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employer trying to remove contract deliverable

  • 09-07-2013 1:32pm
    #1
    Posts: 0


    Hi,

    My gf's workplace is attempting to remove her health insurance even though it is a benefit outlined in her contract.

    The employer mentioned this in a meeting: 'need to give you reasonable notice... and we might consider making a 50% contribution this year and then that will be our buy out of the contract'

    They are trying to get her to sign something to allow this, have told her not to sign anything.

    Am I right in thinking this is bang out of order? What come back does she have as they are refusing to pay for her health insurance this year.

    Cheers,
    N


Comments

  • Posts: 0 [Deleted User]


    I have to highlight that also my gf has no HR contact to liaise with.


  • Registered Users, Registered Users 2 Posts: 3,332 ✭✭✭tatli_lokma


    OP, your GF needs to consider really how much this health insurance is actually worth to her. She will be paying BIK tax on it anyway, and depending on the level of cover and how much use she gets out of it, it might not be a bad idea to consider dropping it.

    A friend of mine recently had the same issue. Her employer had been paying a 75% contribution to VHI for several years, and as a cost saving measure they requested staff agree to a 50% contribution. Upon looking into it, she discovered that with an alternative insurer, she could get practically the same level of cover fully paid by herself with no contribution from her employer. It would only cost her an additional €10 per month and some of the benefits of the new policy suited her better. so she quite happily gave up the VHI. After she told me I looked into it myself and am considering cancelling my membership of our group scheme, as for what we pay in BIK the benefits don't really fit with the needs of our family.

    Your girlfriend of course shouldn't sign anything until she looks into it further, but don't make a snap judgement that this is a terrible thing - it might not be.

    Also, if the company are having financial trouble with the wages bill, surely it is better to loose the insurance contribution than take a pay cut or worse, let people go?


  • Registered Users, Registered Users 2 Posts: 4,337 ✭✭✭Bandana boy


    Usually an employer will buy out a clause in your contract
    the standard practise is two years benefit to remove a clause.


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