Service premium: how to use it and pay it
The service premium is an additional money that must be paid or withdrawn from the salary of an employee of the company that is under contract.
All you need to know about service premium
If a service causes bodily injury, property damage, or other loss to a third party, your business could be held liable. Normally, the people who receive this type of premium are the following:
- People who have an employment contract.
- Domestic service employees.
- Drivers or family service drivers.
- Workers for days or farm workers.
It should be noted that they are usually people who do not have a permanent job, but who provide their services intermittently or for a certain time. To make the payment, it is necessary to follow a series of steps so as not to squander the profit that can be obtained.
Also known as professional liability insurance, this coverage will come to your rescue if your service falls short – it helps cover the costs of defending a legal claim brought against your company due to your alleged professional negligence.
Something that must also be taken into account is that the incapacity for work does not affect the suspension of the employment contract, so for the purposes of paying the service premium it is not discounted and it is considered for the employee and the employer as time worked.