Self-Employment and Social Protection in Europe MISSOC NETWORK MEETING Budapest, 19-20 May 2011 Self-Employment and Social Protection in Europe John Ditch and Yves Jorens , academic experts

Self-Employment and Social Protection in Europe OVERVIEW What is self-employment? Statistics and trends Self-employment: Quality & Inequality Challenges for Social Security

Self-Employment and Social Protection in Europe Source: LFS & Lagneaux, DG Empl

Self-Employment and Social Protection in Europe Source: LFS & Lagneaux, DG Empl

Self-Employment and Social Protection in Europe SELF EMPLOYED: ATTITUDES self-fulfilment; freedom; flexibility; income prospects, etc. but... 27 % of the self-employed feel they are at risk of being over-indebted, against 21 % of managers (wage earners having a managing function) [Source: Special Eurobarometer 321 "Poverty and Social exclusion" (August – Sept. 2009), February 2010: Lagneaux. ]

Self-Employment and Social Protection in Europe SELF-EMPLOYED ATTITUDES 13% of self-employed feel ‘left out of society’, against only 8% of managers 46% of managers find it easy for their household to make ends meet, while only 35% of self-employed share that view For the unemployed the equivalent figures are: 50%, 30% and 14% Source: Special Eurobarometer 321 "Poverty and Social exclusion" (August – Sept. 2009), February 2010: Lagneaux. ]

Self-Employment and Social Protection in Europe SELF-EMPLOYMENT AND RISK Pensions Unemployment Maternity Leave SELF-EMPLOYED AND EMPLOYEES: DECREASING GAP IN SOCIAL PROTECTI0N

Self-Employment and Social Protection in Europe CONDITIONALITY AND SELF-EMPLOYMENT Demarcation between direct employment and self-employment Statutory definition and distinction between direct employment and self-employment 3 reactions: absence of statutory definition focus on statutory definition of direct employment statutory definition of both concepts The case law approach : the use of tests definition and demarcation of concepts also include people, who are – although not judicially subordinated – dependent on someone else's business lack of precision, increasing complexity and uncertainty

Self-Employment and Social Protection in Europe Examples of ‘Forced’ or ‘Bogus’ Self-employment Impact of regulation and deregulation More and more sophisticated forms of bogus self-employment eg. simple-firm workers, one-person business, use of different kinds of companies use of triangle relations, male-fide intermediaries take over the role of the gang master The question of qualification is reconsidering qualification made by parties possible ? what is dominant: intention of the parties or factual situation differences between states: quite often do facts prevail, but not always so clear

Self-Employment and Social Protection in Europe POLICY INITIATIVES EU Directive on Self-Employment June 2010 National Examples

Self-Employment and Social Protection in Europe QUESTIONS FOR DISCUSSION How is self-employment defined in each country? Is it possible to agree a common definition? What trends in self-employment have been evident in each country over the past decade?   Where have been the growth areas?   What challenges are faced by social security systems as a result of the growth in self-employment? Is the concept of ‘false’ self-employment recognized or evident in each country? 

Self-Employment and Social Protection in Europe QUESTIONS FOR DISCUSSION How do you draw the demarcation between subordinate employees and self-employed and false (bogus) self-employed?  Is there a tendency to simply abolish the distinction between employees and self-employed and simply refer to a broader category of “workers”? What are the key social security challenges faced by the self-employed and their families in each country?

Self-Employment and Social Protection in Europe QUESTIONS FOR DISCUSSION Are there incentives built into social security systems (unemployment support or social assistance for example) to encourage self-employment? Is a ‘welfare bridge’ being developed that provides a legal framework and financial support to facilitate the transition from unemployment, inactivity or low quality work to self-employment?   Is there a tendency in your country to extend the social security protection of self-employed, with the idea to offer self-employed a protection similar to the one provided to employees?