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Human Resources (1,155)
MHR 523 (473)
Lecture 9

MHR 523 Lecture 9: MHR523 – Lecture 9

8 Pages
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Department
Human Resources
Course Code
MHR 523
Professor
Danielle Lamb

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Description
MHR523 – Lecture 8 (Chapter 13) Employee Benefits  Indirect financial payments given to employees  May include supplementary health and life insurance, vacation, pension, education, plans, and discounts on company products  Strategic Importance of benefits? o Used as leverage to encourage the behaviours a company wants o Promote health, fitness Government-Mandated Benefits • Employment standards act ensures the Leaves of Absence, Vacation and Holidays, and Paid Breaks • If it is law, is it truly a benefit? o Not really a true benefit o Benefits go beyond what is required • Important distinction between mandatory and voluntary benefits. • Leaves of Absence o Unpaid time off o Conditions vary by jurisdiction o Employer must guarantee same or similar job when employee returns o Common types: • Maternity/parental leave • Parental/adoption leave • Bereavement leave • Compassionate care leave • Vacations, Holidays, and Paid Breaks o Vacation • Minimum amount of paid vacation must be provided to employees o Holidays • Varies by jurisdiction • Minimum 5 days, maximum 9 o Paid Breaks • Uninterrupted break within a work day • E.g. 30 minute break on a shift over 5 hours  Employee Insurance (EI) o Basic safety net in the event that you lose your job through no fault of your own o Federal benefit program o How does it work?  have to work for at least a year to qualify  Eligible to receive this benefit up to 45 weeks depending on the economy  Deducted from pay  What if I never make an EI claim? o Won’t receive it  Pay on Termination of Employment o Note: does not apply when just cause for termination has been established. o Amount of payment varies according to jurisdiction and circumstances:  Pay in lieu of reasonable notice  Severance pay (Ontario and federal jurisdiction only)  Pay for mass layoffs (some jurisdictions)  Canada/Quebec Pension Plan (CPP/QPP) o Provides some level of retirement income based on years of employment and contributions o Money is deducted directly from pay o Withdraw from 60-70 years old o Offers survivor or death benefit o Disabled benefit o 5% of income o Receive 25% of the average earnings paid in the plan o Three types of benefits:  Retirement income  Survivor or death benefits  Disability benefits o Benefits based on individual contributions made  Old Age Security (not dependent on Employment)  Ontario Retirement Pension Plan (ORPP)  Workers’ Compensation o “No fault” insurance plan o Income and medical benefits to victims of work-related accidents or illnesses, regardless of fault o Funded collectively by employers o Administered by jurisdictional workers’ compensation boards Voluntary Employer-Sponsored Benefits  Life Insurance o Additional benefits:  Accidental death coverage  Dismemberment coverage  Critical illness insurance  Supplementary Healthcare/Medical Insurance o Supplements provincial healthcare plans o Usually includes prescription drugs, private/semi-private hospital rooms, other health costs not covered by provincial plans o May include dental, vision care, hearing aids  Short-Term Disability and Sick Leave Plans o Provides income to employees when absent due to non-work related injury or illness o Sick Leave Plan  Provides income for 2 or 3 days  Usually a specified number of sick days peewe er year  Long-Term Disability o Income to employees for absence due to non-work related long-term injury or illness o Disability management o Mental health issues are leading cause of disability claims  Sabbaticals o Time off to rejuvenate or pursue personal goals o Usually unpaid o Helps retain employees and avoid burnout  Retirement Benefits o Defined benefits pension plan: A plan that contains a formula for determining retirement benefits.  Employer bears the risk, secure for employee  If market has crashed, employers have to find another way to get the money o Defined Contribution Pension Plan: a plan in which the employer’s contribution to the employer's retirement fund is specified  Employees bears the risk  No guarantee Mandatory Retirement? • In Ontario, do employees have to retire at age 65? • Effective December 12, 2006 the Ontario Government’s Bill 211 came into effect eliminating mandatory retirement at age 65. • The Ontario government’s objective of ending mandatory retirement is reflective of a global trend Employee Services  Personal Services: o Credit unions o Counselling services o Employee Assistance Programs (EAPs) o Other personal services (social/recreational) Executive Perquisites (Perks)  Management loans  Salary guarantees (golden parachutes)  Financial counselling  Relocation benefits  Outplacement assistance  Company cars, chauffeured limousines  Concierge service Flexible Benefits Programs  Individualized benefit plans to accommodate employee needs and preferences  Constraints: o Employer must limit total cost for each benefits package o Benefit plan must include certain items that are not optional (government mandated benefits)  Advantages: o Employee choose packages that best satisfy their unique needs o help firms meet the changing needs of a changing workforce o Increased involvement of employees and families improves understanding of benefits o Introduction of new benefits is less costly o Cost containment—organization sets the dollar maximum. Employee chooses within that constraint  Disadvantages: o Employees make bad choices and finds themselves not covered for predictable emergencies o Administrative burdens and expenses increase o Adverse selection—employees pick only benefits they will use Lecture 9 (Chapter 14) Why is OHS an HR issue?  OHS is thought of as a people issue - o have to keep employee's safe  It also goes along with compensation o how much is someone paid for the risk that they have to take Strategic Importance of Occupational Health and Safety  Investment in disability and wellness programs create bottom-line returns  In 2012 there were 977 deaths and 245,365 injuries resulting from accidents at work  Workplace accidents can be prevented Changing Perspectives on Risk and Liability  Video: Triangle Shirt Waist Factory Fire o 160 died, fire broke out at a factory on the 8th floor, exit doors were closed,  Assumption of Risk o Prominent legal doctrine until early 20th Century  Accident Proneness  21st Century  Modern health and safety programs recognize that enhancing OHS required cooperation among multiple stakeholders Occupational Health and Safety (OHS) Legislation  Based on principle of joint responsibility between workers and employers  Intended to minimize work-related accidents and illnesses  Laws fall into three categories: o General health and safety rules o Rules for specific industries (e.g. mining) o Rules related to specific hazards (e.g. asbestos) OHS Legislation in Ontario  Occupational Health and Safety Act (OHSA)  Workers Compensation o Workplace Safety and Insurance Act (WSIA) Health and Safety in the Workplace  Growing emphasis on health and safety in the workplace due to: o Strong union pressure o Increased public interest in greater corporate responsibility o Better and more comprehensive federal and provincial legislation and health and safety measure Workplace injuries and Health Hazards  Workplace accidents and occupation-related illnesses: o About 4 Canadian workers die every working day from occupational injury or disease o $8 billion annually in direct compensation o More than $19 billion including indirect expenses Employer Responsibilities  Take every precaution to ensure the health and safety of workers (due diligence)  Specific duties include: o Filing government accident reports o Maintaining records o Ensuring that safety rules are enforced o Posting safety notices and legislative information Employees Responsibilities and Rights  Take reasonable care to protect their own health and safety, and that of co-workers  Includes wearing protective clothing and equipment, and reporting contravention of the law  Basic Rights: o To know
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