BUS 381 Lecture Notes - Canada Pension Plan, Severance Package, Life Insurance
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By Mark Liangco | BUS 381
Chapter 13 (Week 10)
Required by law
1) Employment insurance
- A federal program that provides income benefits if a person is unable to work through no fault of his or her
2) Canada Pension Plan
- Basic financial security after retirement.
3) Worker’s compensation
- Provides income and medical benefits to victims of work related accidents, illness and ot their dependants,
regardless of fault.
4) Vacation and Holidays
- Minimum amount of paid vacation
5) Leaves of Absence
- Unpaid leave of absences for proper reasons
6) Pay on Termination of Employment
- Pay to employees that are terminated
o Pay in Lieu of Notice
If employees are not given an advanced written notice, managers need to pay them a
sum equal to the their pay for the notice period.
o Severance Pay
If you are terminated and the company is large (income expense is $2.5m per year), you
can be paid a severance package.
o Pay for mass layoffs
If an organization terminates a lot of employees (50), you are eligible to additional pay
(between 6-18 weeks).
Employer sponsored benefits
1) Life insurance
2) Supplementary health care
3) Short term disability / sick leave
- Plans that provide pay to an employee when he or she is unable to work because of non-work related
illness or injury.
4) Long term disability
- Half pay to those who used up their short term disability leave.
o Disability management: assists disabled employees with return to
reduced work hours, reduced work duties, workstation modification
o Mental Health Benefits:
Depression, alcoholism etc
5) Additional leave of absences
6) Additional paid holidays
7) Retirement benefits
- Benefits traditionally used to reward loyalty and tenure
- employee services more important today in post-job security era
- benefits administration increasingly specialized
Example: Lead poison recovery for 2 months
- Unused sick leave and vacation
- Short term disability
- Workers compensation