Companies must ensure flexible benefits schemes aren't falling foul of the gender directive, warns PMI Health Group.
The UK’s largest independently-owned specialist provider of employee healthcare some businesses may still be operating flex packages that do not comply with current regulations.
Introduced in December 2012, the gender directive means insurers cannot use gender as a determining factor in the cost of premiums or benefits. However, PMI Health Group is advising companies to ensure flex schemes no longer offer pre-existing rates on cover - such as life insurance, critical illness or income protection - that differ for male and female employees.
"Employers risk being accused of sexual discrimination if they do not offer unisex rates on cover as part of flexible benefits schemes," said Nick Cosh, Head of Group Risk, PMI Health Group.
"For example, an employee may be offered a basic level of life insurance, which is perhaps four times their salary, but with the option to flex that up to a higher level of coverage at their own cost.
"In the past, the rates applied to these flex options have been gender specific but this is no longer legal. Employers aren't necessarily aware of this and may not have changed the rates on their system, so it is important they do so immediately."
