In unemployment security, you are considered an entrepreneur firstly always when you are required to take an insurance for your full time work either under the entrepreneurs’ pension legislation (YEL) or farmers’ pension legislation (MYEL). In this case your formal position or holdings in the employing company do not matter.
The definition of entrepreneur used in the unemployment security system is not always similar to the definitions used in other legislation. For example the percentages of holdings in entrepreneurship are different in the unemployment security legislation and the entrepreneurs’ pension legislation. For this reason in some cases you might be considered an entrepreneur in unemployment security legislation even if you were not YEL or MYEL obliged.
Secondly, you can be considered an entrepreneur in unemployment security as a partial owner of a limited liability company or as a family member of an entrepreneur, even if you belong under some other than an entrepreneur’s pension insurance. Defining the entrepreneurial position is thus handled both based on your personal ownership and that of your family’s, as well as whether you work in the company in a managerial position. You are considered to be in managerial position, if you are the CEO of an LLC, a board member or in other such position. Family members under the unemployment security legislation include persons living in the same household: spouse (also common-law spouse), children, grandchildren, parents and grandparents.
You are considered an entrepreneur in unemployment security in different forms of business as follows:
When you work in a limited liability company, under unemployment security you are always considered an entrepreneur if you work for income without employment relationship or office.You can also be seen as an entrepreneur in unemployment security by your holdings. In central position one has a defined authority which in a limited liability company can be achieved by owning shares. Just owning shares in a limited liability company does not make you an entrepreneur in unemployment security: you need to also work in the company which you own.
You are seen as an entrepreneur when you own a part of the company,
- if you work in a managerial position in a limited liability company of which
- if you work in a limited liability company, of which
- you alone own at least 15 per cent,
- you together with your family own at least 30 per cent, or
- your family owns at least 30 per cent
- you alone own at least 50 per cent,
- you together with your family own at least 50 per cent, or
- your family owns at least 50 per cent of the company.
Please notice that when calculating your partial ownership also indirect ownership through other companies and communities is taken into consideration. Indirect ownership is considered if you or your family members or you together with your family members own at least half of this kind of so-called indirect community, or you have similar authority by other means.
Just owning or partially owning a company does not make you an entrepreneur in unemployment security: you need to also work in the company in the aforementioned way.
As a partner in a joint-stock company or a responsible partner in a limited partnership you are always an entrepreneur, unless your authority as a partner has been substantially limited in the partnership contract. Also the spouse or family member living in the same household as such a partner is considered an entrepreneur if they work in the company in question. A silent partner in a limited partnership is not an entrepreneur in unemployment security.
In a co-operative, the necessary authority is based on the membership in the co-op. In unemployment security you are considered an entrepreneur when you are a member of a co-op which has a maximum of six (6) members. Another precondition is that all members have an equal amount of votes. In co-operatives with more than six members your authority and managerial position are evaluated as explained for limited liability companies. In this case also the authority and ownership of your family member is noted similarly.
A private enterpriser is always an entrepreneur in unemployment security. Also a family member living in the same household with the private enterpriser is considered an entrepreneur if he or she works for the private enterpriser.
When you have farming activities, you are an entrepreneur under unemployment security when you are a farmer under the farmers’ pension legislation. Farmer means:
1) a person who has farming activities and the farming activities take place on a farm with at least five hectares of agricultural land;
2) a fisherman, who fishes professionally without being in an employment relationship;
3) a reindeer keeper, who works in reindeer husbandry for themselves, their family member or a cooperative of reindeer herdsmen;
4) a person, who does work mentioned in 1, 2 or 3 as a family member or spouse of the farming entrepreneur;