From an entrepreneur to a wage earner
Transition from an entrepreneur to a wage earner will affect your life at many levels. You need to sort out many practical issues. One of the most important things is to confirm that your unemployment security continues as a wage earner. You may also have to go through major changes when you give up your entrepreneurial lifestyle.
Changing the unemployment fund
When you finish your business and become a wage earner, it makes sense to leave the entrepreneurs’ unemployment fund and join a wage earners’ unemployment fund. If you join a wage earners’ fund within a month of leaving the entrepreneurs’ fund, your unemployment security will not be interrupted.
If your employment stops before the wage earner’s employment condition has been met, the wage earners’ fund will provide you with a daily allowance based on the YEL, MYEL or TyEL income you have earned during your membership in the entrepreneurs’ fund. This requires that you have been a member of the entrepreneurs’ fund for at least 15 months before switching the funds. You should also have paid for your membership fees to the entrepreneurs’ fund until the day you leave it.
As a wage earner your role changes
As a wage earner, you will no longer work as independently as an entrepreneur, but you will work for an employer under their management and supervision. You will not have to be in charge of everything, as it is usually sufficient that you take care of your own contribution.
As a wage earner, you will have an employment relationship with your employer. This will guide your work, pay you a salary, and take care of your pension contributions and your social security.