occupation, unless a permitted lower or transitional rate applies (for example, certain Health and Care or protected transitional cases). Sponsorship entry thresholds and ILR thresholds are not always the same; applicants and employers should confirm which ILR figure applies at the date of application and evidence it via payroll records.

Do I need to resubmit English language evidence for ILR?

Usually not. If you previously satisfied the English language requirement in a Skilled Worker, Tier 2 (General) or Health and Care Worker application at the required level, you normally do not need to submit fresh English evidence at ILR. However, the Life in the UK test remains mandatory for most applicants aged 18–64.

Can I change employer during the five years and still qualify for ILR?

Yes, provided each change of employment was authorised through a valid Skilled Worker change of employment application and you maintained continuous leave on the route. At the date you apply for ILR, you must be employed by a licensed sponsor in a genuine role that meets the ILR salary requirement.

What are common reasons ILR applications are refused?

Frequent refusal grounds include: exceeding permitted absences or failing to evidence trips; salary below the applicable ILR threshold; inconsistencies between HR records, contracts and payslips; issues with sponsor compliance; and failing the Life in the UK test. Robust pre-submission checks help mitigate these risks.

What are my options if my ILR application is refused?

Depending on the refusal, you may request an administrative review if there is a case-working error, submit a fresh application addressing the defects, or consider judicial review where appropriate. It is vital to ensure you continue to hold valid leave while you decide next steps.

Can dependants apply for ILR at the same time?

Yes. Adult dependants usually need five years’ continuous residence as dependants. Children can qualify earlier in specific scenarios where both parents are settled or applying at the same time, subject to the rules. Each dependant must meet absence and good-character requirements and provide their own evidence.

Conclusion

The new ILR rules for Skilled Worker visa holders place increased emphasis on absences, salary thresholds, and employment continuity. For employees, ILR provides long-term stability and removes the uncertainty of repeat visa renewals. For employers, supporting staff through ILR reduces sponsorship costs, safeguards compliance and strengthens workforce retention.

The process is evidence-heavy and requires meticulous planning. Applicants must track absences, ensure they meet the applicable settlement salary threshold, and prepare the Life in the UK test in advance. Employers should maintain accurate HR records and remain compliant with their sponsor duties, as non-compliance can undermine employee applications.

By understanding the new ILR framework and preparing thoroughly, Skilled Worker visa holders can secure permanent status in the UK, while employers can protect their sponsor licence and retain key international talent.

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