Opening a Swiss Company to get Unemployment Insurance

Hi. I have been self-employed in Switzerland for several years now. I am considering opening a GmbH in order to join the unemployment insurance scheme offered by Swiss social security.

Will opening a company and becoming an employee of that company let me benefit from unemployment insurance like all employees in Switzerland?

Hi there,

Although a company's owners, executives and/or directors are obligated to pay premiums for unemployment insurance like all other employees in Switzerland, they do not - in most cases - receive unemployment insurance benefits if/when they become unemployed.

The reason for this is that Swiss unemployment insurance schemes pay out benefits to employees who lose their employment due to circumstances beyond their control - such as being laid off or fired. Because executives, owners and directors exercise a high level of control over a company, it is assumed that they would have a say in their employment being terminated.

This rule also extends to an executive's family members who are employed in the same company.

Ultimately, it is up to the unemployment insurance office to investigate an individual's position at their former employer and decide on whether or not they are eligible to receive unemployment benefits. However, as the owner or sole employee of your own company, you will not normally be eligible for unemployment benefits.

Best regards from Moneyguru

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