HR France Update: Changes in Rules for the Portability of Insurance Benefits for Terminated Employees

HR France Update: Changes in Rules for the Portability of Insurance Benefits for Terminated Employees

In France, employees whose employment is terminated by the company, except for reasons of gross misconduct, benefit from the portability of the death/disability and health insurance plans to which they were entitled as employees of the company.

This entitlement is currently granted to persons who benefit from the government unemployment benefits and for a maximum period of 9 months.

The financing of this right is supported by the employer and by the terminated employee who pay the same contributions they paid as active employees for the benefit of these plans.

What will change?

As of June 2014, all employees whose employment is terminated by the company will benefit from the extension of their right to the health insurance benefits of their former employer to 12 months and as from June 2015, this extension will also apply to the death/disability plan (this latter plan is mandatory for all companies contrary to the health plan which is optional if not provided for by the branch collective bargaining agreement).

Moreover, as from June 2014 (health) and June 2015 (death/disability): these employees will no longer have to contribute to the financing of this portability system which will be supported by a mutualized financing by the employer and its active employees. Consequently, the regular contributions to the plans made by the employer and the active employees will include this financing and may consequently increase.

Should you have any questions, please do not hesitate to contact us.

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