«Anna is planning to leave our company. How should I handle social insurance obligations for the termination of an employee's job, and what other aspects do I need to consider?»
Some employees remain true to a company for half their lives, while others change jobs frequently. If your team is very loyal or you have not often had reason to lose staff, the termination procedure might seem a mystery to you. One important aspect is insurance protection, for which there are a few points to consider.
An employee's job termination often creates emotions on both sides. Meanwhile, it also has administrative consequences. This is particularly the case for insurance coverage.
Please bear in mind that, during the termination notice period, you are obligated as the employer to inform your employees of their insurance coverage status and options, no matter which side decided to terminate the job. Depending on the insurance in place, termination will have various consequences:
AHV/IV/EO (Pillar 1)
The employee need not be deregistered from social insurance.
Occupational pension (Pillar 2)
Deregister employees from the pension fund and inform the fund where to transfer their vested pension benefits. In some companies, employees may remain with their existing pension fund even after they leave their job. The company's rules of procedure will indicate any such regulation.
For one month after employees leave their job, their existing company pension fund continues to protect them against financial risks resulting from death and disability. However, they should no longer pay contributions to the pension fund during this time. Inform your employees that they have the option, after this month has passed, of opening a vested benefits account with a substitute occupational benefit institution (www.aeis.ch), bank or insurance company. This way, they can maintain their Pillar 2 benefits coverage. It is not possible to open a vested benefits account if the person starts a new job or registers with the employment office before one month has passed.
Does your employee receive family allowances? In this case, you must inform the family compensation office that the employee is leaving his or her job.
Employer statement (in the event of unemployment)
If the employee leaving your company becomes unemployed, the unemployment insurer may ask you to submit the "employer statement" form. In this form, you must provide information on the duration of the employment relationship, the reason for its termination, and the wages paid, among other things. The law requires you to complete this form.
Taking holiday leave during the termination notice period
Even during the termination notice period, holidays should be taken if possible, and not compensated by monetary payment. Your employee may therefore insist that any accrued holiday time be redeemed as non-working days even after termination is pronounced. As the employer, you may only refuse this request for reasons of an operational emergency. The employee may also request that holiday leave be redeemed in the form of payment if the termination notice period is short and there is a large remaining holiday entitlement.
What can Helsana do for you?
After the end of the employment relationship, the employee remains insured against accidents for 30 days. Employees who do not start a new job or register with the employment office within 30 days may take out extended insurance coverage for a maximum of 6 months. You must inform employees of this in writing. Employees who do not choose to take out extended insurance coverage after leaving the company must again take out private accident insurance. Make sure they are aware of this.
You can find all necessary information on extended insurance coverage in the "extended insurance coverage" information sheet (PDF, 90KB)
Daily sickness allowance insurance
If your company has taken out group daily sickness allowance insurance, employees leaving the company may generally withdraw from the group insurance and be admitted to individual daily sickness allowance insurance. This option is especially of interest for those taking up self-employment. No health declaration is necessary for this transfer.
Download the form for transfer to individual daily sickness allowance insurance (PDF, 80KB) and forward it in writing to the employee leaving the company.