Self-employment in the hotel/catering industry despite long-term losses

Facts

The appellant A. holds a 50% stake in the general partnership C., which operates a hotel with an associated restaurant as well as an additional restaurant D. Since 2005, the general partnership has incurred losses. At the end of October 2013, the hotel with the restaurant was temporarily closed, but the restaurant D. remained open.

The Compensation Fund of the Canton of Fribourg retrospectively classified A. as non-employed from 2008 onwards and issued the corresponding contributions. A. filed a complaint against these rulings.

Considerations

The Federal Court overturned the decision of the lower instance and qualified A. as self-employed for the years 2008 to 2014. Although A. generated losses during this period, the prerequisites for self-employment are met.

The decisive factor is that A. and her husband made significant investments in the millions to make the hotel business profitable in the long term. Furthermore, the general partnership employed around 70 employees annually and reported high wage sums. These circumstances speak for an intention to earn a living…