Legislated Obligations: Employers To Employees

July 11, 2016

The Chamber of Commerce is hosting a panel discussion on 15th July 2016 in collaboration with the Bermuda Health Council, Department of Social Insurance [DOSI], the Pension Commission and the Health Insurance Department [HID] about the legislated obligations of employers to their employees.

“The discussion includes an overview of employer responsibilities under the Health Insurance Act 1970, the Contributory Pensions Act 1970 and associated regulations as well as providing an opportunity to discuss the health insurance products offered by HID,” a spokesper

“Section 20 of the Health Insurance Act 1970 stipulates that an employer must provide an active health insurance policy with a licensed insurer [or approved scheme] for him or herself, all employees and their non-employed spouses.

“The Health Council monitors and enforces employer compliance with this Act. The Contributory Pensions Act 1970 authorises DOSI to manage the public pension fund and authorises the Pension Commission to monitor and ensure integrity of all private pension plans available on the island.

“Through regular monitoring and enforcement of these Acts, it is often discovered that employers are unsure of their full responsibilities to their employees. Between 1st January 2015 and 31st December 2015, the Health Council investigated 1,016 reported employers with inactive health insurance policies, representing 3,039 employees without health insurance coverage.

“Following the investigations, 787 employers settled their arrears and re-established their policies. This resulted in 2,115 employees regaining health insurance coverage. Similar cases have been investigated by DOSI and the Pension Commission which highlights a gap in the system.

“This panel discussion provides an opportunity for employers to be informed of and ask questions about their legal obligations to their employees.

Ian Cameron, Compliance Officer of the Health Council said: “This inter-agency panel discussion will provide a good opportunity for employers to familiarize themselves with the specific requirements of the Health Insurance Act 1970 and the Contributory Pensions Act 1970 as investigations have often revealed that employers’ delinquency with health insurance is in tandem with delinquency in pension contributions as well.”

“This has long-term implications for employees who are often unaware that contributions are not being made by their employer. This discussion will assist employers in gaining a better understanding of their responsibilities and allow for improved fiscal planning”.

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  1. Real Deal says:

    This kills small and start up business. $600 per person.