Employees employed under an employment contract are covered by sickness insurance. This means that if the employee goes on sick leave, the employer pays sick pay (provided they meet the waiting period requirement).
The waiting period is the number of sickness insurance days that must elapse before the insured person (employee) is entitled to sickness benefits. It is 30 days (for those with mandatory insurance) and 90 days (for those with voluntary insurance).
Under current regulations, the employer pays the employee's salary for the 33 days of illness-related incapacity. However, if the employee remains incapacitated, sickness benefits are paid from the Social Insurance Institution (ZUS) Fund from the 34th day of continuous incapacity. Therefore, the employer covers the salary for the 33rd day of absence, and the Social Insurance Institution (ZUS) covers the salary from the 34th day of absence.
In the case of employees over 50 years of age, the situation is different - employers pay sick pay for the first 14 days, while ZUS takes over this responsibility from the 15th day, paying sickness benefits.
The fact that ZUS currently pays sickness benefits from the 34th day of incapacity means that the employer is responsible for paying the employee's salary for the 33rd day of incapacity. This often represents a significant cost to the employer.
For a small business owner with a small number of employees (up to 20), even a single employee being unable to work can cause significant problems. The business owner is obligated to pay the employee's salary for the 33 days of absence. This is an exception to the rule that remuneration is earned for work performed. Additionally, the employee's assigned duties must be performed by another employee, who must be compensated for any overtime hours.
Changes are coming…
As we know, every change, especially regulatory changes, has its advantages and disadvantages. According to the new government's announcements, regulations are expected to come into force in 2024 that will regulate the payment of employee remuneration due to sickness absence in a different manner. Legislators want the Social Insurance Institution (ZUS) to pay remuneration from the first day of the employee's absence.
Under the above change, employers will be relieved of the burden of bearing the costs of an employee's absence due to illness. This change can be viewed as positive. It will certainly help small and medium-sized businesses struggling with numerous financial burdens.
At first glance, this sounds quite optimistic, but the devil is in the details. It's worth noting that the Social Insurance Institution (ZUS) has 30 days to pay benefits from its own fund. This means that employees may receive their salaries much later than before. This can create numerous liquidity problems, especially for employees with outstanding financial obligations (e.g., loans).
The above announcements will likely apply to small businesses, meaning those with fewer than 20 employees. The Social Insurance Fund (ZUS), i.e., the state budget, will cover employee absences. Currently, there are no specific plans or provisions, and therefore no rules for paying wages during an employee's illness. This is a rather revolutionary and multifaceted change, and specific information regarding the method and form of wage payment should be available soon. Therefore, it's worth keeping an eye on upcoming regulatory changes.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of February 29, 2024
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