14 January 2018

Changes in Tier 1 Entrepreneur job creation

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The Tier 1 Entrepreneur route is for those who will bring investment to the UK economy and create sustainable jobs, not just for themselves, but also for workers settled in the UK.  The rule is;

  • 2 full-time jobs created for settled workers (5 years’ route to Indefinite Leave to Remain), or
  • 10 full-time jobs created for settled workers (3 years’ Accelerated Settlement route to Indefinite Leave to Remain)

However, many Tier 1 Entrepreneur visa holders have not been informed properly the strict criteria to enable their advance preparation. As the employment arrangements needed to be organised as early as possible up to 3 years’ in advance, many Tier 1 Entrepreneurs find themselves falling short of the rules at the last minute. In truth, certain businesses encounter high turnover and may have to combine positions and employees to qualify for each job – this is also subject to narrow conditions.

An amendment is being made to the requirements relating to job creation, so that the required evidence relates to the period before the applicant joined thebusiness, rather than the period before jobs were created. This provides a clearer demonstration of the applicant’s impact on the business.

If you wish to claim you have established two new jobs, the workers and the role must fulfil the Home Office criteria, as set out below:

When must the Tier 1 Entrepreneur qualifying jobs be created?

  • After your start-up or new business is set up, or after you have taken over or invested into an existing business
  • The jobs are created as a direct result of your £200,000 or £50,000 Tier 1 Entrepreneur investment

All the following rules and definitions apply to the extension and settlement job creation requirements:

  1. A full time job is one involving at least 30 hours of paid work a week.
  2. “The equivalent of” a full time job means two or more part time jobs which add up to 30 hours a week will count as one full time job, if both jobs exist for at least 12 months. However, one full time job of more than 30 hours work a week will not count as more than one full time job.
  3. The jobs must have existed for at least 12 months during the period of the most recent grant of leave as a Tier 1 (Entrepreneur) migrant.
  4. A single job need not consist of 12 consecutive months (for example it could exist for 6 months in one year and 6 months the following year) providing it is the same job.
  5. The jobs need not exist on the date of application, provided they existed for at least 12 months during the period of the most recent grant of leave.
  6. Different jobs that have existed for less than 12 months cannot be combined together to make up a 12 month period. The only exception is where you successfully applied as a Tier 1 (Entrepreneur) migrant before 6 April 2014 in which case you may be able to apply the job creation rules allowed under a transitional arrangement. Further details on transitional arrangements can be found below.
  7. If jobs are being combined, with two part time employees being used to create the equivalent of one full time job, the employees being relied upon must be clearly identified by you in your application.
  8. The jobs must comply with all relevant UK legislation including, but not limited to, the National Minimum Wage and the Working Time Directive. The table below sets out how we will consider job creation for different types of application

Pre 6th April 2014-transitional arrangement- Tier 1 Entrepreneur job creation

If you successfully applied to enter and have continually remained in the route since before the 6th of April 2014, and you are making an extension application or a settlement application, you may continue to employ (and score points for job creation):

  • 1 worker for 24 months
  • 1 worker for 6 months and one for 18 months
  • 4 workers for 6 months each

Please note: This transitional arrangement will come to an end on 6th April 2019. If you intend to make an extension or settlement application on or after 6th April 2019, you will not be able to rely on this transitional arrangement.

About the Author

Sheryar has an extensive knowledge and experience of processing all applications under the points-based system as well as applications for asylum, legacy, long residency, spouse visas, appeals, reconsiderations and judicial review applications.

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