Running a business during alternation leave

Your eligibility for alternation leave and the amount of the alternation allowance that can be paid to you may be affected by self-employment. The TE Office will make an assessment as to whether yours is a full-time or a part-time business and give a statement to your unemployment fund. A full-time entrepreneur cannot take alternation leave or receive an alternation allowance. A part-time entrepreneur, on the other hand, can take alternation leave and receive an alternation allowance, but their business income will reduce the amount of the allowance. Please let the TE Office and your unemployment fund know if

• you or someone in your family runs a business,
• you or someone in your family owns a farm or a forest estate,
• you work on a commission-only basis,
• you work and invoice for your work through a cooperative society, or
• you receive publishing royalties or intellectual property remunerations.

See Entrepreneurship for more information about who is classed as an entrepreneur in the context of unemployment security.  

Effect of income from part-time self-employment on alternation allowances

If the TE Office concludes that your business counts as part-time self-employment, your unemployment fund can pay you an alternation allowance. Your allowance will be adjusted according to your business income similarly to other income. We usually check your business income from your latest personal tax assessment. If you have only just started your business and have not yet completed a tax return, we will base our assessment of your income on your accounts. If you work and invoice for your work through a collective society or if your work is not based on an employment contract, we base our assessment of your income on your payslips. Please enclose your latest confirmed personal tax assessment when you submit your alternation allowance application to your unemployment fund. If you have only just started your business or your income from your business has changed significantly, you will need to enclose evidence of your monthly business income and expenses from your accounts with your application.