A self-employed person is in business on their own account. They are, by definition, not employees. This presents a number of problems.
If their business collapses they will be given little or nothing by the State to bide them by in unemployment.

No redundancy
A self-employed person will not be entitled to statutory redundancy (two weeks pay for every year of service up to a maximum €600 a week). Unless the self-employed person has formed a company and paid themselves a salary, and deducted PAYE and PRSI (which means they will be an employee) there will be no redundancy.

Self-employed pay PRSI
A self-employed person pays PRSI (pay related social insurance) at a rate of 3%, on all income. This is Class A.

A employee – Class A – pays 4% up to €75,036 (you pay nothing on the first €127 a week). The employer pays an additional 10.75%.

No social welfare
In general, a self-employed person who business has collapsed has no entitlements.  They are not covered for benefits such as illness and Jobseeker’s Benefit. The Depart of Social Protection says this is similar to other European social protection systems. All they do get is maternity benefit and contributory pension.

Means tested
A self-employed person with no income may qualify for Jobseeker’s Allowance – this is means tested. The means is taken as the net profits they will earn in the next year. Earnings in the last year are looked at, but it is not assumed they will get that in the coming year. You will need proof of earnings and audited accounts for two years. 

If a self-employed person “passes” the means test, they can continue in their business and do not have to sign off the Live Register for any days spent in this way.

Stress and suicide
Up to 29 suicides are attributed to business failures, with many of those thought to related to the self-employed. Those whose business collapses are often faced with huge debts, a loss of reputation, a hit to their ego, and increased stress.

Fostering entrepreneurs
For a country that claims it is aiming to foster entrepreneurial activity, it is not going to encourage people to take risks and set up on their own.

Short-term mortgage support
A short-term mortgage support, paid by Community Welfare Officers, and known as mortgage interest supplement may be available to the self-employed. The money is only to pay the interest on the mortgage. There is a means test, and the mortgage must not have been too expensive when taken out, in the view of the community welfare officer. You or your spouse must not work for more than 29 hours a week.