What if a light entrepreneur can no longer get a job? As a Truster light entrepreneur, you are in a good position in many ways. You can easily try out your next idea or make quick solutions if business is slow or light entrepreneurship is not your thing. But we know that things are not always that simple. All kinds of situations, such as involuntary unemployment, are worth preparing for well in advance. At the very least, it's good to know how unemployment insurance for the self-employed works.
What kind of unemployment protection is there for a light entrepreneur?
Unemployment cover for a self-employed person without a business ID can be very similar to that of a self-employed person. Many people think that a self-employed person or a light entrepreneur cannot be covered by the unemployment fund, but this is not the case. An entrepreneur or light entrepreneur can equally be a member of an unemployment fund. A light entrepreneur who becomes unemployed can therefore receive Kela's basic daily allowance and the earnings-related daily allowance paid by an unemployment fund in the same way as an entrepreneur or employee.
What does the work condition mean?
The employment condition determines whether you receive Kela's basic daily allowance as an unemployed person, and perhaps also a daily earnings-related allowance paid by an unemployment fund.
For an employee, the working condition means that he or she must have worked at least 18 hours a week for at least six months during the previous 28 months.
For an entrepreneur, the condition of having worked as an entrepreneur for at least 15 months in the previous 48 months, and having earned enough during that period. However, for a light entrepreneur, the employment condition for an employee usually applies.
Does a part-time light entrepreneur meet the employment condition?
It depends on what you do in addition to light entrepreneurship. If you work full-time and do a side job as a light entrepreneur, you will of course meet the employment condition. You may also be covered by an unemployment fund through your day job, in which case you will receive an earnings-related daily allowance in the event of unemployment.
If you work as a light entrepreneur alongside your studies or otherwise only on a small scale, you do not meet the employment condition. You will also not be entitled to basic unemployment benefit or earnings-related allowance. If you want to improve your unemployment protection, consider joining the unemployment fund for employees.
What if the employment condition is not met?
If you do not meet the employment condition and you do not receive your daily allowance, you can apply for Kela's labour market subsidy. You can also get labour market subsidy if you are just starting out in working life after your studies or if you have already received basic daily allowance and earnings-related allowance for 400 days and have not yet found a job. Your income, and sometimes your parents' income, will affect the amount of labour market subsidy you receive.
How can a full-time light entrepreneur improve his/her unemployment protection?
You can do the same things an entrepreneur would do. You can take out a self-employed person's pension insurance (YEL insurance) and become a member of an entrepreneur's fund. Make sure that you have enough YEL insurance, because if you become unemployed, the amount of the daily allowance will be based on the YEL income you declare.
Will my unemployment benefit be cut off if I work as an unemployed jobseeker as a light entrepreneur?
Fortunately, the unemployment benefit system is not so rigid. During the first four months of unemployment, you can work as much as you like. You can also get unemployment benefit at the same time, but adjusted to your income.
After four months, the TE Office will review your situation. If the TE Office thinks you are working part-time, you will continue to receive adjusted unemployment benefit. If the TE Office considers that you could not take up a full-time job in addition to your light self-employment, you will be interpreted as a full-time self-employed person and will no longer receive benefits.
If you occasionally do odd jobs for different subscribers, you do not have to report them to the TE Office. Temporary work is also a nice change of pace. Perhaps you will get an insight or a new idea that you could try out on a wider scale as a light entrepreneur?