Many owners of limited liability companies and corporations have been paying unemployment insurance contributions for years – and yet, until now, had no entitlement to unemployment benefits. The approved unemployment insurance reform could change this for the first time. Under certain conditions, entrepreneurs will gain access to unemployment benefits in the future.
What previously applied
Owners of limited liability companies and corporations who are employed by their own company are generally considered to have employer-like status. This status excludes them from receiving unemployment benefits – regardless of how long and how much they have paid into unemployment insurance even if they have paid regular ALV contributions for years.
This doesn't just affect sole shareholders. Co-founders, minority shareholders, and operational managing directors without a controlling position are often also affected.
What the reform changes
The reform approved by parliament, for the first time, creates access to unemployment insurance for entrepreneurs, founders, and minority shareholders under certain conditions.
Whether you are actually eligible depends on several conditions. Key factors include your shareholding, your voting rights, and your role in the company.
Case 1: Company Liquidation
Eligibility may arise if:
- The person was employed by the company for at least 2 years
- They leave the company
- A waiting period of 20 days is observed
Case 2: Company continues to exist
Stricter conditions apply here. Eligibility is possible if:
- At least 2 years of employment in the company
- Shareholding below 50%
- Less than 33% of voting rights
- No board position (e.g., no seat on the board of directors) and no comparable control
- 20-day waiting period
Who is this relevant for?
The reform primarily helps:
- Startup founders with minority stakes who were operationally active but did not have a controlling position
- Co-founders who do not hold the majority
- Entrepreneurs who have lost their control rights after restructurings
- Individuals who have relinquished their operational and legal control over the company
Classic sole shareholders with a 100% stake generally still have no claim. For them, nothing changes for now.
When does the reform come into effect?
The ALV reform has been passed by Parliament. However, before it comes into effect, the referendum period and the Federal Council's decision must still be awaited.
- Final vote in Parliament
- 100-day referendum period
- Determination of the effective date by the Federal Council
- Any necessary ordinance adjustments
Realistic assessment: January 1, 2027 at the earliest, possibly even mid-2027. Until then, current law applies.
What this means for your company structure
The reform is more than just a social security law adjustment. It has direct implications for how ownership structures should be evaluated.
When establishing new companies, planning successions, or conducting management buy-outs, shareholdings, voting rights, and board positions should also be reviewed in light of the ALV in the future. A stake just above or below 50% can mean the difference between eligibility and no eligibility – you should consciously consider this during structuring.
This is the kind of detail that easily gets overlooked in day-to-day operations. Until it becomes relevant at the crucial moment.
Do you have questions about your specific situation?
Whether you're just starting a company, restructuring a shareholding, or simply want to know how the ALV reform affects your situation – we'll look at it together with you.
