Trade union for freelancers - Is it necessary?

What is a trade union?

First, let's look at what a trade union actually is. A trade union is basically a large community that you pay to be a member of on a regular basis.

The money paid to the union is used to fight for your interests as an employee, such as wages, working conditions or work-related injuries, with some unions also offering personal advice or help with career planning.

There is a general perception that unions are better suited to larger companies and public sector employees.

We often see unions as the sword and shield of employees.

Unions fight and protect employees' collective agreements against employers' demands for poor working hours and working conditions - poor pay and poor working environment.

So why should you as a self-employed, freelancer or sole trader prioritize time and money on a trade union that is used to fight for employees, which is not you?

This can be a good idea because there is another side to the story; unions are for everyone!

Trade unions are traditionally built on a relic from a time when the labor market looked completely different.

Times are changing and today we are seeing a huge increase in the number of people working online, from home and especially freelance.

Unions have therefore moved with the times and adapted to the labor market we have today.

So let's start by demystifying the often misconception that unions ARE also for the self-employed.

If you're more interested in the unions right now, you can find a lot more information about unions for the self-employed here.

What is the difference between an unemployment fund and a trade union for the self-employed?

Unemployment fund and trade union - do you really need to be a member of both? And what's the difference?

In short, the unemployment insurance fund provides financial security, while the trade union can help you as a self-employed person with advice and a number of other things, which we'll get into later in this article.

The explanation lies in the name; A-kasse, which is an abbreviation for unemployment fund, ensures the employee an income in case of unemployment. 

Roughly speaking, the unemployment insurance fund helps you when you're out of work, while the union helps you while you're in work.

You don't necessarily have to have a trade union and unemployment fund in the same place, and if you don't want to be a member of both or either, it's also entirely up to you to choose.

You can read more about the difference between unemployment funds and trade unions right here.

How to find the 'right' trade union for the self-employed?

The boring answer is that the best thing to do is to do a little research on the different unions.

There are countless trade associations, some of which are industry-specific, while others are more general and offer a wide range of services in different price ranges.

Which trade union is right for you is therefore very individual.

So even though it's a bit of a broad answer; look through the different unions and find the one that's right for you and your needs!

When do you need a union as a self-employed freelancer?

All freelancers and self-employed people who need sparring, legal advice, a larger network or even training will benefit from being a member of a trade union.

But are there any disadvantages to being a member of a trade union for the self-employed?

Of course, there is a financial cost associated with a trade union that cannot be avoided.

In the context of the invaluable knowledge and support that a trade union can provide, it's often worth it.

How much does a trade union membership for self-employed people cost?

The cost of a union can vary, and it's best to contact the union directly for the most up-to-date information on union membership for the self-employed. 

However, it's worth noting that many unions for the self-employed offer discounts on membership, as your working conditions are different to those of the average employee.

What can a trade union help the self-employed with?

There's a big difference between what a trade union can help an employee and a self-employed freelancer with.

Different tasks and working conditions require different offers and solutions from the union.

As a sole trader, a trade union for the self-employed can provide you with input and help, which can be an advantage as freelancers often work alone and may lack sparring partners in stressful situations.

This is where a trade union can be a helping hand and give you the opportunity to make use of sparring and advice for your business.

Below you'll find a list of some of the areas that a trade union can offer to self-employed, freelancers and sole traders:

• Tax and VAT rules:

As you probably already know, when it comes to tax and VAT, it can be difficult to keep track of everything. "What can I deduct?", "how much will I actually get paid next month?" etc.

This is where the union can be of great help and can guide you through the 'tax' jungle. If you can't wait to get an answer from a union, you might find the knowledge you need here.

• Pension:

We all dream of living our old age on a vacation island surrounded by palm trees and sandy beaches, but that dream is quickly shattered if we don't have the financial means to sweeten the deal later in life.

A trade union for the self-employed can help guide you on the right path towards your dream palm tree life or simply a secure retirement.

If you want to make sure you have enough money in your account at that time, you can read more about pensions here.

• Business strategies and development:

If you're stuck and need help pulling yourself out of the mud, a self-employed union can be both your rope and your tractor - your personal lifeline!

The union can be your permanent or loose sparring partner and can help with both marketing and budget.

All kinds of tasks can benefit from an extra set of eyes.

• Jura:

An important part of running a business is, of course, the legal side.

And as important as it is, it can be complicated.

Fortunately, unions have skilled lawyers on staff who can help you navigate the legislation.

For example, creating and reviewing contracts, legal assistance or corporate and HR law.

• Courses and networking:

Trade unions are often large networks with access to great resources that their members can of course benefit from.

One of these benefits is good and close relationships and connections that you can seek out and utilize to strengthen your or your company's network.

In addition, they often offer various courses that you can sign up for to develop your skills or acquire a new tool for your toolbox.

You can get inspiration for different courses here.

• Overtime:

Many self-employed people work a lot; that is, many self-employed people work TOO much.

The self-employed union can help you find ways to separate your workday and leisure time, among other things.

If you find it hard to put your work phone away and check emails under the table at dinnertime, the union can help you find a good balance that focuses on more than just work.

Trade union for the self-employed - should, shouldn't?

After all, a trade union as a self-employed person is nice to havebut not need to have.

Whether you can benefit from joining a trade union is entirely up to you, but regardless, it's a good idea to familiarize yourself with the topic and do some research on the different unions so you at least know what you're saying no to.

You could say that a trade union is only beneficial to join if you actually use it and get value for your money. 

On the other hand, you can also quickly find yourself in a situation where you need the support of a trade union, so it's definitely worth considering.