Navigating and implementing company insurance benefits and policies is important for firms to maintain operational efficiency. However, regulatory requirements for such policies can be both intricate and regionally specific. One such policy is a sickness benefit insurance policy, which offers significant protection for employers relating to employee sick leave.
Understanding how this insurance benefit works, the responsibilities it imposes on employers, and the options when no such policy is in place is essential. Here we outline the key components and decisions surrounding the sickness benefit insurance in Switzerland specifically, ensuring businesses are well-equipped to manage the financial and legal implications of employee sick leave.
Sickness and Salary
In Switzerland, it is possible for companies to put in place a sickness benefit insurance policy that would reimburse company salaries paid to employees that are on sick leave. This insurance policy is not mandatory.
If an employer has a sickness benefit insurance:
Most employers have a sickness benefit insurance policy in place. If such a policy is in place, the employer must pay the employee’s full salary during the waiting period, which is typically around 30 days. After this period, the insurance coverage begins and the salary continuation is reduced to 80%, which corresponds to the daily sickness allowances provided by the insurance.
Employees should not work while on sick leave, as the insurance company may seek reimbursement.
If an employer does not have sickness benefit insurance:
If there is no sickness benefit insurance in place, the employer must continue to pay 100% of the employee’s salary according to different regional scales, such as Zürcher, Berner, and Basler. The duration of salary continuation depends on the employee’s years of service. For example, under the Zürcher scale, the employer must pay 100% of the salary for three weeks starting from the first day of sickness. After this period, the employer is no longer obligated to pay the salary. However, other agreements favouring the employee can be included in the employment contract.
What to do next
Ensuring compliance with Swiss employment obligations requires thoughtful planning and informed decision-making.
Centralis Switzerland GmbH can, together with our experienced professional partners, assist with implementing the sickness benefit insurance policy. For more information and to find out how we can support your firm, please contact Marc Buehlmann from our specialist Switzerland team.