Rejection of self-employed status
Rejection of self-employed status
"I've been a property broker in Geneva for several years and would like to become self-employed. I sent my compensation fund all my email exchanges with my clients (real estate agents, owners and buyers) to prove my activity. The fund refused my application, told me that I had to have premises separate from those where I live, as well as employees, and also wrote to all my clients, calling them "employers"! I then received three cancellations of sales mandates with major landlords who took fright. Is this normal? What should I do?"
Marie, Geneva
To be recognised as self-employed under social insurance law, you must assume the economic risk inherent in your gainful activity, i.e. have made significant investments for professional purposes, have your own business premises, obtain mandates and assume the general costs, such as the risk associated with collecting your fees. You must also be able to organise your work freely, both in terms of the way you do it and your working hours, and have the option of hiring your own employees if you wish.
People who are self-employed in Switzerland are required to pay contributions to the AHV, IV and EO schemes. Their self-employed income, as assessed by direct federal tax, is used as the basis for calculating contributions, which are almost twice as high as those paid by employees, half of which must be paid by employers.
The compensation funds determine whether a person can be considered self-employed by assessing the criteria listed above on a case-by-case basis, especially when the contributions due have not been paid regularly. According to the Directives on contributions by self-employed workers and persons not in gainful employment in the AVS, AI and APG, "when the insured person is refused self-employed status, both the decision on contributions and the decision on status must be notified to the person concerned and to the employer in a decision subject to opposition". In fact, the persons to whom contributions may be claimed must be informed of the situation, in particular the "client" who, by virtue of his position, is more likely to have the role of "employer".
That said, in the case you describe, it seems doubtful that you are in a legal relationship that can be described as a contract of employment with the multiple owners who bring you sales files and that they can all be considered your employers. You should therefore contact your solicitor to consider appealing against the decision you have been notified of.
