Companies risk inadequate support by offering uniform benefits to overseas employees

New research from Towergate Health & Protection reveals that 57% of companies with overseas employees might be risking legal and financial issues by offering the same health and wellbeing support to workers abroad as those in the UK. This approach could lead to inappropriate support for those based internationally.

Sarah Dennis, Head of International at Towergate Health & Protection, stressed the complexity of international benefits, explaining: “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.”

The study highlights the necessity for companies to understand and comply with the health and wellbeing support mandates of the countries where their employees are based. Regulations and requirements can vary significantly from those in the UK, making it crucial for companies to seek expert advice to ensure compliance.

For UK employees working abroad, the situation is further complicated by differences in entitlements that may not be available to them as foreign nationals, necessitating additional benefits to ensure parity.

The consequences of not providing appropriate support are significant. Not only could there be legal ramifications, such as the revocation of work visas dependent on specific health coverage, but there could also be financial implications. For example, in some countries like Germany, where medical care costs are often deducted from an employee’s salary, providing excessive benefits could lead to unnecessary taxation.

Sarah Dennis adds: “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-country expertise to help ensure that they are fully meeting their responsibilities.”

While 41% of companies do offer differentiated benefits depending on the employee’s location, ensuring these benefits are fit for purpose remains a challenge. Companies are advised to benchmark their offerings not only by country or region but also by sector to attract and retain the right talent effectively.