More than half (57 percent) of companies offer the same health and wellbeing benefits to overseas employees as those in the UK, meaning they may risk falling foul of local legislative requirements.
Towergate Health & Protection, which conducted the research, said this means companies are opening themselves up to potential issues as employees working abroad will generally need, and be entitled to, different support to people working in the UK.
Sarah Dennis, head of international at Towergate Health & Protection, said: “While on the surface it may seem ‘fair’ to offer everyone the same health and wellbeing support, this is rarely the case. Indeed, as much as it may be an issue if specific benefits are not provided in some countries, it may also cause unintended issues if they are provided.”
Employers need to know about, and comply with, any mandatory legislation regarding the health and wellbeing support they offer in the countries beyond the UK. Rules in some countries may bear no resemblance to those in the UK and what is provided in the UK may not be fit for purpose in other countries and regions.
Employees from the UK going to work in other countries may also require different health and wellbeing support from those who originate from that particular country. This may be because local nationals are offered additional benefits by virtue of being born in the country, and those from the UK may not automatically have access to these benefits so employers need to make them available.
Visa risk
Towergate Health & Protection warned that work visas can be revoked if employers fail to offer the right level of health and wellbeing support. There can also be tax implications if overseas employees are over-compensated in terms of benefits.
In some countries, such as Germany, employees are taxed to cover their medical care, so may just need ‘top-up’ benefits. Overcompensating an employee could lead to additional and unnecessary tax.
The research found that 41 percent of companies with overseas employees do offer them different benefits from their counterparts in the UK, depending upon the country in which they are based. However, employers still need to make sure that the support they offer is fit for purpose and the right level for globally mobile employees and for in-country nationals accordingly.
Benchmarking is also important for employers that have members of their workforce overseas. This should be done by country or region and also by sector, as it will help companies be competitive in attracting and retaining talent, researchers said.
Dennis said: “Health and wellbeing support 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.”
