Job creation under minimum wage rate

[Fazie]

Hi there,

I have managed to hire a settled worker for a period of two years at 40 hrs per week. However, last year while I was paying him a minimum rate of £6.5 per hour, I did not notice that the wage rate has gone up to £6.7 from October 1st. So I kept paying him the same rate of £6.5 for another six months.

As soon as I heard about the new wage rate (that was after six months), I filed EYD (Earlier Year Update) which gave me the difference of six months and transferred the difference immediately to my employee's account. I am even happy to attach a signed letter of my employee where he confirms that he has received the difference, along with a copy of EYD.

Can any of the experience candidates suggests wheather case worker would give me points for these six months? What else can I say or add in my application to claim points for this period?

Any response will be highly appreciated. Thanks.

[zimba]

It is your responsibility to pay min wage to your employees as required by the law. It is up to HO to decide if you are eligible for award of points.

[Fazie]

hmmm.. Well, II think the point I can make is it was just a human error as wage rates keep chaning all the time and could easily be missed and so when realized, the difference was immediately paid and filed to HMRC.

Secondly, the criteria for the award of job creation points as per the policy is that the total no of hours should not fall below 30 hrs, which was 100% met.

Lets see how it goes.

[Fazie]

Hi, Can we create three part time employees at 20 hrs each to claim points for two full time employees? That's because the total number of hours combined for three employees (when each of the employee works 20 hrs) sum up to 60 hours, which is also the total no of hours required to create two full time positions.

Any input from someone who has already claimed points in this fashion or who specializes in this category will be highly appreciated.

[CR001]

Please see Multiple Posts/Topics (click)

[zimba]

hmmm.. Well, II think the point I can make is it was just a human error as wage rates keep chaning all the time and could easily be missed and so when realized, the difference was immediately paid and filed to HMRC.

Secondly, the criteria for the award of job creation points as per the policy is that the total no of hours should not fall below 30 hrs, which was 100% met.

Lets see how it goes.

This is at the discretion of HO. Apart from 30 hours per week, you are legally required to pay min wage and immigration rules demand you follow such rules. From Appendix A:

51. The jobs must comply with all relevant UK legislation including, but not limited to, the national Minimum Wage and the Working Time Directive.

[Fazie]

Hi there, I have generated over £100K worth of sales in my business during last three years and gradually transferred 50K worth of director's loan from my personal account to the company account through out the three years period.

However, I have also paid myself £20K worth of director's wages through out the three years period.

My accountant is saying since I have paid myself £20K worth of wages, therefore I have to transfer an additional amount of 20k as director's loan on top of the £50K director's loan I have already transferred. Otherwise, the case worker might interpret that I did transfer the right amount of director's loan, which was £50K, but then taken out £20K in the form of director's wages, leaving my director loan to be a total of £30K.

Any suggestion on how true is my accountant's statement? Do I really have to transfer additional director loan of 20K? Is there a way I can prove that I paid my self wages from the sales my company generated, rather than the director's loan? If my accountnat's statement is wrong, then why policy guidance states that director's remuneration is not part of investment?

[Fazie]

Thanks for the reply Zimba.

Can you please share with me the year and month of policy guidance you are looking into. I just looked into the clause no: 51 of guidance updated in April, 2016. This is what it says:

51.Money for investment can be shared by a team of a maximum of 2 entrepreneurs. Each team
member may apply to come to the UK as a Tier 1 (Entrepreneur) migrant using the same
investment funds. Neither applicant must have used the same funds with any other applicant.
Please note: you should provide all the documents needed for evidence with your own
application. Your team member should also provide all the documents needed with their
application. In some cases this means that your team will need to send 2 sets of documents. It
will help in processing your application if you do not rely on information presented with anyone
else’s application.

It doesn't say anything about the minimum wage rate. May be you have mistakenly assigned it the wrong clause no ..

[seasky]

Thanks for the reply Zimba.

Can you please share with me the year and month of policy guidance you are looking into. I just looked into the clause no: 51 of guidance updated in April, 2016. This is what it says:

51.Money for investment can be shared by a team of a maximum of 2 entrepreneurs. Each team
member may apply to come to the UK as a Tier 1 (Entrepreneur) migrant using the same
investment funds. Neither applicant must have used the same funds with any other applicant.
Please note: you should provide all the documents needed for evidence with your own
application. Your team member should also provide all the documents needed with their
application. In some cases this means that your team will need to send 2 sets of documents. It
will help in processing your application if you do not rely on information presented with anyone
else’s application.

It doesn't say anything about the minimum wage rate. May be you have mistakenly assigned it the wrong clause no ..

really??? you need to find the specific guidance item to figure out that you actually have to pay the minimum wage??

As the saying goes 'not knowing the law does not excuse you from it'. you underpaid your employee and it is your job to know what the minimum wage is. Yes you retroactively fixed it but remember the T1e route is meant for high value migrants and so now it is up to HO case worker to decide. I suggest you make sure you have a very strong application in every other aspect to overcome the fact that you were not even capable of paying the min wage at the time. A min wage job is not exactly going to elicit a lot of respect from the caseworker

"I did not know I had to pay this tax"
"I did not know my restaurant had to have to adhere to this code of food safety"
"I did not know I had to have this insurance..."

If you are taking entrepreneurship seriously then figure out what is needed to run your business

I wonder the following, people who earn min wage are scraping together very little to get buy to feed themselves (and families) they usually would know what the min wage is (as they count every £ they get) how did your employee not know s/he was not getting what entitled too? (I would maybe understand a new immigrant just arrived and does not know english, but this is a settled person)

[Casa]

The same point crossed my mind about the employees being 'happy' to work for less than the minimum wage, without bringing it up with the employer. Don't you have an accountant or even a bookkeeper?

Edit: Ah! I've just noticed that the OP has been banned, due to posting under multiple user names.