HR Services and Employment Law specialist
Menu
HR Services and Employment Law specialist
Call Us: 01491 598 600 Email Us: cw@gaphr.co.uk
  • Home
  • Services
  • Quiz
  • HR Information Centre
    • Redundancy
    • Disciplinaries
    • FAQs
  • Blog
  • About us
    • Hospitality HR
    • Client Case Studies
  • Contact us

No insurance = no discrimination

Written by Carolyne Wahlen

Bit more formal this time, but I felt that it was important to talk about this, having read about employers who had, incorrectly, paid out.

Private medical insurance, permanent health insurance (PHI) and life assurance are all insured benefits.

This means that it’s the insurance provider who takes the decision on whether it will provide cover and benefits to your employees and on what terms, not you the employer.

An employee’s entitlement to benefits is governed by the terms of the provider’s policy and you won’t be liable to pay anything should the provider refuse payment.

For clients, we are now extending the benefits section of your handbook to confirm that in the event the insurer fails or refuses to provide cover you will not be liable to the employee.

This is because you might take out a group policy only to find that the insurer won’t cover a particular employee or will only provide limited cover for them, e.g. because they have a terminal illness or a pre-existing medical condition.

Therefore, our new wording (in the April 2017 handbooks) ensures that you’ve created no contractual commitment to provide the cover yourself or to make up any shortfall in cover.

Our wording will also give you the right to alter the benefits available under the scheme, or the scheme’s terms and conditions, at any time without any liability to pay compensation to employees.

In addition, where you provide PHI cover to an employee and that benefit entitlement is conditional on them remaining in your employment, in the absence of an express term to the contrary, there’s generally a presumption that you won’t dismiss the employee on account of any incapacity and thereby deprive them of the benefits which are payable under the scheme.

With this is mind, it’s sensible for you to reserve the contractual right to terminate employment due to ill health even if this defeats the employee’s PHI benefit.

We will therefore amend the PHI section in your handbook, if you offer this benefit, to provide that cover is subject to your right to terminate the employee’s employment: (1) due to incapacity; or (2) for any other potentially fair reason (even if this means they’re deprived of PHI benefits as a result).

Any questions, please let me know.

Filed Under: Uncategorized

About Carolyne Wahlen

Carolyne is the founder and owner of Gap HR. She's seen what works in HR and what doesn’t, and has practical answers to real problems that small businesses can apply with immediate effect.

Click here to download

Schedule a meeting with Carolyne

• We exist to help you stay legal, compliant and profitable, without shelling out for an in-house HR manager.

• Our founder Carolyne has worked in people management since 1995, which means you’ve got decades of experience you can rely on.

• Over 170 clients benefit from the experience and expertise of the Gap HR team.

 


Call Us: 01491 598 600

 


email us: cw@gaphr.co.uk

Click here to download

Where our clients are:

Mark Ghafoor, KCC Basildon

“Whether it’s a simple question or a more complex query, GAP HR have ensured that we have the most up to date knowledge of current legislation and processes to ensure we can offer the best support to our teams.
It is reassuring to know that expert advice is only a phone call or video conference away!”

Deb Green, Vermatech Pest Control

“We have been using Gap HR for several years now. Carolyne and her team are professional and efficient and we would not hesitate in recommending them for small businesses. It is a great relief to know we are supported by them for our HR advice and paperwork is kept up to date.”

Justin Wilkie, 2Excel Logistics

“I have been working with Carolyne and her team for 6 years now , when I first purchased 2Excel Logistics I found the HR scary as I wanted to do the right thing for my staff , with Gap HR on my side this all seemed easy and we have gone from 9 staff to 28 with no hassle what so ever , thank you to all at Gap HR”

Ashley Lewis, Wallingford Tiles and Bathrooms

“So pleased to be working with Gap HR. They’ve straightened us out in no time. Their pricing is clear and they really know what they are talking about.”

Helen Gordon, Kitecreative

“We are a growing company but do not have facilities in house yet for HR services in house. Gap HR is our go to service for all kinds of advice about HR for our business and we have found them very reliable, communicative and efficient. Would definitely recommend them”

“Carolyne and team continue to provide great support to our business, with quick and accurate responses to help with our various HR needs.”

“Gap HR have been at our side for a number of years now and are a great help in dealing with our HR needs”

Copyright © 2021 Name & Registered Office:

Gap HR Services Ltd.
Wallingford Road, Goring, Reading, RG8 0HN, UK
Phone: 01491 598 600

Company No. 08146299 | Contact us | Privacy & Cookies Policy | About this Website