Companies in France that depend on the Syntec Collective
Bargaining Agreement (CBA) must now apply the new medical insurance
rules published on 24 December 2015.
This requirement applies to software, technological,
engineering, and consulting companies in the service
industry. From a payroll point of view, what matters most is
the CBA mentioned on the employment agreement and payslips. You can
find out if your company is included in the Syntec CBA by looking
at these documents.
What do I do if my company doesn't have medical insurance
Since 1 January 2016 all companies have been required to have a
medical plan. Failure to provide medical insurance to staff can
result in disputes. Your payroll administrator should be contacted
asap if this plan is not already in place.
What do I do if my company already has medical insurance?
It's imperative to assess the HR compliance and the tax
compliance of your existing plan. Your existing plan needs to be
adapted before 23 March 2016. In order to be regarded as a
non-taxable benefit, there are several criteria:
1/National law compliance
The contract must comply with both new legal national
requirements of "Contrat responsable" (legal cap on
benefits) and "Panier de soins" (legal basic benefits)
effective 1 January 2016. You should contact your insurer or broker
to ask about these new compliance statuses. Where the contract is
not compliant, it will need to be amended.
2/Syntec CBA compliance
The contract must be fully compliant with the new Syntec CBA
requirements (published 24 December 2015). The compliance criteria
a: the benefits
If the benefits are lower than the new Syntec requirements, it
is not compliant. You will need to ask your insurer to upgrade your
contract to the new Syntec requirements. If the benefits are
higher than the new Syntec requirements, it is ok, but you will
need to issue a Decision Unilatérale Document, signed by the
employer and the employee in order to make it tax compliant.
b: the insurance premium rates
If the insurance premiums are lower than the new Syntec
requirements, it is not compliant. You will need to ask your
broker/insurer to upgrade your contract up to the new Syntec
If the premiums are higher than the new Syntec requirements, it
is ok, but you will need to issue a Decision Unilatérale
Document, signed by the employer and the employee in order to make
it tax compliant.
c: the insurance premium split
If the employer share of the premium is higher than the legal
50%, it is ok, but you will need to issue a Decision
d: the enrolment rules
Your enrolment rules will need to strictly comply with the new
Syntec enrolment rules. You are not allowed to exempt an employee
or an employee's children for a reason which is not authorised
by the Syntec rules. If your enrolment rules are different from the
new Syntec enrolment rules, your entire plan will be taxable.
Failure to comply with the Syntec enrolment rules will cause the
entire plan to be treated as a taxable benefit, and can also see
you risk prosecution in the Labour court in an instance of
litigation by an employee.
Your insurer or broker should be your primary point of contact for setting up a plan, or upgrading an existing plan and providing a “decision unilatérale” template if necessary.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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