What do you need to be aware of when applying for sabbatical leave in terms of dealing with the pension fund, AVS and insurance?
It all depends: if your employee is paid during his/her leave, then 1st and 2nd pillar contributions are maintained.
If not, be sure to inform your employee of the following, as the consequences can be serious:
1st PILLAR (AVS/AI) :
If the employee’s main residence remains in Switzerland, the obligation to contribute to the 1st pillar (AVS/AI) continues. Abroad, the obligation to contribute ceases, but it is sometimes possible to make voluntary contributions to the AVS/AI to avoid pension gaps.
2nd PILLAR (BVG):
Unpaid leave can leave a gap in your pension fund. However, this can be avoided by making voluntary 2nd pillar contributions. Contributions can be made after the fact, as “buy-backs”.
3rd PILLAR (FISCA account/private pension provision) :
restrictions apply in the event of a leave of absence of one calendar year or more.
ACCIDENT INSURANCE :
This will no longer be valid 31 days after entitlement to at least half salary ceases. In the event of a prolonged period without pay, you may wish to advise the employee to take out “conventional” insurance, which extends the company’s accident insurance for up to six months.
SICKNESS BENEFIT INSURANCE :
You can also recommend that they extend their daily sickness benefit insurance accordingly.