Consequences of Prolonged Absences from the Workplace on Social Insurance

When an employee is absent from the workplace for a long time, whether for unpaid leave, childcare leave or because of an incapacity to work due to an illness or an accident, several aspects of social insurance must be taken into account. Here is a detailed overview of the implications for each type of absence.

Unpaid leave

Unpaid leave, often referred to as sabbatical, is generally taken at the request of the employee. It is crucial to establish a written agreement between the employer and the employee prior to the start of the leave, specifying the duration and insurance implications.

Points to remember:

• AVS (Old-Age and Survivors Insurance): Contribution gaps may occur, requiring contributions as a person without gainful employment to avoid a lower pension.
• AC (Unemployment Insurance): The right to unemployment benefits may be lost if the absence without contributions exceeds twelve months in the last two years.
• PP (Occupational Benefits): The coverage for death or disability ends one month after the end of the right to salary. It is essential to check the specific provisions with the insurer.
• LAA (Accident Insurance): Additional coverage is provided for 31 days. Beyond that, individual insurance or coverage via private health insurance is necessary.
• IJM (Daily Indemnity in case of Illness): The provisions vary according to the insurer, requiring prior consultation.
• AfAM (Family Allowances): The right is maintained for three months if the annual income is at least CHF 7350.— (2023).
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Additional implications:

It is important to note that during unpaid leave, the employee does not receive a salary, which may affect their ability to contribute voluntarily to social insurance. In addition, the employee must ensure that adequate health insurance coverage is maintained to avoid any interruption of care.

Childcare Welcome Leave

Since July 1, 2021, parents can benefit from 14 weeks of paid leave to care for a child who is seriously ill or has an accident. This leave can be taken flexibly and is subject to contributions.

Points to remember:

• AVS and AC: The obligation to contribute remains, with employer contributions paid by the compensation fund.
• PP: Insurance coverage is maintained, but the employee may reduce their coordinated salary, resulting in lower savings contributions.
• LAA: Coverage is mandatory.
• IJM: Insurer consultation required to verify the insurance obligation.
• AfAM and AI (Disability Insurance): The benefits continue to be paid, and the obligation to contribute remains.
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Additional details:

This type of leave allows parents to focus on caring for their child without fear of an immediate loss of income. However, it is crucial to fully understand the terms of this leave, especially with regard to the flexibility of taking and coordination with the employer.

Long-term incapacity for work

In the event of prolonged incapacity for work due to illness or accident, the implications for social insurance depend on the transmission of insurance benefits by the employer.

Points to remember:

• AVS: Contribution gaps may occur, requiring contributions as a non-profit-making person to avoid a lower pension.
• AC: The right to unemployment benefits can be compromised if the absence of contributions exceeds twelve months. The contribution period is maintained as long as the employment contract is in force.
• PP: From the fourth month of disability, the premiums are exempt, with the contributions paid by the insurer.
• LAA: No obligation to contribute, with daily benefits paid until full recovery, pension start or death.
• IJM: The duration of the right to daily benefit is regulated, generally from 720 to 730 days depending on the type of insurance.
• AfAM: Maintenance of benefits for the current month and the following three months, with possible resumption if the insurable earnings reach CHF 612 per month (2023).
• AI: Early detection is recommended for a disability of more than 30 days or for repeated absences.
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Additional Considerations:‍

It is essential for employees to understand the processes for claiming and managing benefits in the event of a prolonged disability. Regular communication with the employer and insurers can help ensure a smooth transition and avoid coverage interruptions.

Strategies to Minimize Negative Impacts

In order to minimize the negative impacts of prolonged absences on social insurance, several strategies can be put in place:

• Financial planning: Establishing an emergency fund to cover periods of no income.
• Regular consultation: Maintain an open dialogue with insurers to understand the options available.
• Training and Information: Employers should offer information sessions on the implications of extended absences.
• Written agreements: Always formalize leave agreements in writing to avoid misunderstandings.

Conclusion

Each type of prolonged absence from the workplace has specific consequences for the various social insurances. It is essential for employers and employees to fully understand these implications and to take the necessary steps to avoid coverage gaps or loss of rights. Regular consultation with insurers and the establishment of written agreements can help manage these situations effectively.

By following this advice and staying informed of legislative changes, employers and employees can better navigate the complexities of social insurance in the event of extended absences.