I’m currently tracking two human resource trends that will likely
remain strong in 2013 and beyond and which are generating questions in the
benefits world. They are: (1) Increased
global hiring and (2) increased outsourcing.
The impact of these developments – and they have been noted on a number
of human resource trend prediction lists for 2013 – is that we are fielding more
questions about providing disability coverage to contract workers who come into
Canada on a temporary work visa.
Providing health coverage for these individuals is relatively
straightforward; providing disability coverage is a little more involved
and employers should ascertain the insurer’s coverage criteria for foreign
workers before offering this benefit.
Be aware that some carriers don’t offer disability insurance at all to
foreign contract workers; others do but usually with some restrictions and limitations.
For insurers that do offer disability coverage to foreign contract
workers, some of the following boundaries might apply:
- Coverage limited to duration of the work visa with maximum time frames imposed
- Insurer must be notified when the individual’s employment status changes from contract worker to permanent resident
- In the event of a disability payment, insurers may have varying rules as to when payments cease, for example, two years after the date of disability.
- There may be allowances for work permit extensions.
- Foreign contract workers must be listed during annual renewal census reviews.
- Coverage ceases upon leaving Canada.
In short, as Canadian hiring practices continue to tap into foreign
talent and more non-Canadians enter the workforce on foreign worker visas, make
sure you investigate your disability insurance details before making any
promises to prospective candidates. You
want to make sure you have the appropriate coverage in place.
Judy Buckley
V.P. Consulting