Working for wholly owned Subsidary

hi,

During covid time our company had to undergo some structural changes and there were Subsidiary created which are wholly owned and are registered at the same address as the parent company.

I had to immediately start working under them, My tier2 general visa was issued by my parent company. That is the parent company is the sponsor.

My HR department didn't inform the UKVI about the changes at that time. I got aware of this fact just at the start of the year and then my HR informed about the changes but the request is still under PENDING status in SMS for 6 months now.

I had to apply for ILR as my Tier2 end date is coming soon. And my Biometrics is supposed to be in couple of weeks. At this stage i am wondering if i should go ahead with the Biometrics as i am not sure about the possible outcome and i am paying for the ILR with my own money as i dont want to sign a binding contract with my firm.

My company has given me a cover letter indicating that the subsidiary is wholly owned is registered at same address and that i am going to be working with the branch but still under the parent group this is along with other letters ?

Wondering if this is going to work and what should i do ? I will be grateful to people who have clue ?

Cheers

This is all covered under sponsor license duties.
It looks Example 8 (page 70) of the respective guide says this should not be an issue: https://assets.publishing.service.gov.u ... _v.1.0.pdf

Unless the parent company receives confirmation that the subsidiary is formally included in the licence, technically you have been contracted illegally with your current employer. Ownership of a subsidiary does not automatically grant the rights of the parent onto the subsidiary, this is particularly true in Sponsorship.

Until your HR department guarantees in writing that the subsidiary is absolutely included in the parent company sponsor licence I would not be confident that your ILR would be issue free.

The issue I believe that will be faced is the new subsidiary has not been declared to the Home Office at the time the transfer took place. It does not have its own license and appears to never had a licence from the information you have posted.

If the subsidiary is a separate legal entity that came into being at the time of transfer sometime ago it is and will be an issue.

zimba wrote: ↑

Tue Oct 17, 2023 3:57 pm

This is all covered under sponsor license duties.
It looks Example 8 (page 70) of the respective guide says this should not be an issue: https://assets.publishing.service.gov.u ... _v.1.0.pdf

Thanks example 8 states that the each entity must have its own sponsor licence, This is not true in my case. Subsidiary never had its own licence. But it is wholly owned subsidiary, Not sure if that makes a difference ?
Sorry if i am reading it wrong ?

Frontier Mole wrote: ↑

Tue Oct 17, 2023 4:08 pm

The issue I believe that will be faced is the new subsidiary has not been declared to the Home Office at the time the transfer took place. It does not have its own license and appears to never had a licence from the information you have posted.

If the subsidiary is a separate legal entity that came into being at the time of transfer sometime ago it is and will be an issue.

Yes i believe so, The subsidiary however is just created for accounting purpose. I mean that i get paid under the said name in my salary slips and obviously it will show up in the tax statements under HMRC.
The company has no problem giving me the letter under the parent company but that will be misleading i believe as salary slips and tax payee has been the subsidiary ?

Do you believe there is no point going ahead with the ILR ? What are my options if any ?

This is the issue of compliance and I am in no way informed about this. Example 8 suggests employees can work under the license of a parent company, however, in that example, the subsidiaries have had their own license. Also, it suggests such a move is not a merger or takeover, rather it is a movement of human resources function to the parent company and I think it makes sense for the opposite to be true. I agree that if the subsidiary was created as a totally separate entity, then you may face issues.

zimba wrote: ↑

Tue Oct 17, 2023 4:59 pm

This is the issue of compliance and I am in no way informed about this. Example 8 suggests employees can work under the license of a parent company, however, in that example, the subsidiaries have had their own license. Also, it suggests such a move is not a merger or takeover, rather it is a movement of human resources function to the parent company and I think it makes sense for the opposite to be true. I agree that if the subsidiary was created as a totally separate entity, then you may face issues.

Yes this was a mere structure change to facilitate the investors demand. It is small firm and HR just forgot about this as i am the only sponsored person. I am not sure what entitles the entity as total separate entity ?
I have spoken to solicitors who are not sure themselves and are asking for a massive fee to help which i'd reckon would be waste of my money cause they are not clear about it ?

The HR has submitted the change in SMS but it has been 6 months and they have not got any replies, But if i have already been working under subsidiary then i am not even sure if the request would be accepted.

I am in dilemma if I should go ahead with the ILR process , I have already paid super priority and booked my appointment but with these questions i have a feeling i might be in a tricky situation ?

Thanks for your replies though. Much obliged

Will the caseworker actually be readily be able to tell all your information relates to a different company?

Is the name of the two legal entities noticeable different as an example?

Frontier Mole wrote: ↑

Tue Oct 17, 2023 10:49 pm

Will the caseworker actually be readily be able to tell all your information relates to a different company?

Is the name of the two legal entities noticeable different as an example?

When it comes to name they are kind of identical, I mean the parent company is named as say XXX Group LTD and the subsidiary is XXX Services UK LTD. So both the parent and subsidiary are still being represented as XXX just the suffix changes ?

But the salary slips with bank account reference has the subsidiary name. And if they check the PAYE reference number then it would be different too. So i am worried if not presenting all the details with cover letter will be a misleading factor and outright refusal ?

Hi sorry to pester you on this, I was just trying to figure out my options here. And would be grateful if you can give me your humble opinion ?

I feel that i have three options

• Go with my original plan ie a cover letter stating that i have been working with subsidiary but still employed under the parent

• Dont mention about subsidiary and keep cover letter as a option if asked later on, But comes with a rider that salary slips and bank accounts will have the subsidiary name so have a feeling that they might think i am dodging and hiding facts

• Delay my biometrics and wait for possible outcome for the request raised under the SMS system (That might be PENDING forever as it has been 6 months) and then act accordingly

Would be grateful if you can help me out with these or possibly something else ?

Sorry nudging the post asking for your opinions on my options ? Cheers

I do not see an option for you except to suggest getting a cover letter from the employer should cover all the facts. Your sponsor must consult the UKVI on their options (there is a dedicated line of communication for them) to ensure that they remain compliant with their duties. This must be communicated to your sponsor as there is the possibility that they are not compliant.

Also, avoid the priority service and apply under the standard route. Note that this can drag on for months so be prepared to remain in the UK for the foreseeable future until this is resolved

zimba wrote: ↑

Sat Oct 21, 2023 3:01 pm

I do not see an option for you except to suggest getting a cover letter from the employer should cover all the facts. Your sponsor must consult the UKVI on their options (there is a dedicated line of communication for them) to ensure that they remain compliant with their duties. This must be communicated to your sponsor as there is the possibility that they are not compliant.

Also, avoid the priority service and apply under the standard route. Note that this can drag on for months so be prepared to remain in the UK for the foreseeable future until this is resolved

Ok thanks for your reply. I have already gone with the super priority and i am fine with wait and watch.

Is there any specific number or is there a way through which my sponsor can find this information rather quickly ? As it has been 6 months waiting since they informed them about the subsidiary on SMS, And i dont think they are aware of a dedicated communication line ?

Sponsorship, employer and education helpline
Telephone: 0300 123 4699
Monday to Friday, 9am to 4pm

https://www.gov.uk/uk-visa-sponsorship- ... ur-licence