While the number of construction jobs is declining, the number of construction companies is increasing. This increase is entirely due to laid-off construction workers who start working as self-employed while retaining benefits.
Becoming a self-employed person with unemployment benefits
Many construction workers who become unemployed and receive unemployment benefits consider starting their own handyman business. Because in a number of respects, a one-man life as a self-employed person is more attractive than an employed job:
- within your own company you can organize the work yourself and better tailor it to your personal qualities;
- Self-employed people also have more freedom to develop their own plans and ideas.
And the time that one is unemployed can be used very well to prepare for a life as a self-employed person. The Employee Insurance Agency (UWV) does not prevent unemployed people from building a self-employed life while retaining benefits. In fact, unemployed people are strongly encouraged to start their own business.
Starting your own business while receiving unemployment benefits
If unemployed construction workers want to start their own handyman business on the basis of unemployment benefit, this will of course have consequences for the amount of their unemployment benefit. From 2013 they can opt for two variants:
- or cessation of the benefit during the hours when one is active on one’s own account. UWV then deducts those hours from the hours for which one receives benefits;
- or settle for a fixed percentage discount on the unemployment benefit for 26 weeks.
Trade unions are not in favor of starting a business on the basis of unemployment benefits
The unions are not very pleased with these developments. People are even talking about an excessively flexible culture. Companies are increasingly passing on the risks to their staff. After all, a self-employed person can let you come and go when it suits you. And, very advantageously, as an entrepreneur you have no fixed costs.
According to the unions, all this not only leads to too many self-employed people and too little work, but also to work for too low compensation. Hourly rates of 15 to 16 euros are no exception, while an hourly rate of approximately 35 euros is very common for a self-employed person without employees.
Becoming self-employed while receiving benefits can lead to unfair competition
It is therefore a thorn in the side of the trade union movement that the UWV encourages unemployed construction workers to start their own company. In that case, the self-employed person’s earnings are offset against the unemployment benefit and that is a breeding ground for unfair competition.
After all, laid-off construction workers are assured of an income through the Unemployment Insurance Act and are quickly inclined to work for less than the price paid. The distance between employees who are covered by the construction collective labor agreement and construction workers who work on their own account is therefore increasing. It is therefore no secret that many self-employed people are around the poverty line. There is little or no money for disability insurance or a decent pension provision.
You do business at your own expense and risk
The trade union movement is therefore of the opinion that the government should not continue this arrangement. After all, you do business at your own expense and risk and one may wonder whether a self-employed person who does business while retaining benefits can be regarded as an entrepreneur. After all, it does not operate entirely on its own behalf, which encourages unfair competition. After all, the rules for winning orders should be the same for everyone!