Ending work in the company
A full-time entrepreneur is not entitled to unemployment benefits. If you have been employed in your entrepreneurship full-time, a precondition for receiving unemployment benefits is ending work in the company or ending the business altogether.
Employment in an entrepreneurship has ended firstly if the person’s ability to work has decreased permanently and significantly so that they have received the maximum of sickness daily allowance and are still unable to work. In addition, it is required that the application for disability pension is pending or declined.
- After this the person can take part in minor administrative tasks.
- However minor participation in productive and financial tasks is a hindrance to payments of daily allowance.
Secondly, the employment is seen as ended when the person is an entrepreneur similar to an employee, who can show a clarification about the ending of commissioned work and who is not seen as employed full-time in other commissioned work as an entrepreneur. The daily allowance could thus be paid immediately after the commission has ended.
- An entrepreneur similar to an employee means an entrepreneur who personally completes the work in the way the commissioner has ordered, is in commission relationship with the same few commissioners and has no fixed place of buying, selling or other such place of business. It is also required that during the past year (from registering as a jobseeker) they have not had employees in their service for completing the commissions, except for occasionally.
- A family member who has worked in the family business is never seen as an entrepreneur similar to an employee.
Thirdly, the employment can be seen as ended when the entrepreneurship has to be seen as seasonal and the season is over.
- Seasonal entrepreneurship covers work that due to natural circumstances can be practiced approximately for a maximum of 6 months per year altogether.
- Income from entrepreneurship and its profitability does not matter, as only the hindrance of the company’s business is essential,
A family member employed full-time in the family business
In some situations the family member of the entrepreneur, who has been employed in the family business full-time, can be paid unemployment benefits after the employment has ended, even if the business otherwise still continues. This possibility only applies to such family members who do not and have not in the past two years owned at least 15 per cent of the share capital of a limited liability company, or shareholder voices, or other similar authority in other company forms.
The employment of the entrepreneur’s family member has ended if:
- His ability to work has decreased permanently and significantly.
- The season for seasonal entrepreneurship has ended.
- His employment in the business has ended and he has been employed full-time in the business only occasionally (max. six (6) months during a two year examination period).
- His employment in the business has ended and the employment has only been based on taking part in employment promoting services or training during voluntary studies.
- His employment has ended due to terminating a production line or other similar reason.
- He has been laid off completely and the company has terminated at least one other employee who is not a family member, due to production or financial reasons within a one year examination period. The family member cannot be YEL/MYEL insured in this case.
- His work and salary payment have been suspended completely due to for example a fire or an exceptional natural event and there is at least one other employee, who is not a family member, whose work and salary payment have been suspended for the same reason. The family member cannot be YEL/MYEL insured in this case either.
- His employment has ended due to the permanent weakening of the entrepreneurial activities and the income generated by the entrepreneurial activity per person is less than the amount that shows the significance of entrepreneurship according to the unemployment security legislation (1027,17 e/month) and there are no other employees except for family members of the entrepreneur.
Ending entrepreneurial activities
For a private trader, the entrepreneurial activities can be seen ended also when the production and financial activities have ended and the person has given up the possible YEL/MYEL insurance. For other entrepreneurs the entrepreneurial activities are considered ended if:
- the production and financial business have ended and the person has:
- the partners have agreed on the termination for other business forms than limited liability company;
- the limited liability company or co-op is in liquidation;
- a court of law has set the business in bankruptcy by motion of the debtor or creditor;
- ended the YEL/MYEL insurance;
- left a notification with the tax authorities about removing the company from the payroll tax register;
- left a notification with the tax authorities about removing the company from the employer register; and
- given the tax authorities either a notification about removing the company from the VAT register or about discontinuing the entrepreneurial activities; or
- by other reasons comparable to points 1–4 it is obvious that the production and financial activities have ended completely.
Presenting a sales profit calculation of the company’s possessions does not pay a role in assessing the termination of entrepreneurial activities. Also, giving up the company’s facilities is not required if the other preconditions are met. The company can also remain in the company register without it having effect when assessing the ending of the business.