Every month, when filing their declaration of their employees' salaries with the Joint Social Security Centre (Centre commun de la sécurité sociale - CCSS), employers must also file a declaration of their employees' 'incapacity for work' periods.
There are several types of incapacity for work:
The declaration of 'incapacity for work' periods must be filed by the employer.
Employers must declare their employees' 'incapacity for work' periods if:
No later than 10 days after the end of every month, the employer must file a monthly declaration of all the 'incapacity for work' periods of each employee, along with their declaration of their employee's salaries.
The employer may file the declaration with the CCSS:
Filing the 'incapacity for work' and salary declarations automatically triggers the reimbursement of any payments made by the employer during the period of continuation of pay.
For each uninterrupted period of incapacity for work (i.e. not interrupted by a return to work), the employer must specify:
If a period of incapacity for work lasts several months, each month must be included in the monthly declaration.
As of the 1st of January 2020, employers must report the following in their monthly declaration of incapacity for work:
However, the number of hours claimed may not exceed the number of working hours declared.
The hours claimed are the hours of absence of an employee, due to incapacity for work, for which the employer has ensured the continuation of wages.
Hours declared in the declaration of salaries include:
Therefore, overtime that was scheduled but not worked should not be declared.
The employers' mutual insurance scheme (Mutualité des employeurs - MDE) will not refund salaries advanced by the employer unless employees' periods of incapacity for work are declared.
Employers must pay their employees' compensation until the end of the calendar month in which the 77th day of incapacity for work falls, within a reference period of 18 consecutive calendar months, which equates to a period of 13 week on average.
Refunds of benefits are made by the CCSS on behalf of the employers' mutual insurance scheme by crediting the monthly account statement with the amount in question.
To be able to receive an automatic refund for a specific month, the employer must file the following with the CCSS:
A breakdown of the refunds paid for each employee is sent to the employer or their representative:
Refunds will be blocked automatically if inconsistencies are found in the employer's declarations. For example, a declaration would be deemed inconsistent if a declaration of incapacity for work lists more hours of leave than working hours reported in the declaration of salaries.
The refund will remain blocked until the employer submits the schedule of working hours they received from the CCSS:
If the employee does not fulfil their obligation to submit their medical certificate to the National Health Fund (Caisse nationale de santé - CNS), the CCSS will request the employer to provide the original of the employee's medical certificate.
Refunds for periods of incapacity for work are made on a monthly basis by offsetting the amount against the cumulated amount of social security contributions claimed by the Joint Social Security Centre (CCSS). If the refund exceeds the amount of contributions, the excess amount is put in reserve, unless the employer specifically requests that the refund be made.
The employer will only be reimbursed if:
The reference base used to calculate refunds is the gross salary plus the employer's share of contributions in respect of illness, pension and accident insurance.
The employer will be reimbursed 80 % of the reference base for standard periods of incapacity for work (due to illness or a work accident).
The employer will be reimbursed 100 % of the reference base for periods of incapacity for work for the following reasons:
Calculation of the amount to be reimbursed:
R = (A x nH) / TH x 0.8 for periods reimbursed at 80 %
R = (A x nH) / TH for periods reimbursed at 100 %
R = Reimbursement
A = Reference base
nH = number of hours of incapacity for work, validated by the CNS
TH = Total number of hours that should have been worked during the month