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*** COVID19 Tier 1E impact and Government support *** Discuss here ONLY

Only for UK Tier 1 (Entrepreneur) points system

Moderators: Casa, JAJ, ca.funke, Amber, Zimba, vinny, Obie, EUsmileWEallsmile, batleykhan, geriatrix, John, ChetanOjha, archigabe, push

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umer.shahzad1
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Re: *** COVID19 Tier 1E impact and Government support *** Discuss here ONLY

Post by umer.shahzad1 » Thu Apr 02, 2020 8:32 am

furlough scheme, explained

Furloughed worker’ is not a recognized term in UK employment law, although it is commonly used in the US. Government guidance says someone is furloughed if they remain employed but are not undertaking work. To furlough means to “lay off or suspend temporarily”, usually without pay. In the UK, the legal term would be “laid off”. it means we cannot claim number of hours

While furloughed employees still technically retain their jobs, the furlough itself means that they cease working for their employers and do not earn a salary. The idea is that this is a temporary arrangement, and workers will one day be able to return to their jobs.

When the Chancellor used this term in his radical employment plan, it left many puzzled. Over the past week employers and employees have been trying to work out whether the scheme applies to them.

Earlier this month the government set in motion a plan to avoid mass redundancies across the UK, and encourage companies to put jobs on hold during the disruption caused by the lockdown.

Under new rules from March 1 and running for at least three months, companies can now “furlough” employees rather than fire them. Through this scheme, the government will pay up to 80 per cent of people’s wages, up to a maximum of £2,500 per month. Anyone working in a full time job (or on a PAYE basis) on February 28 can be furloughed. This includes people on zero hours contracts or those working flexibly. Unfortunately, it does not apply to people that might have switched jobs between the end of February and the government announcement.


Being placed on furlough is similar to gardening leave. You would still be paid by your employer and will still pay taxes from your income — but you would not be able to continue working for your employer for the duration of the furlough. In this case, you would effectively be paid not to work until the end of June.

The grant, which will not start paying out until April, can be backdated to March 1, according to government guidelines. The minimum time that an employee can be furloughed is three weeks, and companies cannot rotate furloughed workers — which is problematic if someone still working becomes ill, according to a blog by employment law firm Farrer & Co. Lawyers said that those already self-isolating cannot be furloughed (and must be paid statutory sick pay) until they return to work. Once they return, they can be furloughed. And people who are “shielding” and vulnerable to severe illness caused by coronavirus can still be placed on furlough.

There is no guarantee that your employer will keep you on after the scheme ends. And if you are furloughed, you will not qualify for 80 per cent of your salary if you earn more than £2,500 per month. In that case, an employer could choose to “top up” your salary, or you could be eligible for support through the welfare system, including Universal Credit.

If you receive a regular salary, the 80 per cent should be calculated based on an employee’s actual salary before tax (their gross salary), as of February 28.

If your pay varies (because you are on a zero hours contract or flexible working contract, for example), the 80 per cent limit will be applied to the same month’s earnings from a previous year, the average monthly earnings for the 2019/20 tax year or an average of their monthly earnings since they started work — whichever is highest.


This situation will not affect employees’ entitlement to statutory maternity or shared parental leave pay. However, employers who offer enhanced contractual maternity, paternity or shared leave pay can furlough these employees to receive support with the cost of that enhanced payment.

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Zimba
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Re: *** COVID19 and Government support *** Discuss here ONLY

Post by Zimba » Thu Apr 02, 2020 1:30 pm

Zimba wrote:
Tue Mar 31, 2020 10:16 pm
Furlough as far as I'm concerned should be viewed as normal full time work with reduced new hourly rate unless UKVI says otherwise. Tier 1E rules do not care about 80% or 100% or whatever. You can assume this period is like hourly rate change. Tier 1E rules do not care how much you pay your employee as long as they are paid above min wage.
UPDATE: The time spent under furloughed does NOT count
uk-tier-1-entrepreneur-visas/impact-due ... l#p1893738
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

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marcnath
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Re: *** COVID19 Tier 1E impact and Government support *** Discuss here ONLY

Post by marcnath » Thu Apr 02, 2020 2:06 pm

Under the T1E rules, you have never been able to "claim the hours" that an employee works.

What the rules require is the number of hours that the JOB has.

Furlough does not impact the hours of the job itself so I can't see it impacting the qualification for job creation under the immigration rules.

It is not very different from an employee that goes on maternity leave or SSP - the job still continues and points have been awarded for the job during that period.
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

Camel555
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Re: *** COVID19 Tier 1E impact and Government support *** Discuss here ONLY

Post by Camel555 » Thu Apr 02, 2020 7:55 pm

Marc you just explained it perfectly

What I have done for March salary is, furloughed employees from mid march, took the past average and calculated the remaining March period hours, which were more than required anyways, multiplied by the hourly rate and took 80% of the wage.

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Re: *** COVID19 Tier 1E impact and Government support *** Discuss here ONLY

Post by Aaina » Sun Apr 12, 2020 8:20 am

Hi Marc,
You have mentioned above that being furloughed won't impact the job qualification period, however the intro topic - new guidelines mention this:

"Time when your employees were furloughed will not count towards the 12 month period"

Please let me know.

Thanks
Aaina

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Re: *** COVID19 Tier 1E impact and Government support *** Discuss here ONLY

Post by tier1entrepreneur-AA » Sun Apr 12, 2020 9:47 am

Aaina wrote:
Sun Apr 12, 2020 8:20 am
Hi Marc,
You have mentioned above that being furloughed won't impact the job qualification period, however the intro topic - new guidelines mention this:

"Time when your employees were furloughed will not count towards the 12 month period"

Please let me know.

Thanks
Aaina
Time when your employees were furloughed will not count towards the 12 month period


This is the home office statement, which the HO has clarified to us all, so we should follow.

Please see the link below:
https://www.gov.uk/guidance/coronavirus ... -residents

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marcnath
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Re: *** COVID19 Tier 1E impact and Government support *** Discuss here ONLY

Post by marcnath » Sun Apr 12, 2020 10:31 am

Aaina wrote:
Sun Apr 12, 2020 8:20 am
Hi Marc,
You have mentioned above that being furloughed won't impact the job qualification period, however the intro topic - new guidelines mention this:

"Time when your employees were furloughed will not count towards the 12 month period"

Please let me know.

Thanks
Aaina
That is correct. I have tried to correct myself in various posts - missed yours.

When I replied initially, it was my best guess. which is why I said "I can't see...". Obviously it was not a good guess :-)
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

Aaina
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Re: *** COVID19 Tier 1E impact and Government support *** Discuss here ONLY

Post by Aaina » Sun Apr 12, 2020 4:07 pm

Great, thank you :) so it won't be counted.

Also on a separate note, the qualifying period for ILR, what if someone gets stuck outside which is what the case is with my dad at the moment. He might not be able to meet the 6 months absence in any 12 month period if the airline routes don't open. Have they provided any clarity on it?

Thank you:)

Regards
Aaina

Camel555
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Re: *** COVID19 Tier 1E impact and Government support *** Discuss here ONLY

Post by Camel555 » Sun Apr 12, 2020 4:40 pm

Hi all,

is this really true? I just furloughed my employees and will it not count towards my job creation? If true then what are the options now, i cant miss any month of job creation for one job as I am literally on the edge ?

Please anyone?

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Zimba
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Re: *** COVID19 Tier 1E impact and Government support *** Discuss here ONLY

Post by Zimba » Sun Apr 12, 2020 5:07 pm

If you are on a Tier 1 Entrepreneur visa and your business has been disrupted
You no longer need to employ at least 2 people for 12 consecutive months each. The 12 month period you are required to employ someone for can be made up of multiple employees across different months.

Time when your employees were furloughed will not count towards the 12 month period.

If have not been able to employ staff for 12 months in total by the time your visa expires, you will be allowed to temporarily extend your stay to give you time to meet the requirement.

These arrangements will continue for applications made after 31 May 2020, where the jobs you are relying on were disrupted due to COVID-19.
https://www.gov.uk/guidance/coronavirus ... -residents
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

Camel555
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Re: *** COVID19 Tier 1E impact and Government support *** Discuss here ONLY

Post by Camel555 » Sun Apr 12, 2020 5:17 pm

Thanks Zimba, I have just read it now, at least they gave us the extension option but still few points. I know its all evolving situation and you might not be able to comment but worth mentioning these points: pls comment

Will they take fee for this extension, and how will this extension work, would the lost time be added into new extension or how?

My one job requirement is fulfilled since Feb2020 but the other job is on the edge with my extension which is due in June, this second job was created in May 2019. I furloughed my employees from 16th March, and from 1st till 15th march, their hours exceed the 30/week requirement. So does the march period count as employed time?

What if someone is stuck outside UK and cant come back before their visa expires?

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marcnath
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Re: *** COVID19 Tier 1E impact and Government support *** Discuss here ONLY

Post by marcnath » Sun Apr 12, 2020 7:42 pm

Camel555 wrote:
Sun Apr 12, 2020 5:17 pm
Thanks Zimba, I have just read it now, at least they gave us the extension option but still few points. I know its all evolving situation and you might not be able to comment but worth mentioning these points: pls comment

Will they take fee for this extension, and how will this extension work, would the lost time be added into new extension or how?

My one job requirement is fulfilled since Feb2020 but the other job is on the edge with my extension which is due in June, this second job was created in May 2019. I furloughed my employees from 16th March, and from 1st till 15th march, their hours exceed the 30/week requirement. So does the march period count as employed time?

What if someone is stuck outside UK and cant come back before their visa expires?
As you said, details are scant. We need to await an updated guidance document.

If your employees furlough only started on 16th, i.e. you are not claiming back the salary for 1st to 15th, that period should still count.

But we need to await formal guidelines.

How the extension works is also open but unlikely they will charge for it or will be a smaller charge - they are not going to be doing the verification that they would do for normal extensions.

Your guess is as good as mine on those who can't come back. It all depends on what restrictions are in place. You can travel to UK still from most places. But the advice is to contact local UK embassy and confirm
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

iocam
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Re: *** COVID19 and Government support *** Discuss here ONLY

Post by iocam » Sat Apr 18, 2020 9:37 pm

Thanks Zimba. CR001, marcnath

I put a summary as below in one post, if you don't mind (put righful quote where it comes from).
mig2015 wrote:
Mon Mar 30, 2020 6:01 pm
Zimba wrote:
Tue Mar 31, 2020 2:11 am
Hi Zimba,

Earlier I asked about the "small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief",

what is your take on the situation after all the updates, do you think it's still unclear whether it's public funds?
They are not. It is very clear now as explained above

(1) Small Business Grant Fund £10,000 who received SBR

It is clear the grant £10,000 is not violating the "no public funds" rule. First, it is for business (company as entity), not the person (as immigrant), who get the grant. Second, it is just not public fund under NRPF definition.

CR001 wrote:
Sun Mar 29, 2020 8:49 am
Updated guidance.
http://www.nrpfnetwork.org.uk/Documents ... tsheet.pdf
... The following assistance can be claimed by a person who has no recourse to public funds (NRPF) ...

 Statutory Sick Pay (SSP)
 Contributory-based Employment and Support Allowance (ESA)
 Wages paid through the Coronavirus Job Retention Scheme (‘furloughed workers’)
 Assistance for businesses and people who are self-employed, as outlined in this government guidance
 Benefits that are listed here (under ‘work related benefits’) -> http://www.nrpfnetwork.org.uk/informati ... x#benefits
...
This is okay for T1E to get below and not violating "no public funds" rule.

(2) Job Retention Scheme (aka 80% wage paid by government/ furloughed workers)
(3) Self-employment Income Support Scheme
Note: but months that paid furloughed workers do not count for the 12 months job creation.


Lastly, I wanted to point out --> like many respected seniors and guru here, who were T1E themselves, we are not free-riders. We contribute this country. We enter this country not by being a lucky sperm. We enter this country by being evaluated for business idea, amount of money you invest (not a company just open the shell and done), number of job created, even your education and English standard are evaluated. I bet most of you spend most of your whole life saving and effort in doing this. Now in difficult time, why on earth someone would blame us to get this rightful help after we contribute. They should blame someone else than us, we are victim, not beneficiary in this crisis.

(Like others, my business is stopped totally now. I don't blame. But I heard too many negative messages that immigrant business should not get help. So I just want to share a positive message. Let's get through it and you will be more successful. All my best wishes to you all)

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Re: *** COVID19 Tier 1E impact and Government support *** Discuss here ONLY

Post by happyguy » Wed Apr 22, 2020 12:43 pm

Dear Moderators
I am on Tier 1 entrepreneur 200k visa since july 2015 and due to apply for ILR in june 2020
I applied for the 10,000 business rates grant scheme one week earlier and today
I have received the GBP 10,000 grant from business rates grant scheme in company business account. Before that I emailed to home office and local government about whether these funds are considered as recourse to public funds or not, but everybody is confused nobody knows the answer.So I need to find out from you whether these funds are ok for my company or shall I refund this payment back .

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Re: *** COVID19 Tier 1E impact and Government support *** Discuss here ONLY

Post by marcnath » Wed Apr 22, 2020 12:50 pm

happyguy wrote:
Wed Apr 22, 2020 12:43 pm
Dear Moderators
I am on Tier 1 entrepreneur 200k visa since july 2015 and due to apply for ILR in june 2020
I applied for the 10,000 business rates grant scheme one week earlier and today
I have received the GBP 10,000 grant from business rates grant scheme in company business account. Before that I emailed to home office and local government about whether these funds are considered as recourse to public funds or not, but everybody is confused nobody knows the answer.So I need to find out from you whether these funds are ok for my company or shall I refund this payment back .
Please read earlier posts in this thread. This has been clarified.
uk-tier-1-entrepreneur-visas/impact-due ... l#p1891290
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

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Re: *** COVID19 Tier 1E impact and Government support *** Discuss here ONLY

Post by happyguy » Wed Apr 22, 2020 1:06 pm

Dear Marcnath
I have read the posts in earlier threads which you posted. It means these funds clearly will not be considered as public fund. So there is no problem whatsoever as far as immigration rules are concerned as I am applying for ILR in the next 2 months.I can accept and utilise these funds for business. Please Marcnath reply to this.

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Re: *** COVID19 Tier 1E impact and Government support *** Discuss here ONLY

Post by happyguy » Thu Apr 23, 2020 11:47 am

Dear Marcnath
Please can you reply to the above post. Thanks once again.

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Re: *** COVID19 Tier 1E impact and Government support *** Discuss here ONLY

Post by marcnath » Thu Apr 23, 2020 1:14 pm

happyguy wrote:
Wed Apr 22, 2020 1:06 pm
Dear Marcnath
I have read the posts in earlier threads which you posted. It means these funds clearly will not be considered as public fund. So there is no problem whatsoever as far as immigration rules are concerned as I am applying for ILR in the next 2 months.I can accept and utilise these funds for business. Please Marcnath reply to this.
Yes
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

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Re: *** COVID19 Tier 1E impact and Government support *** Discuss here ONLY

Post by wanttostayintheuk » Thu Apr 23, 2020 2:36 pm

I understand we can furlough employees, and that these months will not count towards the 12 month total required; I also understand they will extend our visas so that we may finish the 12 months required. However, I am still wondering: how will these 'lost months' where we have furloughed our employees factor into ILR? Will they not be counted towards the end total? I am working towards a 10 year long residence, but I assume the answer will apply to both the ten year and five year routes.

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Re: *** COVID19 Tier 1E impact and Government support *** Discuss here ONLY

Post by CR001 » Thu Apr 23, 2020 2:38 pm

wanttostayintheuk wrote:
Thu Apr 23, 2020 2:36 pm
I understand we can furlough employees, and that these months will not count towards the 12 month total required; I also understand they will extend our visas so that we may finish the 12 months required. However, I am still wondering: how will these 'lost months' where we have furloughed our employees factor into ILR? Will they not be counted towards the end total? I am working towards a 10 year long residence, but I assume the answer will apply to both the ten year and five year routes.
10 year long residence ILR does NOT have the same requirements as ILR based on Tier 1. Long residence is ONLY based on 10 years legal stay, not job creation etc.
Char (CR001 not Casa)
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