Employees posted abroad: maintenance of accident insurance coverage, supplementary accident insurance, loss of earnings due to illness and occupational pension plans (conditions and method)

Introduction

Sending an employee abroad is not a simple “travel”. For an SME, it is a governance issue: who assumes which risk, which coverages remain valid, what evidence will be required in the event of an accident or sick leave, and at what point an extension or a formal decision becomes necessary.

In this article, you will know what to maintain (LAA, LAA supplementary, loss of earnings due to illness, LPP), what to request (A1/CoC, certificates), what to document, and how to organize simple monitoring, without blind spots.

1) Clarify the status: travel, mission, secondment, expatriation

1.1 Why does “pilot status” overshadow everything else?

The rules for maintaining social security and accident insurance coverage are not determined by the country of destination, but rather by the employment relationship and the nature of the stay abroad (temporary assignment, secondment, multiple employment, etc.). The Federal Social Insurance Office (FSIO/BSV) reiterates the principle: an employee temporarily sent abroad can remain subject to the social security system of their country of origin if certain conditions are met.

1.2 The document that changes the discussion: A1 / CoC

For EU/EFTA countries, and depending on the circumstances, the A1 certificate (or Certificate of Coverage, CoC, depending on the applicable framework) serves to prove to foreign authorities that Swiss social security legislation continues to apply. The Swiss Compensation Office (EAK) explicitly describes this evidentiary function and recommends requesting the certificates in a timely manner, ideally via the FSIO's ALPS portal.

1.3 Minimal internal decision-making (governance)

Before going into the details, make a simple internal decision (HR/CFO/Management):

• Expected duration and country

• Activity performed and exposure to risks (fieldwork, construction site, driving, laboratory, etc.)

• Maintenance of the Swiss contract (yes/no) and remuneration (in Switzerland, abroad, mixed)

• Coverage objective: strict continuity or local “equivalent” coverage

This decision serves as the anchor point for the evidence file.

2) Accidents under the Accident Insurance Act abroad: continuity, limitations, evidence

2.1 The principle: LAA can provide coverage abroad, but not “without conditions”

In practical SME terms, the question is not “does the LAA cover abroad?”, but “are we still within the scope of the Swiss LAA for this employee during this period?”.

An important operational point is recalled in the official documentation of the OFAS (basic “red” form): persons who carry out an activity abroad on behalf of an employer in Switzerland remain affiliated with Swiss accident insurance for a period of two years; on request, this period can be extended to a maximum of six years by the competent accident insurer.

SUVA also publishes a practical document on temporary activity abroad which mentions this framework (limit and extension).

This point is a trigger for steering: as soon as the mission approaches the limit, you switch from “administrative management” to “decision management”.

2.2 Work-related vs. non-work-related accidents: verifying actual insurability

SUVA reminds the public, in a general information leaflet, that to be covered (particularly for non-professional accidents), you must be insured at the time of the accident; and also specifies the condition of employment (at least 8 hours/week) for non-professional accidents.

Although this document is primarily for travel purposes, it is useful as an HR check: a change in activity rate, a suspension of salary, or a departure from the workforce can have consequences on the “actual” coverage at time T.

2.3 What the LAA does not resolve on its own

The LAA (Swiss Accident Insurance Act) covers accidents according to the Swiss framework. It does not guarantee:

• local “practicality” (access to a network, advance payment of expenses, repatriation),

• nor the adequacy to the country's medical costs,

• nor local evidentiary requirements.

This is where supplementary LAA and/or assistance guarantees come into play (without automaticity, because these are contracts).

3) LAA supplementary insurance: what is decided (and read) in the contract

3.1 A contractual logic, not an “automatic” logic

Supplementary accident insurance (or additional accident insurance) generally aims to complement mandatory accident insurance (offering broader benefits, a higher salary base, coverage in private/hospital settings, etc., depending on the contract). The key point here is simple: there is no single "standard" supplementary accident insurance policy; there is your individual contract and its terms and conditions.

3.2 Decision points to be put on the table (Management / CFO / HR)

Without figures or promises, at least pilot these items:

• Territory: worldwide, excluding countries and high-risk areas

• Status covered: short-term assignment, secondment, expatriation, local contract

• Healthcare: coverage outside Switzerland, reimbursement conditions, repatriation arrangements

• Coordination: liaising with LAA, local health insurance, and any travel insurance

• Declaration: deadlines, channels, required documents (certificates, medical reports)

Methodological advice: have the insurer/broker formalize their position on your specific case (country, duration, status) in writing. This document becomes part of the governance framework.

4) Loss of earnings due to illness abroad: preventing the grey area

4.1 Why this is often the weak point of a detachment

Unlike the LAA, loss of earnings due to illness (daily sickness benefits) is very often organised via group insurance based on the contract and its conditions, within the framework of insurance contract law (LCA).

So: no “it follows automatically” reflex.

4.2 The questions that determine the effective coverage

To avoid surprises, document everything:

• Employee status: still a Swiss employee? Contract modified?

• Usual vs. temporary workplace

• Medical examination procedure and certificates (local doctor, language, translation requirements)

• Payment arrangements if the employee is not in Switzerland

• Possible exclusion conditions (certain stay situations, failure to comply with reporting obligations, etc. according to the contract)

Your goal is not to obtain “more”, but to obtain a clear, written and actionable position.

5) LPP (pension fund): continuity desired, but needs to be defined.

5.1 What the general framework says (and what it doesn't say)

The OFAS presents occupational pension provision (LPP/2nd pillar) as an affiliation linked to gainful employment, mandatory or optional depending on the conditions.

On the other hand, the continuity of LPP during an activity carried out abroad often depends on the configuration: maintenance of the Swiss employment link, subjection (A1/CoC), settlement of the fund, decisions of the employer and the pension institution.

5.2 Decision to be made: maintain the Swiss plan or switch

For an SME, the right approach is to explicitly choose between scenarios:

• Scenario A: maintenance of the Swiss LPP plan (continuity of contributions and risk coverage according to regulations)

• Scenario B: switch to a local arrangement (or local contract), with management of coverage gaps and responsibilities

• Scenario C: hybrid setup (to be strictly controlled, as it is often the source of “double contributions” or gaps)

Guide this choice with an internal note and validation from the LPP fund/insurer (or the institution manager).

Mini case studies (without amounts, method-oriented)

Case 1: Engineer seconded to the EU for 18 months, accident on site

A small business in the canton of Vaud sends an engineer to work in the EU for 18 months. An accident occurs on site.

What saves time (and limits discussions) is not "having a police force", but having:

• an A1/CoC certificate available,

• written confirmation from the accident insurer regarding the period,

• a reporting procedure known to the local manager (who, when, what documents),

• a usable medical file (initial report, circumstances, witnesses).

Result: you avoid the “status” debate at the wrong time, and you secure the chain of evidence.

Case 2: Employee on long-term assignment outside the EU, sick leave

A colleague is going away for 30 months outside the EU on a project. After 10 months, she goes on extended sick leave.

Without guidance, typical areas of friction include: non-compliant medical certificates, uncertainty about IJM insurability outside Switzerland, and HR/CFO misalignment on maintaining LPP.

The effective method:

• To confirm the duration and initiate the "extension/maintenance" discussion in advance regarding accidents (if applicable),

• obtain a written IJM position on the mission (territory, medical evidence, modalities),

• Confirm with the pension fund the processing of membership during the mission.

• Set up a monthly follow-up point (status, dates, documents).

You transform a potential crisis into a managed case.

Guidelines and checklist (actionable)

Pilot checklist (to be kept on 1 page)

Subject Decision to be made Evidence Responsible Time

Mobility status: Mission / secondment / other. Internal memo + job description. HR + Management. Before departure.

Social security coverage, maintenance of Swiss law A1 / CoC via ALPS RH / Payroll, before departure

Accidents LAA Continuity and Duration Confirmation by Accident Insurer HR + CFO Before departure + approaching limits

LAA Supplementary Insurance Need for Extension/Assistance Written Position Insurer CFO/HR Before Departure

Loss of earnings due to illness. Coverage abroad. Written position. Daily sickness benefits + HR medical requirements. Before departure.

LPP Maintenance of membership / contributions Institutional validation LPP + internal CFO note Before departure

Key points to include in the schedule:

• A1/CoC certificate: to be requested in a timely manner and ideally via ALPS.

• Posting and accident insurance: benchmark “2 years” and possible extension “up to 6 years” according to OFAS/SUVA documentation.

Box: What needs to be documented

• Internal decision regarding secondment (duration, country, role, risk exposure)

• A1/CoC certificate (and expiry date)

• Contact details and role of the competent accident insurer (Suva or private insurer) and written confirmation of coverage

• Applicable contractual conditions: supplementary LAA insurance, daily sickness benefits (IJM), assistance/repatriation if provided

• Reporting process: who reports, to whom, within what timeframe, and with what documents

• Evidence file in case of an incident: circumstances, witnesses, initial medical report, certificates, proof of presence

Common mistakes and how to avoid them

1. Confusing “travel” and “detachment”

Avoid treating a long-term mission like a one-off trip.

To do: qualify the status, obtain A1/CoC, and document.

2. Wait until the last minute for extensions/approvals

To avoid: discovering a coverage limit when the mission is already underway.

To do: set a milestone halfway through and when approaching the time markers.

3. To assume that loss of earnings due to illness automatically follows

To be avoided: no written proof, medical certificates not accepted.

To do: request the IJM position in writing (territory, evidence, procedures).

4. Do not align HR, CFO and operations on “who does what”

To avoid: late declaration, missing documents, internal debates.

To do: 1 page of governance + designated manager.

5. Forget the “day after”

To avoid: no tracking of dates (A1, extended mission, change of position).

To do: a simple monthly update “status / dates / incidents / parts”.

Questions to ask your insurer/broker (10 questions)

1. For this country and this duration, do you confirm in writing the status and continuity of accident-LAA coverage?

2. From when is an extension or a specific procedure necessary in our case (duration, country, nationality, type of activity)?

3. Which services are actually available on site (support, billing, network, advance payment of expenses)?

4. Does our supplementary LAA cover this status (secondment/assignment), this territory and these activities? What are the key exclusions?

5. What assistance/repatriation guarantees are included (or not) and how are they activated?

6. For loss of earnings due to illness: what medical certificates are accepted abroad (format, language, controls, deadlines)?

7. Is the loss of earnings due to illness maintained if the employee works partially remotely from abroad (multiple jobs)?

8. What documents must be provided in the event of an accident abroad to avoid a dispute (circumstances, witnesses, reports)?

9. Regarding LPP: what steps do you recommend to confirm the continuation of membership and risk coverage during the mission?

10. Can you provide us with a 1-page “operational sheet” (contacts, deadlines, documents) to be given to the employee and the local manager?

Conclusion

A successful secondment is managed like a compliance file: decide on the scenario (maintenance or transition), document the evidence (A1/CoC, written confirmations, procedures), and track dates and changes. The OFAS/SUVA guidelines on accident insurance continuity and the evidentiary logic of the A1/CoC certificate provide a solid foundation for building your governance.

Next step (soft): If you have multiple mobility arrangements (missions, secondments, cross-border teleworking), group them into a single inventory (one table) and have your coverage assumptions validated in writing by your insurers and relevant institutions. This will improve clarity, consistency, and responsiveness should an event occur.