Freelance, Self-Employed, What Are Your Unemployment Rights?

Freelance and unemployment is a huge topic here! Self-employed workers often think about maintaining their unemployment rights when they want to start their own business.

And once freelance, what happens in the event of a decline in activity, or even liquidation of the company? Are we entitled to compensation?

This article answers all your questions about self-employment status and unemployment!

Become a Freelancer During Your Unemployment Period

Finding yourself without a job is sometimes an opportunity to start your own business! When you lose your job and you have a very specific skill to sell, becoming a freelancer seems like the perfect solution.

Especially since it’s possible to combine your allowance with building your business. It removes the financial burden that may represent the launch of an activity…

At least you don’t have to stress if you don’t generate income immediately. Conversely, you have time to think about the feasibility of your project, develop your proposals, intensify your communication strategy, and begin prospecting.

Let’s look at the criteria for becoming self-employed when unemployed together…

Laws that authorize the accumulation of unemployment and entrepreneurship

Unemployment insurance encourages the resumption of activity after one has lost a job. Even if it’s unpaid! Therefore, regardless of the chosen legal status (micro-enterprise, sole proprietorship, SASU, etc.), you can combine unemployment and freelancing.

The goal is to guarantee a monthly income equal to your previous salary, even if you start your own business.

unemployment benefit amount

No wonder, whether you start an activity or not, the amount of your perks remains the same! And if you earn income while your unemployment rights are still running, they are indexed into your remuneration.

This indexation involves subtracting 70% of the income from your unemployment benefits from your self-employed activity.

For example, imagine you are currently receiving €1,200 in unemployment benefits. Your activity, after a few weeks, allows you to earn €600 income per month. Pôle Emploi will calculate this:

1,200 – (70% x 600) = €780

You will then receive €780 in unemployment benefits, in addition to €600 in self-employed income.

Getting Unemployment Benefits in Advance (ARCE)

Did you know that it is possible to receive 45% of your unemployment benefits when setting up your business?

In fact, some activities require significant investment in terms of hardware or software. Instead of taking a loan from a bank (with interest etc.) or dipping into your savings (always useful for maintaining a safety net), you can request payment of 45% unemployment benefits.

ARCE (Assistance for Business Recovery or Creation) is paid in 2 installments:

  • As soon as you meet the conditions for providing assistance, the first payment is made.
  • The second one is paid after 6 months, provided you are still working.

Good to know: ARCE is allocated upon opening of rights and cannot be clubbed with unemployment benefits. Think carefully before applying and make your choice based on the nature of your business and your financial capabilities.

What are the unemployment rights of the self-employed?

Another essential question: What about unemployment rights when you’re already self-employed? More recently, there is an allowance called “Allowance for Independent Workers (ATI)” that allows freelancers to receive compensation in the event of a shutdown of activity.

conditions of overpayment

A self-employed employee can claim an excess regardless of the legal form of his business, provided he meets these criteria:

  • Be self-employed in the same company for at least 2 years.
  • The cessation of the activity should follow the liquidation or realization.
  • Register with Ple Emploi and actively seek new employment.
  • Have earned income of at least €10,000 per year in the last 2 years of activity (in case of micro enterprise, €10,000 should correspond to turnover after tax allowance).
  • Keep personal resources less than the amount of the RSA.

Please note that a Partner, Sole Manager or Salaried Manager cannot claim excess. If you are an employee of your company, “classic” unemployment benefits apply.

amount of excess

The amount of ATI varies according to the income generated during your self-employed activity. The calculation is made on the basis of the last two calendar years before expiration.

In all cases, the compensation cannot be less than 600€/month (ie 19.73€/day) nor more than 800€/month (26.30€/day).

You can use the simulator offered by Pôle Emploi to find out the amount of your overdose.

overpayment period

The payment of this unemployment benefits for freelancers starts from the day you register with Ple Employee. It is paid from the first month, without deferment or waiting period, for a maximum period of 6 months.

Veg Portage and Berojgari, a winning pair

Pay Portage and Unemployment

Want to secure your future? Wage Portage is a study solution for you to take advantage of many social benefits including unemployment rights while enjoying the freedom of your enterprise.

Concept of Pay Portage

We have already devoted many articles to veg portage, how it works and its benefits for the freelancer.

In short: When you subscribe to the Pay Portage Agreement, you become an employee. You have your freedom as a self-employed employee, because you define your offers, you prospect, you negotiate contracts and you work your way up.

However, when signing the service contract, it is the wage portage company that intervenes. It takes management fees but all social contributions (including unemployment contributions) before paying you a salary.

Therefore, you are still free, but you benefit from the same unemployment benefits as employees.

Also read: How Veg Portage Works?

What are the eligibility conditions for unemployment benefits for a laid-off employee?

Wage Portage Company fulfills all the obligations of an employer. It therefore transfers unemployment-related Social Security contributions to URSSAF. This allows the employee to contribute and receive this insurance in the event of a decline or termination of activity.

However, to receive unemployment benefits, the freelancer must have worked:

  • At least 88 days (4 months cumulative).
  • or 610 hours during the 28 months preceding the termination of your last performance or breach of contract. For self-employed workers over the age of 53, the period increases to 36 months.

In addition, the activity of the employee carried out must necessarily conform to the norms laid down in Ordinance n ° 2015-380 of April 2, 2015, relating to pay portage:

  • Supported freelance concern services missions for companies.
  • Umbrella Company is up to date with self-employed employee’s tax deductions and social contributions.
  • If the freelancer is on a fixed term contract, it should not exceed 18 months (renewals included).

To claim their rights on unemployment, the self-employed employee must register with Pôle Emploi and provide a certificate from the Wage Portage company. This document will serve as proof of the hours or days worked before his last mission.

Also read: Veg Portage VS Freelance: Which To Choose?

Calculation of unemployment benefits for self-employed person in wage portage

Pôle Emploi uses the past 12 months’ gross income to determine the employee’s reference remuneration. This remuneration is divided by the number of days worked to determine the daily reference pay (SJR).

The elements that enter into the calculation of remuneration are:

  • Gross Fixed Monthly Salary.
  • Variable part of salary (commission), if it exists.
  • Any overtime (maximum 260 hours per year).
  • Bonus.

For the calculation itself, Pôle Emploi uses two formulas and chooses the one that produces the most profitable results:

  • 57% of RDS
  • 40.4% of SJR + €12.12 . a flat rate of

Good to know: regardless of the outcome, the daily allowance will be at least €29.38. Conversely, it cannot exceed 75% of the SJR.

1. Since thener January 2021, there is a disappointing system related to unemployment benefits for freelancers:

  • If the daily allowance to be paid is between €84.33 and €120.47, it is automatically capped at €84.33 from the 7th month.
  • If the daily allowance exceeds €120.47, a reduction of 30% applies from the 7th month onwards.

our tip

Freelance and unemployment are compatible. Allowances change according to the chosen position, your status and your previous income.

If you have created a micro-enterprise, EI, EURL… or any other legal form where you are a self-employed employee, you can opt for TNS Unemployment Guarantee Agreement. The latter allows you to complete the ATI in the event of a fall or loss of income after a slowdown or stagnation in your activity.

You can maintain your level of income in the medium term. The duration and indemnity depend on the contract drawn up. In addition, some future contracts are eligible for Madeline Law. That is to say, you can deduct some part of the contribution from your charges.

And don’t forget that you need regular missions to ensure regular income. You can register on Kodur and thus, apply for multiple offers, every day!

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