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Sometimes employers ask us about pensions and insurance for their employees. The answers often vary depending on what collective agreement they have or whether the company does not have a collective agreement linked to the business and uses other insurance solutions instead. Here we run through some things to keep in mind.
If a company is bound by a collective agreement, as an employer you must take out insurance policies for your employees. If a company does not have a collective agreement, it does not have to take out corresponding insurance. In some cases, however, a company without a collective agreement may be required to take out equivalent collectively agreed insurance depending on the industry in which it operates, such as the construction industry.
With regard to private companies, insurance policies may differ for manual and non-manual workers. This is partly due to the insurer but also the content of the insurance. It is the employer who must apply for insurance from the relevant insurance companies who manage the insurance policies.
If we look at private companies in general, many of them have the following policies depending on whether collective agreements apply within the company, but that is not to say that this is the case in your particular workplace.
A contractual pension is an occupational pension that is primarily agreed through a collective agreement between employer and employee representatives. As there are many different collective agreements, there are also a number of variants when it comes to contractual pensions. For example, there is an ITP pension for non-manual workers and SAF-LO pensions for manual workers in the private sector. Within SAF-LO, there are some additions that enforce the agreement with additional depositions. This looks a bit different within the different SAF-LO branches. There are also other solutions for those working in municipal, regional and national government. You can offer your employees an occupational pension without being bound by a collective agreement. These solutions may look slightly different, depending on the provider used.
Employment transition insurance
In the event that an employee is made redundant, they may be able to benefit from employment transition insurance. In brief, employment transition insurance aims to help people who are made redundant to find work more quickly. All companies with collective agreements have a right to this support and can be offered as severance pay, but also for rehabilitation, education or aid to start a business. The insurance looks a bit different for manual workers and non-manual workers.
Manual workers who go via the TSL transition insurance (Trygghetsfonden). Non-manual workers in the private sector, usually go to TRR (Trygghetsrådet).
For companies without collective agreement in their organisation, there is a possibility to aid with a similiar transition insurance to help the employee go back to work. Many of the bodies that help via collectively agreed insurance are also able to help companies without a collective agreement.
Occupational injury insurance (TFA)
Occupational injury insurance is more comprehensive than social insurance and applies to all workers, irrespective of their occupational category. Not only is the employee insured during their working hours, but also on their way to and from work. The insurance may also cover employees who fall sick as a result of their work or who have an illness that is made worse due to their work. If the employee loses income due to injury, they may receive compensation of up to 100% of their income and the insurance may provide compensation for costs incurred in connection with the injury.
The exception is an traffic accident. In those cases, it's always the traffic insurance that's applied.
Group sickness insurance (AGS) and group life insurance (TGL)
AGS applies to workers within SAF-LO and is an insurance that enforces the reimbursement from Försäkringskassan in the event of sickness, from day 15 at the earliest. If an employee is covered by SAF-LO, the employee himself must request about AGS to Fora. Non-manual workers are not covered by AGS - they have an insurance managed by Collectum and is reported by the employer.
TGL is a life insurance in all collective agreements. It mostly looks the same for all apart from minor differences. The maximum amount is the same for all. It's 6 price base amount that becomes less as the age increases. Although it's not standard, the reimbursement can be offered to the partner. It's always best to inform the employees to write an agreement of beneficiaries for their TGL. In that way, they can be sure that the payment goes to the ones they want. It doesn't have to be a family member.
Companies without collective agreements
Of course, insurance policies can be taken out without collective agreements, and this includes occupational pension insurance. Many companies use the framework for ITP, for example, when they take out insurance and make provisions for other, similar pension solutions. As it is voluntary for companies without collective agreements to take out insurance, unfortunately around half of these companies have no occupational pensions.
How Azets can help you
At Azets, we have extensive experience of insurance policies, both within and outside of collective agreements. If you as an employer have questions or concerns about this or would like to hear about common solutions in your particular industry, please don’t hesitate to get in touch.
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