Social Security • Employer’s Philosophy • International HR Strategy
Defining the benefits of your internationally mobile personnel depends on statutory Social Security implications and on your company’s own employment philosophy.
Statutory social security obligations
As a general rule, it is the country of employment which determines the employer’s Social Security and labour law obligations.
As to offshore personnel, the Social Security of the vessel’s country of registration applies and its consequent provisions for personnel employed on board.
However in many parts of the world social security is lacking and public coverage is limited. Adequate protection is therefore essential for your internationally mobile and offshore personnel.
Employer’s philosophy & Non-statutory employee benefits
Every company is aware that supplementary employee benefits contribute to attract, retain, reward and protect an employer’s workforce, while affecting at the same time its employer’s image.
Supplementary employee benefits are non-statutory and are therefore solely defined by the employer’s own HR-philosophy.
It is important to be aware that any HR-requirement regarding Employee Benefits can be met by one of the following solutions :
While Group Insurances are always to be subscribed by the employer, their funding can either be employer-funded, employee-funded via payroll deduction or a combination of both.
Group Insurances can be subscribed for one single benefit up to all four benefits (Healthcare/Life/Disability/Pension), can be limited to specific personnel categories and can also include a number of eligibility provisions
The subscribed benefits by the employer can provide very different levels of protection, varying from basic up to generous indemnities, with a few or many contractual exclusions
Supplementary employee benefits are to complement fully or partly a country’s specific social security provisions and are intended for a subsidiary’s local workforce, but not for your globally mobile personnel.
International HR Strategy
Your globally mobile personnel is responsible for your company’s international presence and expansion. This group includes field service experts, regional managers, international assignees, expatriates and your subsidiaries’ key personnel.
For multinational companies with subsidiaries in different countries, there are no alternatives but to manage their locally employed workforce at subsidiary level, whether for statutory or non-statutory employee benefits.
However regarding the non-statutory employee benefits of your globally mobile personnel, a dedicated international group insurance contract subscribed at headquarters' level offers the following advantages:
Segments a notably sound and low-risk population, resulting in lower pricing conditions
Meets your company's coverage requirements
Covers with great flexibility and minimal administration each eligible personnel member
Can be subscribed for one single benefit up to all four benefits (Healthcare/Life/Disability/Pension)
Enables the creation of an unlimited number of subgroups, whether by country, by subsidiary or cost center, by job function or employment category, each with its distinctive indemnities
Pools your internationally mobile workforce, enhancing the transparency of annual claims statistics and facilitating renewal negotiations