Rebate on benefits: what to know about the end of this practice?

Being informed about the practices related to the benefits offered to employees is essential for companies that want to maintain a fair and legal working environment.

In this context, one practice that has generated a lot of controversy is the benefits rebate, which consists of the financial return obtained by companies when contracting benefits. With the recent changes in regulations, the end of this practice has generated a lot of discussion, especially about the impact on workers and companies.

In this article, we'll explore what the benefits rebate is, how it used to work, what the law says about it, and why the end of this practice is positive for the market. Check it out!

What is a benefit rebate?

The benefits rebate is a practice that involves obtaining discounts or financial returns for the company that contracts benefits services, such as meal vouchers, food and transportation. 

In other words, the company receives part of the amount spent on these benefits back in the form of a commission or discount, while the worker continues to receive the same amount of the benefit.

How does the benefits rebate work?

As mentioned, in the benefits rebate system, the contractor of the food, transportation or other services receives a financial return on the amount spent on these benefits. This return can vary depending on the type of contract and the negotiation between the company and the supplier.

Although it may seem like a good practice for reducing corporate costs, the rebate directly affects the quality of the benefits offered to employees.

To compensate for the amounts returned to companies, many suppliers end up reducing the acceptance of food or meal cards in commercial establishments or applying higher fees to merchants, which limits the options for workers.

What does the law say about benefit rebates?

The practice of giving back part of the amount paid in benefits has received legal attention following abuses and distortions in the use of this system. The Workers' Food Program(PAT), created to encourage employees to eat properly, ended up being used by some companies to profit from rebates.

In response to this, since 2021, the law has prohibited this financial return in benefits contracts, especially for those operating under the PAT. 

What is the end of benefit rebates?

With the recent regulation of the PAT, the end of benefit rebates has become a reality. The new legislation prevents companies from receiving any kind of financial advantage when contracting benefits for their employees.

The main aim of this change is to ensure that the benefits offered are fair, transparent and focused on the quality of services, without financial interference that could harm workers.

From now on, companies should prioritize contracting quality benefits that really meet the expectations and needs of their employees, without seeking profit or discounts through agreements that result in a financial return for the corporations.

Why is the end of benefit rebates a good thing?

The end of this practice is a positive change, especially for workers. With the end of benefit rebates, it is expected that the services offered by benefit providers will be more focused on the quality and scope of the products offered.

This means that employees will have access to a wider network of establishments, without restrictions, and without the value of the benefits being eroded by commissions or additional fees.

In addition, transparency in the contracting of benefits tends to increase, as companies will need to adopt clearer and more objective criteria when choosing their suppliers, ensuring that the benefits are advantageous for all parties involved. 

How to contract HR benefits correctly?

To ensure that benefits are contracted fairly and in accordance with the law, it is essential for HR to look for solutions that meet the needs of both the company and its employees.

In this sense, with the end of the benefits rebate, it is important to rely on partners who offer transparency, quality and complete support in the management of these services.

Alymente is a platform specializing in corporate benefits, which provides practical, efficient and legally compliant solutions. With a wide acceptance network and an approach centered on employee satisfaction, Alymente ensures that companies offer high added value benefits, without complications or practices that compromise the quality of the service.

If you want to contract benefits efficiently and securely, check out the solutions from Alymente and offer your employees a complete and differentiated experience.

In a nutshell

How does the benefits rebate work?

A benefit rebate is a mechanism whereby part of the benefits received are returned to the payer or another entity. This can occur in various situations, such as in healthcare programs, where a portion of the costs paid for treatments can be reimbursed to the patient or service provider.

What does the law say about benefit rebates?

The practice of rebate, which involves discounts or advantages offered by suppliers of food vouchers (VA) and meal vouchers (VR) via PAT to companies, is prohibited. The legislation aims to ensure that the benefits are used exclusively to promote workers' health and food safety.

Image credit: Freepik.

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