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Innovator Founder · Job creation and settlement

Innovator Founder ILR job creation: what counts as a full-time job?

A payroll showing 5 senior employees is not automatically 5 qualifying jobs. The settlement test turns on settled-worker status, 12 months of employment, paid hours, salary treatment and the founder relying on the result.

Jayesh Jethwa

Reviewed 30 September 2026
15 minute read · 4 primary sources

In this analysis
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Rules and Home Office guidance checked 30 September 2026

Headcount, job titles and annual payroll do not decide the settlement criterion.

This analysis addresses INNF 17.1(f)(vi) and (vii), the definitions in INNF 17.4 and 17.5 and the founder-team restriction in INNF 17.3. It distinguishes the legal requirements from prudent evidence preparation and does not treat a payroll report as conclusive.

The position

What counts as a full-time job for Innovator Founder settlement?

A qualifying job must have existed for at least 12 months and be filled throughout the claimed 12 months by a worker who was settled when the job began. Full-time means an average of at least 30 paid hours a week. A founder may rely on either 10 qualifying full-time jobs, or 5 qualifying full-time jobs each with a mean salary of at least £25,000 a year, gross and excluding allowances.

  • Part-time jobs held by different employees may be combined only if every job relied upon has existed for at least 12 months.
  • The 5-job and 10-job alternatives are 1 job-creation achievement, not 2 settlement achievements.
  • Founders in the same team cannot share the same jobs when each relies on job creation.

A founder employs 7 people. Five earn more than £25,000. The business has created genuine economic activity, but the immigration conclusion does not follow from those facts alone. One employee is on Skilled Worker permission, another obtained settlement after joining, 2 work 24 hours a week, a senior employee's package reaches £25,000 only after allowances and a replacement joined 8 months before the proposed endorsement.

The settlement criterion asks more than a payroll headcount. It asks which jobs existed for 12 months, who filled them, whether those workers were settled when their jobs began, how many paid hours they averaged and, for the 5-job route, whether each job met the salary threshold without allowances.

Job creation is therefore a record-building exercise rather than a snapshot at the end of year 3. The founder, payroll adviser and endorsing body should be able to move from the legal test to an employee-level schedule and then to the contracts, right-to-work evidence, pay records and accounts without changing the story at each stage.

01 / The 2 alternatives

Create 10 qualifying jobs, or 5 qualifying jobs at the salary threshold.

INNF 17.1(f)(vi) is satisfied where the business has created the equivalent of at least 10 full-time jobs for settled workers. INNF 17.1(f)(vii) provides the alternative: at least 5 full-time jobs for settled workers, each with a mean salary of at least £25,000 a year, gross pay and excluding allowances.

The 5-job route is not simply a smaller headcount. Every job must pass the salary condition as well as the status, duration and paid-hours conditions. Four qualifying roles at £35,000 and 1 at £24,500 do not satisfy the wording merely because the average pay across all 5 exceeds £25,000.

Nor can the same workforce be counted under both alternatives as 2 achievements. INNF 17.2 prevents repeated reliance on the same criterion. Settlement still requires a second distinct business achievement and the wider endorsement and personal requirements.

02 / The unit of analysis

The Rules count qualifying jobs, not seniority, titles or recruitment announcements.

There is no requirement that a qualifying employee be a manager, director, graduate or specialist. Seniority may explain commercial value, but it does not substitute for the legal test. An operational role is not excluded merely because it is junior, provided it is genuine paid employment satisfying the published conditions.

A signed offer for a future start, an open vacancy, an outsourced service and an independent contractor do not by themselves show that the business created a qualifying job for a settled worker. The employment relationship, paid hours and duration must be established on the evidence.

For the 5-job route, examine the mean salary of each job. Gross pay is relevant; allowances are expressly excluded. A package described as £27,000 may fail if £3,000 consists of an allowance. The schedule should separate salary from allowances, benefits and reimbursements instead of relying on total employment cost.

10-job route

At least 10 full-time equivalent jobs for settled workers, each satisfying the duration and hours rules.

5-job route

At least 5 such jobs, with each also showing a mean salary of at least £25,000 gross, excluding allowances.

No seniority test

A title does not qualify or disqualify the job; the published legal conditions do.

No double achievement

The 2 alternatives remain 1 job-creation criterion for the 2-achievement settlement test.

03 / The 12-month condition

A role existing for 12 months is not enough if the worker was not employed throughout.

INNF 17.4 requires each job relied upon to have existed for at least 12 months. It also requires the settled worker filling it to have been employed for at least 12 months. The caseworker and endorsing-body guidance describe the worker as remaining employed for the whole period claimed.

That wording matters after staff turnover. A position occupied by Employee A for 6 months and Employee B for the next 6 should not be presented as a qualifying 12-month job merely because the description remained unchanged. The guidance specifically rejects combining 2 shorter jobs in the same position to make 12 months.

The safest schedule works backwards from the proposed endorsement date and identifies an uninterrupted 12-month window for each worker and job. Start and end dates, unpaid gaps, changes in hours and payroll anomalies should be resolved against primary records rather than hidden in a year-end total.

05 / Settled-worker status

The worker must be settled when the job begins, not only when the founder applies.

The Rules require the worker to have been settled when the job started and to remain employed for the whole 12-month period claimed. A later grant of indefinite leave does not retrospectively make earlier employment a qualifying settled-worker job.

A British citizen or person with indefinite leave will commonly meet the relevant status requirement, subject to the evidence. The definition also covers specified categories including people with settled status under the EU Settlement Scheme and certain people on the UK Ancestry route. Nationality alone may not answer the question, and status should not be inferred from payroll or a later share code.

An employee on Skilled Worker permission is not a settled worker merely because the employment is lawful and sponsored. If that employee later settles, identify the date and obtain advice on which later period, if any, can be relied upon. Status evidence should be checked at recruitment and preserved consistently with right-to-work and data-protection duties.

06 / The £25,000 route

Test each job's mean gross salary after removing allowances.

The higher-pay alternative requires a mean salary of at least £25,000 a year for each of the 5 jobs. It does not permit pooling 5 employees to produce an average salary. Calculate each role separately across the period relied upon.

Gross pay does not mean every sum on a payslip. The rule expressly excludes allowances. Reimbursements and benefits should not be relabelled as salary. If base salary changed, show the calculation used to reach the annual mean rather than citing only the latest rate.

The threshold is not permission to pay less than employment law requires, nor is employment-law compliance enough to satisfy the immigration test. INNF 17.4 separately requires compliance with relevant UK legislation, including the National Minimum Wage and Working Time Regulations. Payroll, tax and employment obligations should be reconciled with the immigration calculation.

07 / Evidence architecture

Build an employee-level matrix that reconciles to payroll, banking and accounts.

The Rules do not publish 1 universal document list. A credible file should nevertheless let the endorsing body verify each element without reconstructing the case from unrelated records. Start with a schedule listing the job, employee, start date, status when the job began, claimed period, average paid hours and, where relevant, mean gross salary excluding allowances.

Cross-reference it to employment contracts and variations, status evidence recorded when the job began, RTI submissions, payroll reports, payslips, employer bank payments and the ledger. Accounts can support the aggregate payroll cost, but rarely prove an individual's hours, status at the start or 12 months of continuous employment.

An accountant or payroll adviser can verify pay and reconciliation. They should not be asked to give the immigration conclusion. The legal team should identify the test; the endorsing body must assess the achievement. Where records disagree, resolve the underlying event before drafting a narrative around it.

Employment record

Contract, job description, start date, variations and continuing employment.

Status at the start

Right-to-work and settled-status evidence recorded when the job began and checked against the definition.

Hours and pay

RTI, payroll, payslips and a transparent calculation of paid weekly hours and mean salary.

Company reconciliation

Bank payments, ledger, accounts and an explanation of material differences.

08 / Founder teams

A shared payroll does not give every founder the same settlement achievement.

INNF 17.3 prevents team members applying for, or already granted, Innovator Founder settlement from sharing the same means of meeting the criteria. The example is explicit: if 2 founders each rely on creating 10 jobs, the business must have created 20 jobs in total.

The same discipline applies to the 5-job alternative. Allocate distinct qualifying jobs to each applicant rather than placing the whole payroll into both endorsement requests. Different application dates do not remove the restriction once an earlier team member has settled using the venture.

Founder-level planning should begin before recruitment decisions are irreversible. The company should not manufacture positions, but genuine growth can be recorded in a way that preserves which founder will rely on which independent achievements and why.

09 / The whole case

Job creation is 1 achievement inside a wider endorsement and settlement decision.

A successful job matrix does not itself produce settlement. The endorsing body must confirm significant progress, a registered and trading business, sustainability for the following 12 months and the applicant's active key role. At least 2 listed business achievements must be met.

The applicant must also meet qualifying-residence, continuous-residence, English-language, Life in the UK and suitability requirements. The settlement endorsement must be issued no more than 3 months before the application. The employment period, second achievement, endorsement date and permission expiry should be modelled together.

If a job reaches 12 months only after permission expires, the problem cannot be solved by calling the role permanent. Consider whether another achievement is satisfied, further permission is available or a different lawful strategy is required. The timetable should follow the evidence that exists.

Job creation criterion review

Test every job before relying on the aggregate.

This is a practical review sequence, not a prescribed Home Office checklist or a prediction of endorsement.

01

Choose the alternative

Decide whether the evidence is directed to 10 qualifying jobs or 5 jobs at the £25,000 threshold.

02

Fix the 12-month window

Identify an uninterrupted period for each worker and job before setting the endorsement date.

03

Verify status at the start

Confirm the worker met the settled-worker definition when the job began.

04

Calculate paid hours

Prove at least 30 paid hours or a permitted combination of part-time jobs held by different employees.

05

Reconcile salary and payroll

For 5 jobs, calculate each mean gross salary excluding allowances and match payroll to accounts.

06

Test founder allocation

Remove jobs relied upon by another team member and confirm a separate second achievement.

Practical questions.

Can a Skilled Worker employee count towards Innovator Founder job creation?

Not merely because the employment is lawful. The employee must meet the settled-worker definition when the job begins. Later settlement does not retrospectively convert the earlier period.

Can 2 part-time employees count as 1 full-time job?

Potentially. Jobs held by different employees may be combined if the total averages at least 30 paid hours a week and every job has existed for 12 months. Short successive engagements cannot be combined because they covered the same position.

Does a £25,000 package satisfy the 5-job route?

Only if each job has a mean salary of at least £25,000 a year in gross pay after excluding allowances. Benefits, reimbursements and an allowance-heavy package should not be treated as salary without a careful calculation.

Can a replacement employee complete the first employee's 12 months?

The guidance says the settled worker filling the job must remain employed for the whole period and rejects combining shorter jobs in the same position. A replacement's period should not be added to the predecessor's to manufacture 12 months.

Can a contractor count as a job created?

An independent contractor does not ordinarily establish a paid job for an employee merely because the contractor works regular hours. The actual relationship, payroll, paid hours and employment evidence must support a qualifying job.

Can 2 cofounders rely on the same 10 jobs?

No. INNF 17.3 gives the direct example that 2 founders each relying on 10 jobs require 20 qualifying jobs in total.

Do the 5-job and 10-job routes count as 2 settlement achievements?

No. They are alternatives within the same job-creation criterion. The founder needs a separate qualifying achievement and must satisfy the wider settlement requirements.

The legal foundation

Primary sources.

Immigration Rules Appendix Innovator Founder: INNF 15–21, especially INNF 17.1(f)(vi)–(vii) and 17.3–17.5Home Office Innovator Founder caseworker guidance: settlement job creation requirementsHome Office guidance for endorsing bodies: settlement success criteria and qualifying jobsGOV.UK: Innovator Founder settlement endorsement and business achievements

Publication reviewed 30 September 2026. General information only; individual circumstances require advice.

Job creation is not proved by pointing to a busy payroll at the end of year 3. The case is built worker by worker: settled status when the job began, 12 months in the job, the required paid hours and, for the 5-job alternative, mean salary after allowances are removed. Resolve those questions while the records are complete and before the endorsement date becomes a deadline.

Compare the founder, company and route before fixing the structure.

Innovator Founder and sponsored work answer different legal and commercial questions. The venture, ownership, UK role and intended settlement position should be considered together.

More analysis, evidence and referral guidance

Test the jobs before the settlement timetable depends on them.

For an initial review, provide the endorsement and permission expiry, proposed job criterion, employee start dates and status at recruitment, contracts, hours and payroll summary, cofounder position and proposed second achievement. Jayesh can coordinate the immigration analysis with the venture's employment, payroll and accounting advisers. Legal advice is provided by Quastels LLP after conflict checks and agreement of scope, fees and engagement terms. Do not send employee identity documents through the initial enquiry form.

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