Job Creation and aggregate job duration

[maverick_76]

Hi Everyone,

I have few specific queries regarding Job Creation aspect for extension. I know everything is in guidance and I have gone through it now few times. Call me stupid/paranoid but I still want to have valuable inputs from all you intelligent folks on the following -

According to guidance -

established a new business or businesses that has/have created the equivalent of at least two new full-time jobs for persons settled in the UK;

A single worker can be employed for 24 months. ....

Above statements quite clearly suggests it does not need to be two people employed however it needs to be aggregate of job done by 2 people. So one person employed for 2 years will be sufficient for extension points?

However the confusion comes when guidance further states -

Where your last grant of entry clearance or leave was as a Tier 1 (Entrepreneur)migrant, the jobs must have existed for at least 12 months for the period for which the previous leave was granted.

So what happens in case we are employing 1 worker for 2 years, will they only count last 12 months? Above it says job must exist for 12 months, but further guidance states

If four workers are employed for 26 weeks (six months) each, their hours of employment may be added together.

Are not the above two points bit contradictory? At one place it mentions jobs need to be for 12 months and further it states it is ok to employ 4 people for 6 months for points?

In case of accelerated extension cases, guidance does not mention anything regarding whether the jobs can be equivalent of 10 people employed over three years. Specific question is, will I be able to apply for ILR after three years if I have employed 5 people for continuous two years?

Look forward to hear from you all ....

Regards,[/quote]

[Aboora]

Hi,

As I understand,

The two full time jobs (30 hours/wk) are required to be created for one year for extension which essentially means that around 3150 man hours of work in aggregate. The number of employees are irrelevant.

Similarly for accelerated route, it should be 5 times of the above.

All this has to be created within your initial period of leave of three years as tier 1 entrepreneur.

Hope this has cleared your understanding

Regards

[rehan01]

Hi,

As I understand,

The two full time jobs (30 hours/wk) are required to be created for one year for extension which essentially means that around 3150 man hours of work in aggregate. The number of employees are irrelevant.

Similarly for accelerated route, it should be 5 times of the above.

All this has to be created within your initial period of leave of three years as tier 1 entrepreneur.

Hope this has cleared your understanding

Regards

I totally agree with Aboora explanation.

or in other words create full time work equivalent of 3120 working hours (which is total of 2 full time job @30 hours per week) irrespective of number of employees etc

regards

Rehan

[whiteroses]

^^ Yes, the only exception is that the number of hours worked by a self employed person for your business will not count.

[maverick_76]

^^ Yes, the only exception is that the number of hours worked by a self employed person for your business will not count.

Why would a self employed person for business will not count? If we are using part time/full time workers on contract they may be acting as self employed for taxation purposes. In fact most of the contractors in UK are self employed, so do you mean you can't use them in your business because it wont count for extension points?

@ Whiteroses - will appreciate if you can shed more light on this please.

[whiteroses]

Why would a self employed person for business will not count? If we are using part time/full time workers on contract they may be acting as self employed for taxation purposes. In fact most of the contractors in UK are self employed, so do you mean you can't use them in your business because it wont count for extension points?

@ Whiteroses - will appreciate if you can shed more light on this please.

The policy guidance states that for the purpose of extension:

"Only employees of your business will qualify. Self-employed contractors who are working for your business will not qualify for the award of points."

And goes on to state (under 'Who is an Employee'):

"You can claim points for employees who are:
• part-time and full-time workers; or
• workers under an employment contract.
However, you cannot claim points for a self-employed worker who is contracted to work for you.
In this case the person will have a contract for service and will not be accepted for the award of points as an employee."

[maverick_76]

Thanks for the information whiteroses!
Do you know what might be the logic behind this rule? This is really disappointing that after hiring the best talent we can not get points just bcoz he is self employed.

[whiteroses]

Thanks for the information whiteroses!
Do you know what might be the logic behind this rule? This is really disappointing that after hiring the best talent we can not get points just bcoz he is self employed.

I'm not sure to be honest. I think that they want to reduce the unemployment numbers and this a way of encouraging you to pick someone from that pool, rather than someone who is already employed or self employed.

[JohnOhn]

^^ Yes, the only exception is that the number of hours worked by a self employed person for your business will not count.

As long as you can provide a P11 and wage slips for an employee, that means they are NOT self-employed, correct?

[rahulsingh1]

quick question-

this is what it says in the settlement form SET(O).

-> For normal settlement it says - "You must also have created an aggregate of at least 2 new full time posts for 2 people for at least 12 months each across your business." - I dont know if while applying for settlement they are wanting 2 jobs for 2 people or for are considering the 24 month formula(regardless of jobs.)

-> For accelerated settlement it says - "If you are applying under the accelerated route to settlement, you must demonstrate:
- that you have created an aggregate of at least 10 new full time posts for 10 people for at least 12 months each across your business." - Again here, i am not sure if they want 10 different people of just 10 years worth of employment.. ?

Anyone who can throw light on this ?

[maverick_76]

@ rahulsingh1
In both the cases they are looking at aggregate job creation. So for accelerated route you can have 3 people for first two years and 4 people working full-time in third year.