Obligation to continue to pay wages in the event of illness
Employers are obliged to continue to pay their employees 100% of their wages in the event of illness for a certain period of time. According to the Swiss Code of Obligations OR, the minimum period is three weeks in the first year of employment, after which the salary must be paid for a reasonably longer period, depending on the length of the employment relationship and the special circumstances. According to court practice, the salary is based on the salary continuation scale of the respective canton.
The entitlement to continued salary payments is calculated per year of employment and begins anew with each year of employment. Several absences in the same year are added together. In the event of irregular wages, the calculation is based on a representative period of up to one year.
Sick Pay Insurance
Taking out sick pay insurance is optional for employers. Sick pay insurance protects employers from the lawful obligation of continued payment of wages and the domestic help from an early loss of salary.
The statutory obligation to continue to pay wages increases rapidly from the 2nd year of service onwards, so it is highly recommended to take out daily sickness benefits insurance in the 2nd year of service if this has not already been taken out.
If the employer has taken out optional sick pay insurance, he continues to pay at least 80% of the employee’s average salary during the waiting period (at quitt the waiting period equals 30 days). If the employee is unable to return to work within the waiting period, sick pay insurance will kick in. The employee will receive 80% of his or her salary for up to a maximum of 730 days.