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

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

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

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

5. 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. ]

6. 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. ]

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

8. 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

9. 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

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

11. 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? 

12. 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?

13. 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?