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News Employers will not be able to influence employees when choosing life insurance

We would like to inform you, that the Act No. 170/2018 Coll. on the Distribution of Insurance and Reinsurance changes the conditions for the employers contributing to private life insurance of their employees as of December 1, 2018.   

 

Under the existing legislation, the employer can enter into an “exclusive contract” with one insurance company only; even if it was solely for the purpose of one specific insurance to which the employer would contribute.

 

Starting on December 1, 2018, the aforementioned will no longer apply. The Section 51 of the Act above stipulates that the employer must not influence its employees when choosing the savings insurance or accept any monetary or nonmonetary benefit which may lead to a breach of this obligation. This means that employees may now choose any insurance company to conclude a contract with, and the employers have to accept such contracts and contribute to that insurance accordingly. Exerting pressure on an employee when choosing the insurance provider may result in a fine of up to CZK 1,000,000.

 

If you wish to find out more about the employees life insurance, do not hesitate to contact us.

 

Nikola Kleinová

Senior Tax Consultant

D +420 296 152 273

E Nikola.Kleinova@cz.gt.com