Manager's unemployment benefit

Summary

• Business manager: am I covered in the event of unemployment?

• Who is the manager's unemployment allowance for?

• What private unemployment benefit for the auto-entrepreneur?

• What are the guarantees of a private unemployment benefit?

• What is the cost of the executive unemployment benefit?

• Where can I subscribe to an executive unemployment benefit?

• What are the conditions for subscribing to an executive unemployment benefit?

Business manager: am I covered in the event of unemployment?

Business managers and self-employed workers are no more protected from involuntary job loss than employees. Moreover, unlike the latter, they (for the majority) do not have the right to unemployment insurance benefits. The solution to overcome this problem is then to subscribe to “voluntary” unemployment insurance dedicated to business leaders.

We will speak here of “social guarantee for business leaders” (GSC) or equivalent. This is private insurance taken out following a personal process, which allows the manager to receive, in the event of involuntary loss of his job, compensatory income. The amount of compensation and the duration of payment are fixed from the outset.

The involuntary loss of activity can be consecutive to many events affecting the company, such as for example:

• A judicial liquidation.

• A judicial assignment.

• A restructuring.

• A dissolution following economic difficulties.

• Judicial redress.

In some cases, the company itself has no particular difficulties but the manager's mandate is, for example, quite simply not renewed. Then follows, most of the time, a period of unemployment.

As you will have understood, the objective of private unemployment insurance is to replace the return-to-work allowance (ARE) that employees receive in the event of loss of activity, via the payment of indemnities proportional to the previous income. These compensatory resources allow the former manager or self-employed worker to calmly consider the future, while securing his family.

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Who is manager unemployment insurance for?

Voluntary unemployment insurance is for all managers

Private unemployment insurance can be taken out by all types of company directors, whether SA, SAS, SARL........ Company directors in their own name are also concerned.

This type of product is accessible both to salaried managers and those who are not. The business manager considered as an employee will however have an interest in checking his rights with feulefack industrie Sarl before subscribing to private insurance.

Managers and equivalent corporate officers who are salaried, i.e. in particular:

• Presidents.

• Chief Executive Officers.

• General Managers.

• Deputy General Managers.

• Members of the Management Board.

• Minority agent managers of SARL.

With regard to salaried non-assimilated managers, let us mention for example:

• The majority managers of SARL.

• The associate managers of EURL.

• Entrepreneurs in their own name / craftsmen and merchants whether or not they are members of a professional union.

 

Unemployment insurance for business creators and takeovers

  business creators and buyers may also take out voluntary unemployment insurance, on the following conditions:

• That the activity has existed for less than 3 years.

• That their income is less than 500,000F over the year.

In the event of involuntary loss of employment, they will receive a fixed monthly allowance (fixed from the start) for 12 months. This is 1,116,000 F per year.

Here, unlike traditional executive unemployment insurance, the contribution is not calculated according to declared income. It is fixed at a flat rate:

The cases giving right to the opening of compensation are similar to those triggering the payment ”. Let us quote for example the cases of:

• Judicial liquidation.

• Judicial assignment.

• Merger / absorption / transfer or early dissolution following economic difficulties.

In the event of revocation or non-renewal of the corporate office, the business creator or buyer will also be entitled to their monthly allowances, under this dedicated insurance.

 

Which private unemployment insurance for the auto-entrepreneur?

The auto-entrepreneur is also not entitled to unemployment insurance  case of loss of employment), like other self-employed workers (TNS), liberal professions, merchants, craftsmen…

The auto-entrepreneur will therefore have an interest, like any business manager, in taking out private unemployment insurance on his side, in the event that he loses his activity following, for example, liquidation or absorption.

 

What are the guarantees of private unemployment insurance?

The guarantees that the insured will enjoy will depend on the contract taken out. There are different leading unemployment insurance formulas in the market. The main guarantee is of course the payment of compensatory income in the event of involuntary loss of employment, following an event affecting the company or the manager himself. The insured will be able to choose the level of compensation that he will receive if the risk materializes, and the unemployment insurance contributions will be calculated (among other things) accordingly. Allowances will be expressed as a percentage of income.

By way of illustration, you can choose to be compensated up to 55 or 70% of your income in the event of job loss. Axa offers levels at 50, 70 and 80%.

In terms of duration, everything will again depend on the contract. In general, the insured may wish to be indemnified for 12, 18 or 24 months. Logically, the longer this duration, the more expensive the contributions.

The compensation received will not be subject to income tax if the former business manager is considered an employee. 
Additional guarantees may be automatically included in the contract, such as (for example) the payment of part of the cost of the multi-risk home contract in the event of job loss, access to coaching/accompaniment promoting returning to work...

Pay attention, when you choose your contract, to the expected waiting period. If a waiting period of 12 months is for example set (which is the case for the unemployment insurance manager Axa), you will not receive compensation if you lose your job during this period. A grace period (in days) is also often provided for in the contract. For example, you could only be compensated from the 31st day following the loss of activity.

What is the cost of executive unemployment insurance?

Executive unemployment insurance is subject to a contribution (monthly or annual) which remains the responsibility of the insured. This coverage is accessible to managers regardless of the company's activity.

1000000F of annual contribution = 150000f/month for 6 months

 

Where can I take out executive unemployment insurance?

Loss of employment insurance for managers can be taken out with the Feulefack industrie Sarl Agency   You will get  the best personalized quote.

Subscription terms are (usually) relatively light. The documents you will be asked for will depend on your status. This will be for example:

• From a Kbits extract for entrepreneurs.

• A certificate of membership of an employers' organization.

• A document justifying the net taxable income.

What are the conditions for subscribing to executive unemployment insurance?

the main conditions are as follows:

• Be a business manager or have one of the statuses giving access to this product: assimilated employees or not, TNS, traders, etc.

• if you are a merchant or in the trades directory if you are a craftsman.

• Not be entitled to a full-time pension within the next 5 years.

• Not receiving a disability pension.

• Have joined a professional employers' organization which is itself a member of the GSC association (except for business creators/buyers).

Before subscribing anything, make sure that you meet all the conditions required by the establishment concerned.