Job Creation Problem

[IanInLondon]

Hi there,

I've invested the money into a UK company and became a director of the company. As the extension requires creating two jobs, I've read the job creation requirement guidance and would like to hire two shareholders of the company who are never on the payslip before. Could anyone please advise me if this gonna work?

Thank you very much!

[seasky]

Are they actually going to do a job?

[IanInLondon]

yes, and they are very important to the company. one of them is the cofounder of the company, he did a lot of work to the company but never got paid for his hard work.

[IanInLondon]

and how can I prove whether they have actually done the job when I apply for the visa extension?
Thank you very much for your reply

[zimba]

Yes you can. However as you joined the company, anyone who leave must be replaced so that the net increase in the jobs remains 2 or more at all times.

[seasky]

Yes you can. However as you joined the company, anyone who leave must be replaced so that the net increase in the jobs remains 2 or more at all times.

As OP is a t1e visa holder his employment in the company has no bearing on job creation

[seasky]

yes, and they are very important to the company. one of them is the cofounder of the company, he did a lot of work to the company but never got paid for his hard work.

There is nothing in the immigration rules that says shareholders cannot be employees for purpose of job creation. They also don't ask in the forms if an employee is a shareholder. (all my employees have stock options and one actual shares, a small amount, not a founder)

saying that huge alarm bells would ring in CW mind in this case. They will see s/he is a major shareholder from companies house. When you are interviewed on premise it will be clear your "employee" is actually a founder. That is not really the intent of job creation for this visa is it?

Another way of thinking about it is that you did not create a job just converted a sweat equity paid job to PAYE.

[IanInLondon]

Yes you can. However as you joined the company, anyone who leave must be replaced so that the net increase in the jobs remains 2 or more at all times.

OK, thanks!

[IanInLondon]

yes, and they are very important to the company. one of them is the cofounder of the company, he did a lot of work to the company but never got paid for his hard work.

There is nothing in the immigration rules that says shareholders cannot be employees for purpose of job creation. They also don't ask in the forms if an employee is a shareholder. (all my employees have stock options and one actual shares, a small amount, not a founder)

saying that huge alarm bells would ring in CW mind in this case. They will see s/he is a major shareholder from companies house. When you are interviewed on premise it will be clear your "employee" is actually a founder. That is not really the intent of job creation for this visa is it?

Another way of thinking about it is that you did not create a job just converted a sweat equity paid job to PAYE.

No, they're all native British. Thank you for your advice. I'll think about it.

[seasky]

yes, and they are very important to the company. one of them is the cofounder of the company, he did a lot of work to the company but never got paid for his hard work.

There is nothing in the immigration rules that says shareholders cannot be employees for purpose of job creation. They also don't ask in the forms if an employee is a shareholder. (all my employees have stock options and one actual shares, a small amount, not a founder)

saying that huge alarm bells would ring in CW mind in this case. They will see s/he is a major shareholder from companies house. When you are interviewed on premise it will be clear your "employee" is actually a founder. That is not really the intent of job creation for this visa is it?

Another way of thinking about it is that you did not create a job just converted a sweat equity paid job to PAYE.

No, they're all native British. Thank you for your advice. I'll think about it.

I think you missed my point. converting a (british) founder from non PAYE to PAYE is risky. You did not really create a job and -could- be misconstrued as just an investment into a company not actual job creation. Hire someone new, now that is job creation.

[marcnath]

As long as you are not creating a fraudulent job (and your description seems to indicate you are not) you should have no problem.
CWs have to follow the rules and HAVE TO give you points for job creation if you meet the requirements irrespective of whether they are a shareholder, have done unpaid work before, etc.
Yes, CWs can reject based on genuineness, but using this as a reason for failing genuineness test would, in my opinion, be non sustainable. And we have now been seeing such decisions overturned in AR - which is good news for genuine entrepreneurs.
If the job is fraudulent, you have bigger problems than genuineness test.