Employee leaves company – How do I have to inform the employee about his or her insurance cover?
Employers are obligated by law to inform employees when they leave the company about the continuation of their social insurances: Art. 331 Para. 4 of the Swiss Code of Obligations (OR) "The employer must provide the employee with the necessary information about the legal claims which the employee has against a pension facility or an insurance institution."
According to very recent judicial practice, this information obligation is not limited merely to classical provision in the area of retirement, death or invalidity but also to accident, sickness per diem insurances and other forms of provision. In a ruling by the Federal Supreme Court in 2010, an employer was obligated to pay full compensation because it had not pointed it out to its employee that the latter could continue his sickness per diem insurance via an individual per diem insurance after he had left the company (4A_186/2010). This means that the employer, in the worst case, can be confronted with a claim for compensation amounting to 80% of two annual salaries. It is a fact that employees are increasingly better informed and increasing less inhibited about enforcing their rights via the courts.
We recommend (at least in the case of permanent contracts): Before he or she leaves the company, the employee should be informed in writing about all effects under insurance law of the termination of the employment contract. For documentation reasons, the employee should confirm with his or her signature that he or she has taken note of this. The template on the following two pages can be used for this. The documents mentioned in point 5 can be obtained directly from the respective insurer (we will be pleased to help you further if you have any problems).
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Senior Mandate Manager & member of the Executive