The EU Settlement Scheme checkbox is there so you can record and track an employee’s settlement status when you create a new starter. It’s mainly used for reporting, because it shows up in the Right to Work Report under Standard Reports, so you can keep an eye on who has EU Settlement Scheme status.
If you’re seeing fields like “Indefinite leave to enter the UK” or “Indefinite leave to remain in the UK” come out blank on a custom report, it’s often because the employee’s Eligibility to Work details haven’t been set up correctly so selecting the EU Settlement Scheme box and the relevant leave boxes in Eligibility to Work fixes that.
When you're creating a new starter, there's a checkbox labelled EU Settlement Scheme. This is used to keep track of settlement status and appears in the Right to Work Report found in Standard reports.