Light entrepreneurship attracts more and more people to accept work, but many do not know how it affects unemployment security. From the perspective of the unemployment fund, light entrepreneurship is treated in the same way as other forms of entrepreneurship.
If you work as a light entrepreneur, the labour market authority will assess whether your activity is full-time or part-time. This assessment determines your entitlement to unemployment benefits.
A light entrepreneur whose business activity is considered part-time may belong to the A-kassa unemployment fund and receive earnings-related allowance if the employment condition is met. If a full-time entrepreneur was already a member of an employee unemployment fund before starting the business activity, they may retain membership in the employee fund for up to 18 months after starting the business. A full-time entrepreneur cannot receive earnings-related allowance from an employee fund but may join an entrepreneurs’ unemployment fund. In that case, they may receive earnings-related allowance from the entrepreneurs’ fund if the membership and employment conditions are met.
For unemployment security purposes, the decisive factor is not the name of the contract but the actual nature of the work. Legislation determines whether the situation constitutes an employment relationship or entrepreneurship..
Check these before starting the work
Summer employees face a particular risk in situations where an assignment contract is presented as an employment relationship. A young person may be offered a summer job but when signing the agreement it turns out that the arrangement is actually an assignment or light entrepreneurship.
A person working as a light entrepreneur is responsible for matters such as insurance, pension contributions and taxation. Work performed as an entrepreneur does not accumulate the employment condition for employees.
Tarkista nämä ennen kuin aloitat työn
A-kassa recommends clarifying the following before accepting the agreement:
- Is this a genuine employment relationship or work comparable to business activity?
- If the work is comparable to business activity, is the activity assessed as full-time or part-time?
- Does the employment condition accumulate as an employee or as an entrepreneur?
- How do the earnings affect a possible adjusted unemployment allowance?
In unclear situations, it is advisable to contact the labour market authority in your area before starting the work. This helps to ensure that your unemployment security is not unexpectedly affected. In matters concerning employment relationships, it is also advisable to contact your trade union.