So for those of you who personally know me, have often heard of my frustration when it comes to the human resources reputation. Ultimately, I truly do love the profession and I love that it can support a business as well as protect it. I say it often, your employees are your greatest asset, but can also be your greatest liability.
Here's a recent case that demonstrates the liability...
Winpak Ltd. v. C.E.P., Local 830, 2010
Cole's notes version of the case: Set in the province of Manitoba, Canada an employee goes on disability due to an injured back. The injury did not occur due to work, however prevented the employee to work, much like an illness.
When an employee goes on long term disability (LTD), during the first 12 months (typically) you are only asked about being able to do your own job. After 12 months, the insurance provider asks if there are any accommodations that could be made, or if you could do another job, similar in stature and pay. If you cannot, your long term disability benefits are continued.
Typically a long questionnaire is asked, and in the case of above, he said that he could no longer do anything, he couldn't even drive - he was pretty much bed ridden and could only watch TV/movies (direct quote!) The doctor, didn't deny any of this, wrote a note and did not state a date of return. If the doctor can't find anything, but the patient still complains, this is typical practice. It's like the guy who has migraines, but nothing can be found, but he still says she's in pain - it's hard for a doctor to say, "You're lying" or "I don't believe you."
Anyway, the insurance company hires an investigator who follows him for two days. And guess what? He can drive, and is caught carrying bags to his car. He drives around all day going to various stores and seems to be walking without issue (videotaped). He picks up his wife in the car both days. And at one point goes to the gym for 4 hours. Yup - 4 hours. (Later he claims that his physio therapist told him to swim, but he conveniently left that off the questionnaire...) No matter how you slice it, he's certainly not bed ridden.
So he was fired for cause - and it turns out, as long as you have really good evidence that the person was indeed showing dishonesty - you've got it - no payout, nothing. Dishonesty = cause. And I'm pretty sure now that the insurance agency will take their run at him too - after all, it smells like fraud!
A human resources department has to be vigilant when handling benefits claims. Of course they have to be supportive of the employee - but they also have to be looking out for the company and make sure the company is protected. In most cases, Long Term Disability insurance is paid for by the employee to avoid taxes should they ever have to use it. This guy was going to make insurance premiums go up for everyone - if he was truly, legitimately disabled - sure - not a problem. I can't say for sure that a Human Resources representative was part of this case, but if they were - they were doing their job.
An outsourced HR representative can help in these types of situations - if you've got questions, we've got answers.
http://www.elevatedhr.com/
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