The Impact of Ending Compensation for Non-Prescribed Periods Between Two Sick Leaves
Since September 2024, the French Health Insurance (Assurance Maladie) has modified the rules regarding compensation for sick leave. Periods not covered by a medical prescription between two sick leaves are no longer compensated, even if they do not exceed 48 hours. This change has a significant impact on companies and employees. Here is why.
An additional cost for companies
Until now, payroll software was configured to consider an interruption of less than 48 hours between two sick leaves (or a public holiday) as simple continuity.
For example, a sick leave from Monday to Friday followed by an extension starting the following Monday was treated as a single 12-day leave (5 days + 5 days + 2 days for the weekend junction).
With the new rule, this leave will be broken down into two distinct periods of 5 days each. The 2-day weekend junction will no longer be compensated by Health Insurance. However, the waiting period (carence) will only apply once.
Consequences:
- Companies will have to compensate for the difference for employees for whom they provide salary maintenance.
- Readjustment work on IJSS withholding within payroll software will be necessary to correctly apply this new rule.
- Management costs will increase due to the increased complexity of IJSS recovery procedures.
A financial impact for employees
For employees, this new regulation could lead to a reduction in remuneration in the event of prolonged sick leave. Indeed:
- A decrease in the number of compensated days: Breaking down the leaves artificially reduces their total duration. Using the example above, the total compensated period drops from 12 to 10 days, representing a loss of approximately 20%.
- A loss of income: Days not compensated by Health Insurance may not be fully covered by the employer, depending on collective bargaining agreements or internal company agreements.
Increased complexity for IJSS recovery
For HR departments and payroll managers, this change creates additional difficulties:
- Reviewing payroll system configurations: All software must be configured to no longer automatically include junction periods of less than 48 hours.
- Accurately analyzing IJSS entitlements: It becomes essential to clearly distinguish between compensable periods and those that are not.
- Anticipating disputes: The reduction in employee remuneration could lead to misunderstandings and conflicts.
How to prepare your company?
To anticipate these changes:
- Inform your HR and payroll teams of the new compensation rules.
- Update your software to reflect the end of compensation for non-prescribed periods.
- Communicate with your employees to explain the potential consequences on their remuneration.
- Train your teams in analyzing multiple leave situations to optimize IJSS recovery.
In conclusion, the end of compensation for non-prescribed periods between two sick leaves represents a real challenge for both companies and employees. To avoid financial losses and complex management, it is essential to adapt quickly to these new rules. By working proactively on understanding and applying these changes, it is possible to limit their impact and ensure optimal management of sick leaves.
On the other hand, tracking IJSS recovery and understanding compensable versus non-compensable days will become increasingly complex for payroll managers. Companies will certainly need to equip themselves with better tools or call upon experts in outsourced IJSS processing.
