Guernsey's Home Affairs Committee agreed at a Tuesday meeting in March 2026 to explore a temporary extension of the island's three-year Short Term Employment Permits (STEPs) as the 2023 programme matures and workers begin reaching the existing cap.

Deputy Marc Leadbeater, President of the committee, said losing staff at the three-year mark would put "undue pressure on our valuable hospitality sector." He added: "While we are going into this work with a genuinely open mind, STEPs are, as the name suggests, short term."

What does the change actually involve?

The review centres on extending STEPs from a maximum of three years to four. STEPs let employers hire overseas workers on an initial one-year permit that can be reissued annually up to the cap. Permit holders may live in Guernsey but cannot bring dependents and do not qualify for settlement rights.

Leadbeater framed the shift as a response to immediate pressure rather than a permanent redesign. "At our meeting on Tuesday we agreed to explore a temporary extension policy to the existing three-year STEP while a more comprehensive review of the cap is considered as part of the planned wider works on the population regime," he said.

Who is affected?

The change targets two groups:

• STEP holders approaching the end of their three-year licence in 2026
• Employers in hospitality and other sectors that recruited under the 2023 STEP rules

Home Affairs has processed a "glut" of conversion requests from STEP workers and their employers seeking Long Term Employment Permits (LTEPs). LTEPs require more vetting, allow dependents, and can lead to settlement.

Why the review now?

The STEP programme was introduced in 2023 to address a labour shortage. Three years on, the first cohort now reaches the cap. The hospitality sector has lobbied for a one-year extension. Home Affairs described STEP as a "temporary solution to a labour shortage, not a pathway to longer-term employment and settlement."

Leadbeater warned the committee must weigh any change against Guernsey's membership in the Common Travel Area and "the precedents a change could set."

The Home Affairs committee plans a wider review of Guernsey's population regime, of which the STEP cap is one element. That broader review will consider how the island balances labour demand with its long-standing population policy framework.

What should employers and workers do now?

Leadbeater urged businesses with staff approaching the STEP cap to begin recruitment processes in good time. Workers and employers can track the formal review through the States of Guernsey Population Management office, listed at gov.gg under the Employment Permits section for employers.

The committee has not set a date for when a temporary extension might take effect. Until then, the existing three-year cap remains in force and STEP holders seeking longer stays must apply through the LTEP route.