“ MANY EMPLOYERS SIMPLY OFFER THEIR EMPLOYEES A LUMP SUM AND LEAVE THEM TO BUY THEIR OWN HEALTH AND WELLBEING COVER, GIVING THEM THE FREEDOM TO CHOOSE WHAT THEY THINK IS RIGHT. THIS IS, HOWEVER, RARELY THE BEST OPTION.”
IMPLICATIONS OF NON-COMPLIANCE Not offering the right level of health and wellbeing support can have legal consequences. Working visas may be reliant on particular health cover and can be revoked if it is not provided, so it is vital that employers get this right. As well as legal implications,
there can also be tax implications when overseas employees are over- compensated with benefits. In some countries, such as Germany, employees are taxed to cover their medical care, so they may just need top-up benefits. Overcompensating an employee can lead to additional and unnecessary tax.
FIT FOR PURPOSE The good news is that 41% of companies with overseas employees offer different benefits from those offered in the UK. However, they still need to ensure that the health and wellbeing support they offer is fit-for-purpose and the right level for globally mobile employees and in-country nationals accordingly. It is important for companies
with employees abroad to benchmark their offering. This should not only be by country or region, but also by sector, as it will help companies be genuinely competitive in attracting and retaining the right talent. Health and wellbeing support
40
should not be just blanket cover for all employees abroad. It should be carefully
tailored to
meet employees’ needs based on the countries in which they are working. Employers must make use of in-county expertise to help ensure that they are fully meeting their responsibilities.
OFFERING CASH LUMP SUMS Many employers simply offer their employees a lump sum and leave them to buy their own health and wellbeing cover, giving them the freedom to choose what they think is right. Indeed, Towergate Health & Protection’s research shows that 83% of employers with overseas staff give their employees a cash lump sum for them to choose their own benefits. This is, however, rarely the best option. Providing a cash lump sum,
rather than offering specific benefits, leaves both the employer and the employee open to the unknown, which can prove risky. Employee benefits are a specialist area and it is best to take expert advice to ensure both the employer and the employee are properly protected.
EMPLOYER IMPACT It can be more expensive for an individual to purchase their own healthcare than for an employer via a group scheme. Employers will
benefit from economies of scale when they purchase cover for a number of employees; providing individuals with lump sums is likely to work out to be more expensive. Employers have a duty of care
to all employees. It could be argued, especially for employees working abroad, that this is not fulfilled by offering a lump sum rather than specific health and wellbeing support from an approved and expert source. Health and wellbeing support and
the surrounding employee benefits are a crucial part of attracting and retaining the right talent, especially for overseas posts. If the employer is purely providing a cash lump sum, then this does not reflect well on their care for employees and may impact the recruitment process and mean that staff are less likely to want to work for them.
EMPLOYEE IMPACT In some countries, certain employee benefits are mandatory in order for the employee to be eligible for a working visa, such as having PMI in Dubai. If the employee selects their own benefits, then they are at risk of not knowing which are compulsory and leave themselves, and their employer, open to non-compliance issues, such as working visas not being given, or being revoked. There is also a risk of poor,
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106