To think my employer shouldn't be making joining their private medical insurance scheme a condition of employment

[akdmummy]

I am about to start work as a fixed term contractor.

In my contract it states that a condition of employment is that I either join their private medical insurance scheme or prove that I am already covered by one.

My issue with this is that joining this scheme through work is a taxable benefit so say the annual premium is £600 then I would have to pay 40 percent of that in extra tax whether I use it or not.

I haven't needed to go to the doctor except for pregnancy related things in the past 20 odd years so I don't really feel that I should be forced into something that will cost me. I understand my health situation may change but AIBU to think that this isn't really on? Can anyone out there tell me if a company can really force an employee to take on a benefit that will cost them?

Thanks

That's odd. Are you in construction? Not sure what other industry would force contractors to take up health insurance.

My industry insisted on this too (UK outpost of US-based bank). Was told it was part of their culture of ensuring the wellbeing of employees - as i understood it was so they could be involved, say if you develop a long-term health condition that might impact your ability to work, you might need occupational therapy/counselling, they have to implement workstation adjustments/phased return etc. It's not a bad thing to have - and many schemes include cover for any partner/spouse/kids for free.

Not construction no. It's equipment hire.

Wasp - I understand the points you make and totally agree but my contract is only for a few months and I think I resent not being given the choice of whether to take on this taxable benefit or not. Cover for spouse, children would also be taxable but that is optional!

Wasp - I working in IB too but never saw it applied to contractors before. I thought that was the point of having them as contractors rather than employees. Ring up HR OP and ask them why you can't opt out - I think you prob can. It's illegal to tie jobs to successful health insurance (and ergo the medical assessments they use) in the UK, as it amounts to discrimination

Thanks Colby

Taken from the website of unum.co.uk, an insurance company offering packages to employers:

There are sound business reasons for offering health benefits, beyond being a caring employer:
Sickness absence costs businesses £600 per year
300,000 people leave work due to illness or injury each year
Recruiting and getting a new employee up to speed costs, on average £30,6145

I think this may give you the answer to your employer's condition of employment.

That applies to employees not fixed term contractors- their conditions of employment can usually be terminated at any time by either party subject to a notice period. Even in the case of employees - they can always opt out of insurances.

I'd be very surprised if you couldn't opt out as a fixed term person.

My husband is allocated so many points each year by his work. With these points he must use some to "buy" health insurance through the company. The other points can be used for days off or gym membership. It does feel like a bit of a swizz (don't get me started on the company car that costs him a bomb in tax because it's a perk - even though if he uses it for personal use he has to pay the company so much per mile).

You need to check the T&Cs of the insurance. If it is purely to cover any accident etc at work, or only to support you returning to their employ (fixed term or not) then its tax free. They may have limited cover on this basis.

I think Unum need to give that section of their website a little proofread, those numbers don't look quite right!

Just to state the obvious, there's a difference between a contractor (not an employee; few rights) and a fixed-term contractor (an employee with equivalent rights to perm staff).

It's not to cover accidents at work and I totally get the business (and personal) side of the argument.

Thanks for you input everyone. I will push back on it as I am a contractor. FWIW I don't think it should be compulsory for permanent employees either given that there is a cost to it but I guess that's a discussion I don't need to have at the moment.