Employee hours and wage calculation - Post April 2014

Hi All,

I got my T1( Ent.) visa in Dec 2014. I would like to understand the Empl0yee hours and wage calculation.

I have got two full time employees (1 HR, 1 Ofc Accountant) working 35 hours per week.

Q1: Is it mandatory that both the employee's continue for 12 months? or is it that both the positions should exist for 12 months. I am expecting my ofc accountant to leave after 4 months of employment (before 12 months) and than will have to hire another employee (in continuation or after a gap of 2 months).

Q2: Is it OK if hiring a replacement of the 2nd employee after a gap of 2 months?

Ofc accountant position: 4 months employment (person A) <--> 2 months gap <--> 8 months employment (Person B)

About Wages:

Now since National Minimum wage (£7.2/hour) is in force. Can someone share an example of what minimum salary can be given to an employee?

I have done a rough calculation, let me know if this is fine:

1 assume 30 hours/week is the minimum number of working hours per week as per the T1 (E) regulations. Please correct me if otherwise.

I have employees working 7 hours per day (35 hours per week)

Calculation:
7 hours per day * £ 7.2 per hour = £ 50.4 per day
£50.4 * 5 days per week = £ 252 per week

£ 252 per week * 52 weeks = £ 13104

Is this calculation correct or is there something that I need to take care from UK employment law and T1 (E) regulations.

Thanks,

Kaps

kaps84 wrote:Q1: Is it mandatory that both the employee's continue for 12 months? or is it that both the positions should exist for 12 months. I am expecting my ofc accountant to leave after 4 months of employment (before 12 months) and than will have to hire another employee (in continuation or after a gap of 2 months).

The positions must be maintained for 12 continuous months.

kaps84 wrote: Q2: Is it OK if hiring a replacement of the 2nd employee after a gap of 2 months?

Unfortunately, you can not have any gaps in 12 months period. An employee can be replaced with another employee for that position but there should be no gaps in that 12 month period.

kaps84 wrote:Calculation:
7 hours per day * £ 7.2 per hour = £ 50.4 per day
£50.4 * 5 days per week = £ 252 per week

£ 252 per week * 52 weeks = £ 13104

Is this calculation correct or is there something that I need to take care from UK employment law and T1 (E) regulations.

This should be fine.

Q1: Is it mandatory that both the employee's continue for 12 months? or is it that both the positions should exist for 12 months. I am expecting my ofc accountant to leave after 4 months of employment (before 12 months) and than will have to hire another employee (in continuation or after a gap of 2 months).

You should not confuse a job/role with number of employees hired. I have repeated this several times on this forum. A job CAN be completed with multiple employees and obviously you can replace your employees. This is literally given as an example in item 163 of the guide for post April 2014 candidates. It is also clearly mentioned in paragraph 50 of Immigration rules Appendix A:

50. Where the applicant’s last grant of entry clearance or leave was as a Tier (Entrepreneur) Migrant, the jobs must have existed for a total of at least 12 months during the period in which the migrant had leave in that category. This need not consist of 12 consecutive months and the jobs need not exist at the date of application, provided they existed for at least 12 months during the period in which the migrant had leave as a Tier 1 (Entrepreneur) Migrant.

Q2: Is it OK if hiring a replacement of the 2nd employee after a gap of 2 months?

Yes, as described above.

Now since National Minimum wage (£7.2/hour) is in force. Can someone share an example of what minimum salary can be given to an employee?
I have done a rough calculation, let me know if this is fine:
1 assume 30 hours/week is the minimum number of working hours per week as per the T1 (E) regulations. Please correct me if otherwise.
I have employees working 7 hours per day (35 hours per week)
Calculation:
7 hours per day * £ 7.2 per hour = £ 50.4 per day
£50.4 * 5 days per week = £ 252 per week
£ 252 per week * 52 weeks = £ 13104
Is this calculation correct or is there something that I need to take care from UK employment law and T1 (E) regulations.

Obviously you obliged to pay at least min wage to all your employees under the law.
From April 2016, the national living wage will be £7.20 an hour for workers aged 25 and older.
Use this website for accurate salary calculations: http://www.thesalarycalculator.co.uk/hourly.php
For 30 hours/week and min wage of £7.20 an hour, you have to pay at least £11,232 per year salary.

on a seperate note, is it ok to have 1 HR just for one employee ? doesn't that raise questions ?

Hi Zimba,

As the immigration rule says :

Where the applicant’s last grant of entry clearance or leave was as a Tier (Entrepreneur) Migrant, the jobs must have existed for a total of at least 12 months during the period in which the migrant had leave in that category. This need not consist of 12 consecutive months and the jobs need not exist at the date of application, provided they existed for at least 12 months during the period in which the migrant had leave as a Tier 1 (Entrepreneur) Migrant.

If an employee A works for me for 12 months during 2014-2015 and then leaves.
and employee B works for me for 12 months during 2016-2017 and then leaves.

Can I use both of these Jobs for my extension.

n8net wrote:on a seperate note, is it ok to have 1 HR just for one employee ? doesn't that raise questions ?

Where do you have to disclose the position of the person working for you in the company ??

If an employee A works for me for 12 months during 2014-2015 and then leaves.
and employee B works for me for 12 months during 2016-2017 and then leaves.
Can I use both of these Jobs for my extension.

Of course, why not ??

shouldn' t the two job you create satisfy some crieteia NQF Level 4 and above ? so you will have to disclose the job titles ?

also, as part of of genuine Ent tests, they can ask you for organisation structure which will reveal this ?

n8net wrote:shouldn' t the two job you create satisfy some crieteia NQF Level 4 and above ? so you will have to disclose the job titles ?

also, as part of of genuine Ent tests, they can ask you for organisation structure which will reveal this ?

There is no requirement that the jobs must be NQF Level 4. Any job with a minimum salary (national Living Wage) given to a Settled Person qualifies.
If it is can you please give the reference.

n8net wrote:shouldn' t the two job you create satisfy some crieteia NQF Level 4 and above ? so you will have to disclose the job titles ?

also, as part of of genuine Ent tests, they can ask you for organisation structure which will reveal this ?

No such requirement in the immigration rules. Genuine test is also subjective and mostly not conducted, unless your case or your background shows some red flags.

zimba88 wrote:

n8net wrote:on a seperate note, is it ok to have 1 HR just for one employee ? doesn't that raise questions ?

Where do you have to disclose the position of the person working for you in the company ??

If an employee A works for me for 12 months during 2014-2015 and then leaves.
and employee B works for me for 12 months during 2016-2017 and then leaves.
Can I use both of these Jobs for my extension.

Of course, why not ??

Hi Zimba there is a lot of confusion going on job creation and no of hours counted towards full time, kidnly read my situation completely and guide me through.

i applied before 6th april 2014 but got my visa on the 17th of april 2014,
if i go by the post 6th april 2014 job creation requirement, then i need to create 2 full time posts which must last for 12 months however the post can be part time as well.
now i have hired 2 Part employees from April 2015 100 hours per month each which comes to 200 hours however according to explanation which you gave above means only 130 hours will be counted out of 200 hours to make it as 1 full time job ? ( 2 part time posts were were 13 months then became full time)
then from may 2016 the same 2 employees have become full time 150 hours a month so again only 130 hours will be counted of each employee,
so if i calculated the first year of job creation by 2 part time employees which comes to only 1 full time job but 2 different posts with max 1560 hours counted for 1 full time job.
now from may 2016 to feb 2017 they'll be working full time 150 hours per month and will continue to work in future as well but i am mentioning until feb as i'll be applying my visa in March 2017, so from May to Feb , there will be only 9 month of 2 full time employment with maximum of 130 hours per month per employees is counted which comes to max 2340 hours for these 9 months from 2 full time employees and max 1560 hours from part time ,
now in my case 2 posts have already existed for 12 months ( part time though) after that 9 months full time , which makes it 3900 hours , is it fine , am i on the right track or do they need to complete 2 full complete years of employment, kindly suggest.


Guidelines

If you have established new businesses, those businesses must have, between them, created the equivalent of two extra full-time paid jobs for at least two people who are settled in the UK and those jobs must have existed for at least 12 months each.
154. We consider a 30-hour working week to be full-time. Part-time work can form part of the total number of hours of employment created.
These examples go further than the Immigration Rules. The Immigration Rules at Appendix A Tables 5 and 6 state that you must create the equivalent of two or more full-time jobs that have existed for a total of at least 12 months during your last period of leave as an Entrepreneur in order to extend your leave or meet the settlement criteria. Appendix A, paragraphs 49 and 50 provide additional explanation.
For those applying for entry clearance or switching into the route from 6 April 2014, the employment must be for at least two separate jobs, and must exist for at least a full 12 months each.

49. A full time job is one involving at least 30 hours of work a week. Two or more part time jobs that add up to 30 hours a week will count as one full time job but one full time job of more than 30 hours work a week will not count as more than one full time job.
50. Where the applicant's last grant of entry clearance or leave was as a Tier (Entrepreneur) Migrant, the jobs must have existed for a total of at least 12 months during the period in which the migrant had leave in that category. This need not consist of 12 consecutive months and the jobs need not exist at the date of application, provided they existed for at least 12 months during the period in which the migrant had leave as a Tier 1 (Entrepreneur) Migrant. p39
https://www.gov.uk/government/uploads/s ... ndix_A.pdf

Hi Zimba,
i might sound repetitive but
if you could please help me with some more questions and confusions for post 6th april 2016 scenario,

1) i have 2 employees for 2 different posts , hired in april 2015 as part time ( 100 hours each) with hourly wages increment after every 6 months, they worked part time from April 2015 to April 2016 as part timers which comes to 13 months, so it full fills the 1st requirement of 2 posts lasting for 12 months and adding upto 1 full time employment, after that they become full time with further increment in hourly wages from MAy 2016 and they are still working and will continue to work in future as well, i'll be applying in the month on march so the pay roll can be run until feb 2017 for consideration, so from may 2016 to Feb 2017 , it comes to 10 months of 2 full time employment with 2 different posts ( it's the same post which were in 2015-2016 as part time), now can 6 months or 10 months of each full time post by the same employees be considered as 1 full time posts to make it 2 full time employment.

2 posts by 2 part time employees for 13 months adds to 1 full time employment and then the same posts become full time from may 2016 by the same 2 employees .

2)how to fill the job creation section in the application form or the sample given in the policy guide,
as my employee were part time for 13 months with an hourly salary increment and then they have become full time with further salary increment.
they have only start date but no end date and their hourly wages increased after every 6 months.
and the contusion is we are getting points for no of posts not for employees.

this is what we need to fill in the application form.
Job number:
Job title:
Date post created:
If this job is being combined with another job to make equivalent of 1 full time job, indicate which
job:
Employee name, Start date, End date, Hourly rate paid, Full-time, Part-time.
Thanks for you time and patience.

Hi Zimba, Nothan, Aby and all experts i am waiting for your reply please.