New Beginnings: Starting Fresh in the New Year

by Grace Chen

New Labor Laws in 2026 Aim to Boost Employment Rate to 80%

A sweeping set of reforms impacting employers and employees alike came into effect on January 1, 2026, driven by a federal government objective to achieve an 80% employment rate. The changes, analyzed by the social secretariat and HR expert UCM, place new responsibilities on all stakeholders – workers, employers, doctors, and mutual insurance companies – with a particular focus on facilitating the return to work for individuals with long-term illnesses.

The government’s push for a higher employment rate necessitates a fundamental shift in how companies manage employee health and absences, according to a company release. Several key modifications have been implemented, impacting everything from sick leave policies to the process of contract termination.

Reduced Allowances for Absences Without Medical Certificates

Companies employing more than 50 workers now require a medical certificate for absences exceeding two days, a reduction from the previous allowance of three days. This change aims to curb unscheduled absences and encourage employees to seek medical attention when necessary. However, small and medium-sized businesses are exempt from this new rule and retain the flexibility to require a certificate for each day of absence.

Faster Termination Procedures for Medical Incapacity

The timeframe for initiating contract termination due to permanent medical incapacity has been shortened from nine to six consecutive months. This accelerated timeline reflects a desire to streamline the process when an employee is unable to fulfill the requirements of their role. The new rule applies to both ongoing incapacities and those beginning on or after January 1, 2026.

Extended Relapse Period for Guaranteed Salary

A significant change concerns the definition of a “relapse” in illness. Previously, returning to work for as little as 14 days before falling ill again would disqualify an employee from receiving a new period of guaranteed salary, except in cases of a different pathology. As of January 1, 2026, this period has been extended to eight weeks. This means a new period of guaranteed salary is only triggered if an employee experiences a recurrence of illness at least eight weeks after returning to work. This rule applies to incapacities beginning after this date and does not retroactively affect existing guaranteed salary periods.

Mutual Insurance Companies Cover Relapse Costs for Part-Time Medical Leave

The financial responsibility for relapse coverage for employees returning to work on a part-time medical basis has shifted. Previously, the employer covered guaranteed salary after 20 weeks of resumption, following initial coverage by the mutual insurance company. Now, the mutual insurance company will provide coverage even beyond the 20-week mark, provided the incapacity begins after January 1, 2026. Existing illnesses initiated before this date remain subject to the previous regulations.

Mandatory Employer Contact with Sick Employees

Employers are now legally obligated to maintain regular contact with employees on sick leave. Companies must incorporate a clear procedure into their work regulations outlining who will contact the employee and how frequently. This measure aims to foster support and facilitate a smoother return-to-work process.

New Solidarity Contribution for Incapacity Compensation

A new solidarity contribution has replaced the former accountability contribution. Companies with 50 or more employees will now pay a contribution equal to 30% of the incapacity compensation paid by the mutual insurance company during the two months following the guaranteed salary period. This contribution, calculated by the ONSS, will be due alongside the contributions for the third quarter following the quarter in which the incapacity began. The contribution applies to workers aged 18 to 54, excluding those in flexi-jobs or temporary positions.

Electronic Medical Certificates and Reintegration Processes

Further measures include the gradual implementation of electronic medical certificates, starting with doctors and mutual insurance companies, with eventual integration for employers. Additionally, employees are now required to actively participate in reintegration processes offered by their company, facing potential sanctions for non-compliance. These provisions also took effect on January 1, 2026.

These changes represent a significant overhaul of labor regulations, signaling a strong governmental commitment to increasing employment and supporting workers’ return to the workforce.

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