The coronavirus emergency has caused serious concern for UK businesses. This especially affects the revenue of Tier 1 visa holders as well as employment of resident workers and their immigration status to the United Kingdom. Failure to meet the requirements of immigration requirement may lead to a refusal, and may require to close the businesses and leave the UK. The implications are so serious that the UKVI has revised and published its guidance for Tier 1 Entrepreneur visas on December 1 regarding the creation and maintenance of jobs for business visa holders.
If you do not maintain two jobs in 12 months or if you cannot meet the current extension or ILR requirements due to the impact of Covid-19 on your business, you may apply for a temporary visa extension.
Creation of jobs
The key requirement in the application for extending Tier 1 entrepreneurial visas or applying for ILR is to employ 2 settled workers for 12 months each. However, the amendment will apply to the creation of jobs when problems arise with job creation and maintenance due to the impact of Covid-19.
"You no longer need to employ at least 2 people for 12 consecutive months each. The 12 month period you are required to employ someone for can be made up of multiple jobs across different months. "
This can be useful if you had to lay off because of a business slowdown before completing a 12-month employment. For example, a job can meet the employment period of a sales manager who worked for 8 months and the employment period of a stock manager who worked for 4 months.
If the Tier 1 Entrepreneurs were unable to employ staff for 12 months by the time their visa expires, they can apply extension temporarily and must be satisfied that:
- they have created at least 2 jobs for settled workers at the point they make the application
- that they have been unable to meet the normal requirement due to the impact of the pandemic
Coronavirus Job Retention Scheme (Furlough payment)
Many companies have applied for government support to pay for their employees through the Coronavirus job retention scheme, also called 'Furlough.' The government has confirmed that visa holders are also eligible for this schemes and are not considered 'Recourse to Public Funds' if granted.
Under the new rules, time when their employees were furloughed under the UK Government scheme will count towards the 12 month period if they have been paid at least 80% of their normal salary.
Processing period
Prior to Covid-19, applications for Tier 1 Entrepreneur extension and ILR were not available for priority services, and they took a very long time. The Home Office processing time for Tier 1 Entrepreneur applications are being delayed longer than before.
If an applicant is refused for failing to meet the rule requirements arising from a Coronavirus emergency, a careful scrutiny of the immigration decision will be necessary. In some cases, it may be possible to rely on general immigration discretion to depart from the rules, and to challenge any refusal to do so.