Self-employed EEA Nationals earning below MET or Min Wage
Posted: Thu Aug 18, 2016 2:46 pm
Am I correct in thinking that the HO considers a person ito be genuinely self-employed as long as their economic activity is not classed as 'marginal'. MET is not a very accurate measure. Consider the following hypothetical scenarios:
1. A self-employed Polish builder has a decent turnover, but the customer of a major job goes bankrupt and doesn't pay. The bad debt is written off resulting in a significantly decreased net profit. The applicant is then below the MET!
2. A Dutch decorator has been genuinely self employed for 3 years. He then hurts his back, knee, hip, etc and chooses to continue working instead of claiming any benefits based on his diminished capacity to work. However, it now takes him considerably longer to get the same jobs done. Thus, if he worked say 30 hours a week for a net profit of £240, he has had to drop half of the jobs and his income has dropped to £120 weekly. But he still works the 30 hours due to his disability/illness. He's below the MET and his hourly rate is just £4.
3. A Slovakian cleaner has had a successful business for the last 4 years. She cleans customers homes as well as commercial offices. Her husband is made redundant and they have to sell their house although it has negative equity as the house prices in the area had taken a dive. They rent a cheap terraced house in a nearby council estate. Soon afterwards she becomes a victim of a number of hate crimes - facial harassment, destruction of property, etc. As a result she starts suffering from depression, which is made worse after Brexit. She wants to go back to Slovakia, but the children have settled in school and her husband has taken loans and started studying for a university degree. The Slovakian cleaner starts to avoid being in public and develops social anxiety. She drops her house cleaning jobs and only keeps some of the office cleaning contracts. She can't bear living in their current home, but they can't afford to move and they are refused any help with rehousing by the local authority. As a result she struggles with getting her work done which takes her longer to do and she earns below the MET and below the national minimum wage.
Are these EEA nationals not exercising treaty rights as self-employed?
1. A self-employed Polish builder has a decent turnover, but the customer of a major job goes bankrupt and doesn't pay. The bad debt is written off resulting in a significantly decreased net profit. The applicant is then below the MET!
2. A Dutch decorator has been genuinely self employed for 3 years. He then hurts his back, knee, hip, etc and chooses to continue working instead of claiming any benefits based on his diminished capacity to work. However, it now takes him considerably longer to get the same jobs done. Thus, if he worked say 30 hours a week for a net profit of £240, he has had to drop half of the jobs and his income has dropped to £120 weekly. But he still works the 30 hours due to his disability/illness. He's below the MET and his hourly rate is just £4.
3. A Slovakian cleaner has had a successful business for the last 4 years. She cleans customers homes as well as commercial offices. Her husband is made redundant and they have to sell their house although it has negative equity as the house prices in the area had taken a dive. They rent a cheap terraced house in a nearby council estate. Soon afterwards she becomes a victim of a number of hate crimes - facial harassment, destruction of property, etc. As a result she starts suffering from depression, which is made worse after Brexit. She wants to go back to Slovakia, but the children have settled in school and her husband has taken loans and started studying for a university degree. The Slovakian cleaner starts to avoid being in public and develops social anxiety. She drops her house cleaning jobs and only keeps some of the office cleaning contracts. She can't bear living in their current home, but they can't afford to move and they are refused any help with rehousing by the local authority. As a result she struggles with getting her work done which takes her longer to do and she earns below the MET and below the national minimum wage.
Are these EEA nationals not exercising treaty rights as self-employed?