If you’re employed by someone else and also registered as self-employed, you might wonder whether you’re entitled to unemployment benefits if you get fired. This is a very common question we receive at our accounting firm in Palma, and the answer varies depending on your situation.

You cannot claim unemployment benefits while remaining self-employed

When an employee is also registered as self-employed, they cannot access the General Regime unemployment benefits if dismissed while maintaining their self-employed economic activity. This is because they’re not considered legally unemployed – an essential requirement to claim unemployment benefits as an employee.

What alternatives do you have?

If you’re fired from your salaried job but keep your self-employed status, you have two options:

• Cancel your self-employment registration and apply for employee unemployment benefits, provided you meet all requirements (minimum contribution period, legal unemployment status, etc.).
• Apply for self-employed unemployment benefits (cessation of activity), if you decide to stop your self-employed activity and can justify it according to legal requirements.

When can a self-employed person claim unemployment benefits

The cessation of activity benefit for self-employed workers is only granted in justified cases. Some qualifying circumstances include:

• Economic losses exceeding 10% in one year (except the first year).
• Court orders or administrative proceedings for debts exceeding 30% of turnover.
• Declaration of bankruptcy.
• Force majeure: such as during a pandemic, if income drops by at least 75%.
• Loss of administrative license due to circumstances beyond the self-employed worker’s control.
• Separation or divorce if registered as a collaborating family member.
• Gender violence situations.
• Since 2023: reduced working hours or ERTE contracts when having employees, or over-indebtedness for self-employed without employees, with a 75% income drop in the last two quarters.

Requirements to apply for cessation of activity

To claim unemployment as self-employed, you generally need to meet these requirements:

• Be registered with RETA (Special Scheme for Self-Employed Workers) and up-to-date with contributions.
• Have contributed for at least 12 months for cessation of activity within the last 24 months.
• Be in legal cessation status and commit to active job search or training.
• Not have reached retirement age, unless not entitled to contributory pension.
• Comply with labor regulations if you have employees.

Duration and payment amount

The benefit corresponds to 70% of the regulatory base and its duration depends on the contribution period. The minimum is 4 months and can extend up to 24 months if enough quarters have been contributed.

Conclusion

In summary, if you’re fired as an employee but continue as self-employed, you cannot claim General Regime unemployment benefits. To access financial support, you’ll need to either cancel your self-employment registration or meet the requirements for cessation of activity benefits.

If you have questions about your situation or need help managing these procedures, you can count on the team at Emprendix, your accounting firm in Palma, where we offer professional and personalized advice to help you make the best decision for your specific case.