As an employer in France, you are required to offer your employees a company health insurance contract. When you use the DUE (Unilateral Decision of the Employer) to set it up, you must follow a precise procedure, on pain of a URSSAF reassessment. MIA Assurances, the broker specialising in group insurance, explains everything.
What is the DUE (Unilateral Decision of the Employer)?
The DUE is a written document by which the employer undertakes, as part of its management authority, to set up a benefit for its employees (health insurance, death and disability cover, supplementary pension and so on). The commitment is made unilaterally: the employer is the sole decision-maker and is not required to negotiate the terms with the employees.
It is the simplest and most flexible legal instrument, particularly suited to VSEs and SMEs without staff representation. One essential point: the provisions of a DUE cannot be less favourable than what is provided for by law, collective agreements or employment contracts.
When to use the DUE?
Before drafting a DUE, check several points:
- Whether your National Collective Bargaining Agreement (CCN), or a sector-wide agreement, requires the use of a specific insurer or sets minimum guarantees.
- Whether a company agreement or a referendum agreement determining the choice of insurer has already been concluded.
If none of these cases applies, you are free to choose your insurer. This choice must then be formalised in writing and communicated to employees via the DUE. The employer must also contribute to the funding of this health plan, and this contribution may be exempt from social contributions, subject to conditions.
DUE and URSSAF compliance
A major issue
This is the point not to be overlooked. In the event of a URSSAF audit, the company must be able to provide a written act formalising the health and/or death and disability scheme. Any flaw in its drafting or its delivery exposes the company to a reassessment covering the last three complete calendar years.
In practical terms, the exemption from social contributions is directly linked to the compulsory and collective nature of the affiliation. If the DUE is poorly drafted or if employees are not affiliated without a legal waiver case, the exemptions from charges are cancelled and the company must reintegrate these sums into the contribution base.
The details to include in your DUE
For a DUE establishing health insurance or death and disability cover, formalise in writing and as precisely as possible:
- The purpose of the decision (to establish supplementary health cover and/or group death and disability cover);
- The beneficiaries (the categories of employees concerned and their dependants);
- The guarantees and the risks covered;
- The amount of the contributions and the share funded by the employer;
- The compulsory nature of membership and the applicable waiver cases;
- The conditions for revising and terminating the contract;
- Where applicable, the prior information and consultation of the Social and Economic Committee (CSE).
If the DUE mentions the insurer or the broker, a clause should be included specifying under what conditions and at what intervals this choice will be reviewed, without this preventing you from changing it during that period.
Delivery to employees: essential proof
Drafting the DUE is not enough: you must prove that it has indeed been given to each employee. This condition is checked in the event of a URSSAF audit. The employer must therefore plan ahead by keeping proof of delivery: a signing sheet, an individual acknowledgement, a receipt and so on. The same requirement applies to new recruits, who must be informed of the existence of the DUE and receive a copy of it.
In the event of a change to the contract (change of insurer, change in guarantees), you must revoke the old DUE and set up a new one. A change favourable to employees applies immediately, whereas an unfavourable change requires notice and a specific procedure.
For the full regulatory framework, you can consult the dedicated URSSAF page on compulsory health insurance.
MIA Assurances helps you secure your DUE
A poorly drafted DUE can prove costly: loss of social exemptions, a URSSAF reassessment over three years, disputes with employees. It is better to secure the scheme from the outset.
This is our job. As a specialist insurance broker in social protection, MIA Assurances supports VSEs, SMEs, mid-cap companies and foreign companies established in France in setting up and bringing their group schemes into compliance. We help you choose the insurer best suited to your CCN, formalise your DUE according to URSSAF requirements, and manage your guarantees over time.
FAQ – Unilateral Decision of the Employer (DUE)
- Is the DUE mandatory to set up company health insurance?
Group health insurance is compulsory, but the DUE is only one of the ways to formalise it. You can also use a sector-wide agreement, a company agreement or a referendum. The DUE remains the simplest and most flexible route, especially for small organisations.
- What does the company risk if the DUE is poorly drafted?
A URSSAF reassessment covering the last three complete calendar years, with cancellation of the social contribution exemptions and reintegration of the sums into the contribution base.
- Do employees need to sign the DUE?
The DUE does not need to be negotiated or approved by the employees, but the employer must be able to prove that it has been given to each of them (signing sheet, receipt and so on). This proof is required in the event of a URSSAF audit.
- Do you need to consult the CSE before setting up a DUE?
Where a Social and Economic Committee exists in the company, it must be informed and consulted beforehand, and this consultation must be mentioned in the DUE.
- How can you make changes or switch insurer after a DUE?
You must revoke the existing DUE and draw up a new one, following the employee information procedure. An unfavourable change requires notice.
