17 Apr 2012
School
Department
Course
Professor
Chapter Thirteen: Employee Benefits and Services
MHR Notes
Pension Plan – plans that provide income when employees reach a predetermined retirement age
Employee benefits – indirect financial payments given to employees. They may include supplementary health
and life insurance, vacation, pension, education plans and discounts on company products
- helps develop loyalty, increase ability to attract and retain employees but very expensive
Government Sponsored Benefits in Canada
1. Employment insurance – a federal program that provides income benefits if a person is unable to work
through no fault of his or her own
2. Canada/Quebec Pension Plan – programs that provide three types of benefits: retirement income, survivor
or death benefits payable to the employee’s dependents regardless of age at
time of death; and disability benefits payable to employees with disabilities
and their dependents. Benefits are payable only to those individuals who
make contribution to the plans and/or available to their family members
3. Workers Compensation – provides income and medical benefits to victims of work-related accidents or
illnesses and/or their dependants, regardless of fault
4. Vacation and Statutory Holidays – employment standards legislation sets out a minimum amount of paid
vacation that must be provided to employees, usually two weeks per
year, but the requirements vary by jurisdiction
5. Leaves of Absence – maternity/parental leave, bereavement, compassionate care
6. Pay on Termination of Employment – pay in lieu of notice (employee must be provided with advance
written noticed if the employer is going to terminate employee),
severance pay, pay for mass layoffs
Voluntary Employer-Sponsored Benefits
1. Group life insurance – provided at lower rates for all employees; also accidental death and
dismemberment, critical illness
- deductible – the annual amount of health/dental expenses that an employee must
pay before insurance benefits will be paid
- coinsurance – the percentage of expenses (in excess of the deductible) that are paid
for by the insurance plan
2. Supplementary health care/medical insurance – prescription drugs, dental, physiotherapy, etc.
3. Short term disability – and sick leave provide pay to an employee when he or she is unable to work because
of a non-work related illness or injury
4. Long term disability – income protection for long term illness tht is not job related
5. Additional leaves of absence
6. Additional paid vacations and holidays