Work permit by a small company and minimum guaranteed salary

[principium]

Hello,

What kind of problems can I encounter if the company which is willing to sponsor my work permit has been created only recently?

Also, is there any minimum requirement for the salary that a company guarantees?

Many thanks

[philgeorge999]

If they are a legitimate, registered company and they can prove that they have tried to recruit someone from the EU for 4-6 weeks beforehand (by sending in copies of their adverts, rubbish CVs etc) then you should have no problems. The job must be classified as 'professional' though and you must be offered the same rate for your job that they would offer a UK employee. (They have to prove they are offering the market rate).

Hello,

What kind of problems can I encounter if the company which is willing to sponsor my work permit has been created only recently?

Also, is there any minimum requirement for the salary that a company guarantees?

Many thanks

[principium]

Dear Philgeorge999,

Thanks for your prompt reply. I already have a work permit and i am applying for a very similar position so threre will be no need to advertise the positin and prove that I am better than other applicants.

the problem is that as this is a new company, they are not sure how much money they can guarantee me. What would you advise?

With gratitude,
principium

[Smit]

See the criteria below which your new employer must meet. As regards minimum salary, this should not be lower than going market rates for similar positions:


Establishing your company
If you have not applied for a work permit in the past five years you should send documents which establish that you are a UK-based employer, with a presence in the United Kingdom and which is capable of offering a genuine vacancy. Please send:



A copy of the UK employer?s latest audited accounts with the accountant's name clearly shown, or a copy of the latest annual report.


In addition please send any other relevant documents that clearly show the company is a UK-based employer. Please provide as many recent examples from the following list, as possible:
- Annual report;
- Certificate of Employers Liability;
- Lease of premises and floor plan;
- Copies of necessary registration documents (for example with the Local Health Authority);
- Invoices;
- Utility bills;
- VAT returns;
- Accounts submitted to the Inland Revenue; and
- P24N1 document from the Inland Revenue.


In the case of hotel and catering establishments employers should supply evidence of registration with their Local Council to serve food. We may also require menus, wine lists and hierarchy charts.


In the case of the Education Sector we may also require a copy of the prospectus.

This is not an exhaustive list and we may need to ask for further information.If you have not applied for a work permit in the past five years you should send documents that show you are a UK-based employer, which has been established in accordance with UK legislation. It is particularly important for you to show that your company already has a presence in the United Kingdom and that it is capable of offering a genuine vacancy. Please send:

(a) A copy of the UK employer?s latest audited accounts with the accountant's name clearly shown, or a copy of the latest annual report.

(b) If neither of these are available please send any other relevant documents that clearly show the company is a UK-based employer. For example: lease of premises, invoices, utility bills, VAT returns, accounts submitted to the Inland Revenue and the P24N1 document from the Inland Revenue.

(c) In the case of hotel and catering establishments we may also require menus, wine lists and hierarchy charts.

[principium]

Dear Smit,

thank you for your help. unfortunately,t hsese rules do not specifiy salary requirements. The company is new and at this stage they really do not know how much they are going to pay me (1st month may even be a voluntary work). Do you think if I do not receive a salary for the first 2 months, it will be a breach of the regulation (when I fill WP1, the employer needs to indicate the minimum salary guaranteed for the position)?

Thank you very much

[vin123]

Dear Smit,

thank you for your help. unfortunately,t hsese rules do not specifiy salary requirements. The company is new and at this stage they really do not know how much they are going to pay me (1st month may even be a voluntary work). Do you think if I do not receive a salary for the first 2 months, it will be a breach of the regulation (when I fill WP1, the employer needs to indicate the minimum salary guaranteed for the position)?

Thank you very much

principium,

I dont think there is any minimum salary requirement for processing work permits. But there is general assumption that salary offered is at par with market rates.
I think there is section in the form where the employer need to indicate the salary but what you get paid in principal may very well be different - nothing unusual or breach of regulation in that.

[philgeorge999]

Errr if you are applying for a new job then they will still have to prove they could not find any suitable EU candidates. Your own experience is irrelevant. Employers are expected to recruit people from the EU. Only if they cannot are they allowed to apply for work permits.

Dear Philgeorge999,

Thanks for your prompt reply. I already have a work permit and i am applying for a very similar position so threre will be no need to advertise the positin and prove that I am better than other applicants.

the problem is that as this is a new company, they are not sure how much money they can guarantee me. What would you advise?

With gratitude,
principium

[principium]

Dear Vin,

But how do you think an employer can prove it will [i]guarantee[/i] a certain sum of money if the company is really new and they still do not have their accounts done?

I think in this case the application for work permit will be rejected.

Thank you for your advice.
principium

[John]

I think it is worth looking at this as if from the other side. Imagine for a moment you are the organisation that issues Work Permits!

Now you know that it is extremely easy and cheap to set up a Limited Company. Unless you have some rules in place it will be all too easy for those wanting to bend the rules to set up a company and then get that brand-new company to apply for a Work Permit for someone! Accordingly you put in place some sort of requirement to show that the business is established and totally genuine ... rather than just a sham to get someone their Work Permit. That sounds totally reasonable to me

I am not suggesting for one moment that the OP and the potential employer are anything other than totally genuine ... but fear that new company getting the OP a Work Permit will be a problem.

[vin123]

Dear Vin,
But how do you think an employer can prove it will guarantee a certain sum of money if the company is really new and they still do not have their accounts done?

Firstly, there is no written rule that a newly registered company is not allowed to apply for work permits.
Since the company is new, the account books will be obviously empty - but I don't see that as a showstopper.
As detailed in Smit' earlier post, the Work permit office may check other "rock solid foundational pillars" of the company and its credibility before the permit approval.

I think in this case the application for work permit will be rejected.

Be positive, if one door closes - 11 open elsewhere. Thats just my theory.

[principium]

I think it is worth looking at this as if from the other side. Imagine for a moment you are the organisation that issues Work Permits!

John, you have expressed my concerns. I could wait till the company makes at least its quarterly accounts, but my leave to remain will expire by then. So I think that it would be better if I am employed by another company. Yes, it is a small company and I learned about this opportunity through my friend, but there are lots of responsibilities and opportunities to grow there and the employer is willing to apply for the work permit.

Thanks for your help.

[principium]

Vin,

You are also right. But my leave to remain expires very soon and I think I do not have time for the experiments. Otherwise I would have definiteley tried.

Thank you for your kind advice.

[ND]

principium,

Here are the links for the pay conditions and It occupation sheet which lists the IT Job Titles and the relavant salary requirements.

PAY AND CONDITIONS

JOB DESCRIPTIONS AND SALARIES

I think this is what the workpermit people will look at while evaluating WP applications . I am not 100% sure.

In that list for Software Engineer the salary is listed as £26473. So I think it all depends on what your role is.

But if they are not going to give first 2 months pay I am not sure how its going to effect u'r application. When my company applied WP for me we sent the job contract which clearly shows the salary and benefits.

[raniwza]

Hi there

I have got a similar problem - please can you advise what is the market rate for a trainee accountant? I know a few friends in the past managed to get a work permit although their starting salaries differ very much and very low, obviously with a smaller company you would not expect the salary offered to be as high as PWC, KPMG etc right? But the roles are all the same - please can anybody advise is the salary really matters?

Raniwza

[vin123]

Average market rate differs for each region, for example in Manchester it could be as little as 17-18K where as Londoners might be pocketing a hefty 25-26K - for someone with similar profile as yours.
The best way to get the average number for your region is either from recruitment agents at the high street, or jobsite websites like (jobserve.com planetrecruit.com totaljobs.com etc) and search jobs advertised relevant to your region.

Hi there

I have got a similar problem - please can you advise what is the market rate for a trainee accountant? I know a few friends in the past managed to get a work permit although their starting salaries differ very much and very low, obviously with a smaller company you would not expect the salary offered to be as high as PWC, KPMG etc right? But the roles are all the same - please can anybody advise is the salary really matters?

Raniwza

[principium]

Hi there

I have got a similar problem - please can you advise what is the market rate for a trainee accountant? I know a few friends in the past managed to get a work permit although their starting salaries differ very much and very low, obviously with a smaller company you would not expect the salary offered to be as high as PWC, KPMG etc right? But the roles are all the same - please can anybody advise is the salary really matters?

Raniwza

raniwza,

I think Vin is right. At BIG4 you are looking for around 25000. But the sum may vary acrros region and the size of the accountancy firm. I think 20000+ looks reasonable for any gradutae job in Finance and with that you should have no problems. if you are offered a salary below that, then serach the websites that Vin recommended and also you could print the salary surveys and send them as a supporting document.

[principium]

But if they are not going to give first 2 months pay I am not sure how its going to effect u'r application. When my company applied WP for me we sent the job contract which clearly shows the salary and benefits.

ND, hi!

Well, you can state the salary in the paper, any salary really (if all intentional salaries could have come true!) but... what if the real salary does not meet the guaratneed level?
i come to realise that new start-ups are not for me...too many problems

[ND]

principium,

If you have a choice then its better to go for big companies.


If the real salary does not mee the guaranteed level then how will the HO know about it ?

Its only during the extension they will know about it.But I am not suggesting to do it that way. I dont think any company would take that risk .

[principium]

[quote="ND"]principium,

If you have a choice then its better to go for big companies.


If the real salary does not mee the guaranteed level then how will the HO know about it ?

Its only during the extension they will know about it.But I am not suggesting to do it that way. I dont think any company would take that risk . :wink:[/quote]

Yes, I think the same. But... why during extension? Do they make checks in Inland Revenue?

[ND]

principium,

I dont think they will do any checks with Tax Office.

I am not sure if we are required to send the pay slips and bank statements for extension or FLR.

If thats the case then they may suspect.