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Expat Law: Health insurance during unpaid leave – What rules apply?


For many highly qualified foreign experts, careers in Germany progress rapidly, but life doesn't always follow the rhythm of an employment contract . Whether it's the longing for an extended trip home, caring for relatives abroad, or realizing a long-desired sabbatical – the desire for a career break, an unpaid leave of absence , is increasingly common in our consulting practice. But while suitcases are being packed, an existential question often remains unanswered, leading to unpleasant surprises upon return or in case of illness: What about insurance coverage when the salary is suspended? As a law firm, we often see that this is particularly relevant for owners of a The legal pitfalls regarding residence permits and social security extend far beyond purely financial matters and can even jeopardize residency status.


The suspension of the employment relationship and the one-month period

Legally speaking, unpaid leave is an agreement in which the main contractual obligations – work in exchange for pay – are temporarily suspended . For each Employers and every For the Human Resources department, this is a standard procedure, but for the person affected... The skilled worker is now beginning a critical period of time. German social security law stipulates in Section 7 Paragraph 3 of the German Social Code, Book IV (SGB IV) , that employment for remuneration is considered to continue as long as the employment relationship is interrupted without payment of wages, but for no longer than one month.


This "one-month limit" is the gold standard for short breaks. If the unpaid leave remains within this timeframe, membership in the statutory health and long-term care insurance remains in effect without any contributions being due . However, if more than four weeks are exceeded, the Companies are legally obligated to deregister employees from social security. For young professionals or academics, this means that from the second month onward, there is no longer automatic protection through their employment.


The mandatory follow-up insurance and its costs

Once the deregistration by the Once the employer's contribution has been received, compulsory insurance ends. In Germany, the so-called mandatory follow-up insurance usually then applies ( § 188 para. 4 SGB V ). This is intended to ensure that no one is left without coverage. The problem for high-earning expats and academics: The health insurance company now classifies them as voluntary members. Without the employer's contribution, they must bear the full cost of their health and long-term care insurance contributions themselves.


Impact on residency rights and identity verification

For foreign nationals, health insurance is not just a matter of health, but a legal requirement for legal residence. According to Section 5 Paragraph 1 Number 1 of the German Residence Act (AufenthG), securing one's livelihood is a standard requirement for the granting of almost every residence permit. Residence permit . Sufficient health insurance coverage is explicitly required to secure one's livelihood. Should the If the immigration authorities discover, during an extension or routine check, that there was no continuous insurance coverage during a prolonged absence, this can lead to significant problems . We strongly advise you to secure legal protection in advance for any extended absence or interruption in premium payments.


Strategies for sabbaticals and stays abroad

Plan For skilled workers who leave Germany during unpaid leave , a dormant insurance policy can be beneficial. This "freezes" their membership and allows for a smooth return to the insurance after their trip. However, it's important to note that anyone who maintains their habitual residence in Germany remains subject to mandatory insurance.

For the area of For skilled worker immigration and global mobility, it is therefore essential that Companies should proactively inform their employees . An incorrect notification or a forgotten interruption notification – which is particularly necessary if the vacation covers exactly one calendar month without a single contribution payment – can reduce later claims.


Conclusion and legal recommendation

Unpaid leave offers valuable freedom but requires precise social security planning . While the first month is contribution-free and straightforward, anything beyond that requires active planning. We recommend that both employees and the employer The Human Resources department should draw up written agreements that clearly define the obligations regarding health insurance. Complete documentation must be provided to the [relevant authority/organization]. The immigration office is responsible for maintaining the A residence permit is essential. Ensure that your private or statutory insurance meets the requirements of the authorities before you begin your leave of absence.


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