Short-term employment permits extended as population regime reviewed and backlog bites

Short-term employment permits extended as population regime reviewed and backlog bites
  • Short-Term Employment Permits extended from three years to three years and nine months with immediate effect
  • Extension available to STEP holders reaching their cap between April 2026 and 31st December 2027
  • Change provides flexibility to employers while population policy review is completed and permit backlog is addressed
  • 79 permits currently under extension expiring 31st January may now be eligible for full extension
  • Committee ruled out four-year permits due to settlement eligibility risks but responded to industry feedback on processing backlogs
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Home Affairs has agreed to immediately extend Short-Term Employment Permits from three years to three years and nine months.

The extension will be available to STEP holders who reached, or will reach, their three-year cap between April 2026 and 31st December 2027. Permit holders who meet these criteria can now apply for the nine-month extension.

The Committee said the extension has been introduced to provide employers with greater flexibility whilst a wider population policy review is undertaken. That review is expected to be completed by the end of next year.

The timeframe also aligns with the Committee's recovery strategy for the Population Management Office, which is expected to be stabilised during 2027, bringing greater certainty around permit processing times.

In recent weeks, the Committee explored extending STEPs from three years to four years. However, officials concluded that extending to a full four years or longer would likely mean a greater risk of short-term permit holders reaching a point where they may become eligible for settlement due to their length of residency or on human rights grounds.

Following extensive feedback from industry, the Committee agreed the additional nine months could be added to STEP roles, recognising that current permit processing backlogs in population management have affected businesses' ability to forward plan.

Earlier this year, the Committee implemented a shorter-term extension to allow STEP holders to remain on the island until January 2027. Currently, 60 permits are benefitting from that extension, with a further 19 pending approval.

This means 79 permits under extension are due to expire on 31st January. Some of these permits will now be eligible for the full extension to three years and nine months.

Deputy Marc Leadbeater, President of Home Affairs, said: "I'm very sympathetic to the challenges facing employers, particularly in sectors like tourism and hospitality which are seeing excellent growth in visitor numbers but are struggling to secure enough staff to meet the demand. It's a challenge in other areas of the economy too."

He added: "The Committee recognises the importance of collaboration with the business community and how this can assist in shaping policy.

"The recent business feedback has very much informed this 9-month extension policy, and going forward their input will be essential as we carry out the wider review and work to get population management operations back on track.

"However, Committee remains of the view that a four-year permit represents an immigration red line. This extension policy allows us to have this conversation as part of the review and whilst we get population management operations back on track."

Deputy Leadbeater said the Committee will be looking at how to improve the regime whilst balancing business need, community expectations and immigration responsibilities.

"It's a question of identifying the right changes that will ensure our borders remain secure, we attract the right workers for the relevant roles, and we make that as straightforward a process as possible for employers. I'm very hopeful the review of the regime will help us identify those opportunities, and we'll work with employers throughout," he said.

Q&A

Q: How long will Short-Term Employment Permits now last?
A: Short-Term Employment Permits have been extended from three years to three years and nine months. The nine-month extension is available to STEP holders who reached or will reach their three-year cap between April 2026 and 31st December 2027.

Q: Why didn't the Committee extend permits to four years?
A: The Committee concluded that extending to a full four years or longer would likely mean a greater risk of short-term permit holders reaching a point where they may become eligible for settlement due to their length of residency or on human rights grounds. The Committee views a four-year permit as an immigration red line.

Q: How many people are currently affected by the existing extension?
A: Currently 60 permits are benefitting from the earlier extension implemented this year, with a further 19 pending approval. This means 79 permits under extension are due to expire on 31st January, and some of these will now be eligible for the full extension to three years and nine months.