As an Employer, Why Do You Need to Provide Health Coverage for Your Foreign Workers?
When employers hire foreign workers, they have an obligation to ensure that the workers are protected from accidents or illnesses that may occur during their stay in Canada. One way to protect temporary foreign workers is by providing health coverage.
In this article, we'll explore the reasons why employers need to provide health coverage for their foreign workers, the types of coverage available, and who pays for the cost of health insurance.
Why do Employers Need to Provide Health Coverage for Foreign Workers?
Legal Obligations
Attracting and Retaining Talent
Improved Employee Productivity and Morale
Cost Savings
Social Responsibility
Peace of Mind
Legal Obligations
As mentioned earlier, employers who hire temporary foreign workers are required to provide them with health insurance that covers emergency medical care.
This legal obligation is not only important for the well-being of the workers but also protects the employer from any legal issues that may arise if an accident or injury occurs.
Employers who fail to provide health coverage may face hefty fines and even lose their eligibility to hire foreign workers in the future.
Attracting and Retaining Talent
Providing health coverage can be a great way to attract and retain talent. In today's competitive job market, employees are looking for more than just a salary.
Offering comprehensive health coverage can set your company apart and make it more attractive to potential employees, especially those coming from countries with less comprehensive health care systems.
Improved Employee Productivity and Morale
Healthy employees are more productive and have higher morale. Providing health coverage can help ensure that employees are healthy and able to work to the best of their abilities. This, in turn, can lead to increased productivity and improved job satisfaction.
Cost Savings
While providing health coverage may seem like an added expense, it can actually lead to cost savings in the long run. By keeping employees healthy and productive, you can avoid costly sick leave and reduce employee turnover.
Additionally, providing preventative care can help catch health issues early, before they become more serious and expensive to treat.
Social Responsibility
Providing health coverage is also a matter of social responsibility. As an employer, it's important to take care of your employees, regardless of where they come from.
Providing health coverage shows that you value the health and well-being of your workers and are committed to treating them fairly.
Peace of Mind
Providing health coverage can give both the employer and the employee peace of mind. Knowing that they are covered in case of an emergency can help alleviate stress and anxiety for both parties. This can lead to a more positive and productive working relationship.
What Types of Health Coverage are Available?
While provincial healthcare plans in Canada provide some level of coverage to temporary foreign workers (TFWs), they typically only cover the most basic healthcare services.
This coverage often does not include prescription drug coverage, emergency dental services, or coverage for various paramedical practitioners, such as chiropractors, physiotherapists, and massage therapists.
For this reason, many employers who hire TFWs provide their workers with group insurance coverage that goes above and beyond what is provided by the provincial healthcare system.
Supplemental Health Care Coverage
Supplemental healthcare coverage provides TFWs with additional coverage for medical services and treatments that are not covered by the provincial healthcare plan.
This may include prescription drug coverage, coverage for emergency dental services, and coverage for various paramedical practitioners.
Prescription drug coverage can be particularly important for TFWs, as many prescription drugs can be very expensive without insurance coverage.
Emergency dental services are also important, as dental emergencies can be extremely painful and require immediate treatment.
Coverage for paramedical practitioners is also valuable, as these practitioners can provide non-invasive treatments that can help alleviate pain and improve overall health.
Income Replacement
If a TFW becomes disabled or ill and is unable to work, income replacement coverage can provide them with financial support. This coverage can help TFWs cover their living expenses while they are unable to work, ensuring that they do not fall into financial hardship.
Income replacement coverage may also provide financial support to TFWs who are caring for a family member who has become ill or disabled.
Life Insurance
Life insurance provides TFWs with coverage in the event of their death. This coverage can help ensure that their family members are financially supported in the event of their untimely passing.
Life insurance can also provide TFWs with peace of mind, knowing that their loved ones will be taken care of in the event of their death.
Eye Exams and Vision Care Coverage
Many TFWs spend long hours working in front of computer screens or in other environments that can be hard on their eyes.
Eye exams and vision care coverage can help ensure that TFWs receive the eye care they need to maintain good vision and eye health.
This coverage can include regular eye exams, coverage for prescription eyeglasses or contact lenses, and coverage for treatments or procedures that can help improve or maintain eye health.
Repatriation Benefit
If a TFW becomes seriously ill or injured while working in Canada, repatriation coverage can help ensure that they are transported back to their home country for medical treatment.
This coverage can help ensure that TFWs receive the care they need, even if it is not available in Canada. Repatriation coverage can also provide peace of mind to TFWs, knowing that they will be taken care of in the event of a serious medical emergency.
Who Pays for the Cost of Health Insurance?
Employer Responsibility
Worker Responsibility
Employer Responsibility
The cost of insurance for the first three months is typically paid by the employer. This cost is part of the employer's responsibility to provide temporary foreign workers with adequate health coverage.
Worker Responsibility
After the first three months, the cost of health insurance should be deducted directly from the worker's salary. This cost becomes the worker's responsibility after they have been in Canada for three months.
Looking to provide your foreign workers with the necessary healthcare coverage?
Click through the video below to learn about the FWCHP.
Conclusion
Providing health coverage for temporary foreign workers is essential for protecting both workers and employers. Employers have a legal obligation to provide health coverage for their foreign workers, and failure to do so can result in significant legal and financial consequences.
The types of health coverage available include supplemental health care, income replacement, life insurance, eye exams and vision care coverage, and repatriation benefit.
The cost of health insurance is typically the responsibility of the employer for the first three months, after which it becomes the worker's responsibility.
By providing adequate health coverage, employers can ensure that their foreign workers are protected from accidents or illnesses that may occur during their stay in Canada.
For more information on the types of group insurance programs available and the applicable costs, please click “Get a Quote” today.
