Salary continuation (employer's supplementary sick pay)
The employer's legal duty to top up the social security daily allowances of an employee on sick leave, which protection policies often fund or extend.
When on sick leave due to illness or accident, an employee receives social security daily allowances equal to half their basic daily wage, after a three-day waiting period. The French Labor Code requires the employer to top up these allowances for employees with at least one year of service: 90% of gross pay for a first period, then two thirds for a second, whose length grows with seniority, after a seven-day waiting period. Collective agreements often improve on this base, by shortening the waiting period or extending durations. Many employers insure this duty through a salary continuation policy that reimburses them, then rely on an incapacity cover that takes over when the legal duty ends. When the employer uses subrogation, it pays the salary and collects the allowances directly in place of the employee.
Originating in the monthly pay act of January 19, 1978, the duty was extended to employees with one year of service, instead of three previously, by the labor market modernization act of June 25, 2008.
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