From entrepreneur to employee

The Unemployment Security Act is constructed in such a way that if you insure yourself in the right fund on a continuous basis, there will not be any gaps in your unemployment security. You should insure yourself in respect of self-employment with AYT and in respect of salaried employment with an employee fund. It’s best to always change funds as soon as your situation changes, in order to maintain income security without any interruptions. If you are switching to salaried employment, it is worth changing to an employee fund and then changing back to AYT if you restart entrepreneurial activities later.

Transfer of entitlement to entrepreneur's allowance

If you switch from AYT to an employee fund, and you lose your job before the employment condition for employees is met, you are eligible for unemployment allowance from the employee fund on the basis of the earned income level you chose for AYT. This entitlement is valid up until you meet the employment condition for an employee. This is called entrepreneurs’ requalification security.

In order to be covered by entrepreneurs’ requalification security

  • You must join an employee fund within one month of resigning from AYT and your membership fees must be paid up until the resignation date. You are not entitled to requalification security for an entrepreneur if you have been disqualified from membership of AYT.
  • You have accumulated the employment condition for an entrepreneur in AYT. If you have received unemployment allowance from AYT on the basis of the employment condition for an entrepreneur, the requalification security applies to days left over out of the full 500 days from AYT.

Eligibility for entrepreneur requalification security also requires that the employment condition for an entrepreneur is effective should you become unemployed. The employment condition must also be met during a review period of 48 months immediately before unemployment.

Transfer of employee requalification security

If you have not been able to meet the employment condition for an entrepreneur during membership of AYT, and your unemployment security transferred from an employee fund to AYT is still effective, you can join the employee fund whilst retaining your previously earned security. You should, however, ensure that you rejoin the employee fund within one month of leaving AYT. You must also pay AYT's membership fees to the date of resignation.