Billy Timmins (Wicklow, Fine Gael)
Link to this: Individually | In context

Question 782: To ask the Minister for Social and Family Affairs the position in regard to a person who has decided to leave work to start up their own business; and if he will make a statement on the matter. [40225/05]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

Unemployment benefit provides for periods of involuntary unemployment and is not payable in respect of any day during which a person is engaged in insurable employment or self-employment. In certain circumstances, however, a self-employed person may be entitled to claim unemployment benefit for part of a week. For example, if engaged under a contract for service, that is, self-employed, for up to three days per week, unemployment benefit may be payable for the remainder of the week provided that all qualifying conditions are satisfied.

A person may be disqualified from receiving unemployment benefit for up to nine weeks from the date of leaving employment if he or she has left the employment voluntarily and without just cause. To qualify for payment, a person must be available for and genuinely seeking full-time work in respect of each declared day of unemployment. This means being prepared to accept any offers of suitable full-time employment immediately, having regard to the person's skills, qualifications, experience, and duration of unemployment. As there is an onus on the individual to show that this condition is satisfied on an ongoing basis, he or she would not qualify for payment of unemployment benefit while setting up a business or engaging in self-employment.

Where a person is not eligible for unemployment benefit, arrangements are in place whereby a self-employed person, whose overall income falls below the rate of payment appropriate to his or her family size, can qualify for an unemployment assistance payment, which is means-tested. In assessing means, account is taken of net income that the person may reasonably expect to receive in the following year, after all expenses necessarily incurred are deducted.