I have copied this from a website and hope it helps you.
"Poor law 1601 - 1834
Everyone would have a parish of legal settlement and if relief was required it would be the responsibility of that parish to provide it. The parish was required to elect each Easter two "Overseers of the Poor" who were responsible for setting the poor rate, it's collection and the relief of those in need, these overseers should ideally be, "substantial householders" but in small villages the only practical qualification was to be a rate payer. In rural England where 90% of the population lived this was a fair and equitable system run by local people and administered by the local Justices of the Peace who were likely to be the Rector and local landowners. Following 1834 all this changed as parliament denigrated the system bit by bit in response to the growth of the large industrial towns and their very different problems.
Legal settlement was the overlying principle of poor relief, the qualifications for which were as follows :-
To be born in a parish of legally settled parent(s)
Up to 1662 by living there for 3 years . After 1662 you could be thrown out within 40 days and after 1691 you had to give 40 days notice before moving in.
Renting property worth more than £10 per annum in the parish or paying taxes on such a property.
Holding a Parish Office.
Being hired by a legally settled inhabitant for a continuous period of 365 days. (most single labourers were hired from the end of Michaelmas week till the beginning of the next Michaelmas so avoiding the grant of legal settlement). By the time you were married, had proved your worth and gained experience then longer hirings were possible therefore changing legal settlement.
Having served a full apprenticeship to a legally settled man for the full 7 years.
Having previously been granted poor relief. This condition implied that you had previously been accepted as being legally settled and was usually only referred to in settlement examinations.
Females changed their legal settlement on marriage, adopting their husbands legal place of settlement. ( If a girl married a certificate man in her own parish and he died, she would automatically be removed to his place of legal settlement along with any issue from the marriage).
If you could not satisfy these requirements you could move into a new parish using a settlement certificate providing your home parish would issue one. This was virtually a form of indemnity issued by your home parish stating that you and your family and future issue belonged to them and they would take you all back at their expense if you became chargeable to the parish. Because of the expense of removal it would be unlikely your home parish would issue a certificate for a parish a large distance away. A settlement certificate was only valid if it bore the seals of the overseers of both parishes and that of the local Justices and was not transferable.
If you or your family became or threatened to become reliant on parish relief and you could not satisfy the strict guidelines for legal settlement then you were liable to be removed to the place of your last legal settlement. If you were a certificate man the you would be carted back to your old parish at their expense but if no settlement certificate was in force then a removal order was applied for from the local Justices of the Peace. This would usually involve an Examination as to Settlement carried out before the local justice, overseers and another ratepayer in order to ascertain your place of last legal settlement . In tenuous cases others may have to be examined also, parents, grandparents and siblings, these examinations could run into many pages virtually the life story of the individuals family".
So I suppose the test is not being born there but being legally settled!
Hope this makes sense.