Dec 1, 2017
2 minutes read

Tier 1 Entrepreneur – Job Creation

Entrepreneur Visa

We have noticed that most Tier 1 Entrepreneur visa applicants struggle with the job creation aspect during Extension and Indefinite Leave to Remain applications.

The rule requires entrepreneurs to create

  • 2 full-time jobs created for settled workers (5 years’ route to Indefinite Leave to Remain), or
  • 10 full-time jobs created for settled workers (3 years’ Accelerated Settlement route to Indefinite Leave to Remain)

However, many entrepreneurs applying for the visa do not fully understand the strict and ever-changing legal requirements.

How do these rules impact entrepreneurs?

Many Tier 1 Entrepreneur visa holders have not been informed properly about the strict criteria to enable their advance preparation. As the employment arrangements needed to be organised as early as possible up to 3 years’ in advance, many Tier 1 Entrepreneurs find themselves falling short of the rules at the last minute. In truth, certain businesses encounter high turnover and may have to combine positions and employees to qualify for each job – this is also subject to narrow conditions.

If you wish to claim you have established two new jobs, the workers and the role must fulfill the Home Office criteria, as set out below:

Understanding the rules for job creation

When must the qualifying jobs be created?

  • After your start-up or new business is set up, or after you have taken over or invested into an existing business
  • The jobs are created as a direct result of your £200,000 or £50,000 Tier 1 Entrepreneur investment

Who is a qualifying worker?

The employees must show that they have settled status. Settled workers generally include:

  • British citizens and those with Right of Abode
  • Citizens of the European Economic Area (EEA) or Switzerland and their family members
  • Holders of Indefinite Leave to Remain (ILR) or Enter (ILE)

How many hours is considered full-time?

30 hours per week.

How long must the jobs have existed?

A minimum of 12 months.

Can I combine to make up for any shortfall?

This is normally accepted for the 5 years’ route towards Indefinite Leave to remain, but at present not accepted for the 3 years’ Accelerated Settlement route.

If your Tier 1 Entrepreneur leave was applied before 6 April 2014

  • one worker for 24 months;
  • one worker for 6 months and one for 18 months;
  • 4 workers for 6 months each

If your Tier 1 Entrepreneur leave was granted after 6 April 2014

  • The job is created and not the person, therefore two people may constitute one job. It must be the same role for 30 hours per week and has lasted for 12 months.
  • When calculating the length of the job, it is important to remember that any time between the workers cannot be included.

Example 1 – One Employee works 20 hours per week. Another works 10 hours per week, they have both worked a combined total of 30 hours and can be used towards one job creation.

Example 2 – The first employer begins work on 2 January 2016. She works 30 hours, but leaves her job on 2 June 2016. The second employer is hired for the same job on 2 July 2016. The two workers can be combined as one job created. However, the job would not qualify until 2 February 2017, as this would result in 12 months from the start date with additional time for the gap in workers.

What if I am part of an Entrepreneurial Team?

Both team members can use the same evidence for job creation.

Note: Multiple Tier 1 (Entrepreneur) migrants who invest in the same business and are not part of an entrepreneurial team may not rely on same evidence to demonstrate qualifying employment.

Maintaining Job Creation for Indefinite Leave to Remain

  • You may use the 2 full-time positions created prior to your Extension application, if they were maintained for at least another 12 months thereafter.
  • However, if the initial jobs no longer exist, you must show creation of 2 new qualifying jobs created after your Extension application.

The above serves as a guide based on the current rules and does not constitute advice. Whatever the circumstances of your business, the Home Office request extensive evidence of job creation. QC Immigration has 100% success rate in all our Tier 1 Entrepreneur visa extension applications to date. Please contact us to discuss your preparation and documents needed.

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