Unemployment benefits for those working in family businesses will change on 1 July 2019

From 1 July 2019, a person working in a family business without a share of ownership in the company is considered a salaried person with regard to unemployment security. In the past, a family member was considered an entrepreneur, even though he/she had no share of ownership in the company.

A family member of an entrepreneur who has been a member of an unemployment fund for entrepreneurs and who does not have a share of ownership in the business, should transfer their membership to an unemployment fund for wage earners right from the beginning of July. A work requirement that is fulfilled in the unemployment fund for entrepreneurs can be transferred to the unemployment fund for wage earners on the basis of the so-called retroactive protection, if you join the new fund within one month of leaving the previous fund. A work requirement only fulfilled partially cannot be transferred to the new unemployment fund.

If work in a family business is only starting now, it is no longer worthwhile to join the unemployment fund for entrepreneurs, unless the intention is to acquire a share of ownership in the company or otherwise transfer to entrepreneurial activities. An employment condition only fulfilled partially cannot be transferred to the new unemployment fund. The change does not apply to you if you have any type of share of ownership in the family business. People who work in a family-owned proprietorship are also excluded from this change.

More information: TYJ Bulletin