HRM200 Lecture Notes - Lecture 10: Employee Assistance Program, Sick Leave, Critical Illness Insurance

37 views5 pages
HRM200: Chapter 13 – Employee Benefits and Service
Employee Benefits
-Indirect financial payments given to employees
-May include supplementary health and life insurance, vacation, pension, education plans, and
discounts on company products
-Becoming larger part of total compensation
-Useful in attracting talent
-Increasingly important for aging workforce
Government-Mandated Benefits
-Employment insurance: federal program that provides temporary financial assistance if an
eligible person is unable to work through no fault of his or her own:
oGenerally 55% of average earnings during last 14-45 weeks of qualifying period
oEligibility  restricted to persons who have paid into the account, worked a minimum
number of hours in a specified time, and willing/able to work
oBenefit period  worked a minimum number of hours during minimum number of weeks
(“qualifying period) + waiting period from last day of work
oFunding  funded by contributions from eligible employees and employers (employees
pay 1.4 times employer contribution)
Employer contributions are reduces if employer provides a wage loss
replacement plan for employee sick leave
oSupplemental unemployment benefit (SUB)  agreement between employer and
employees (collectible bargaining) enabling employees eligible for EI to receive
additional benefit from a SUB fund  helps maintain standard of living by receiving
combined benefit closer to working wage
Work-sharing programs:
-Pay on termination of employment:
oDoes not apply to those on short-term contract or fired for just cause
oAmount of payment varies according to jurisdiction and circumstances:
Pay in lieu of reasonable notice: a lump-sum equal to employee’s pay for the
notice period provided to employees who cease working immediately
Severance pay (Ontario and federal jurisdiction only)  in addition to pay in
lieu of reasonable notice and additional payout on top of minimum notice period
requirements and applies to specific conditions
Ontario: employees with 5 or more years of service are eligible
Pay for mass layoffs (some jurisdictions)  additional pay must be provided
when lay-off of 50 or more employees occur (pay ranges from 6-18 weeks)
-Leaves of absence
oUnpaid time off
oConditions vary by jurisdiction
oEmployer must guarantee same or similar job when employee returns
oCommon types:
Maternity/parental leave
Parental/adoption leave
Bereavement leave
Compassionate care leave
find more resources at
find more resources at
Unlock document

This preview shows pages 1-2 of the document.
Unlock all 5 pages and 3 million more documents.

Already have an account? Log in
-Canada/Quebec Pension Plan (CPP/QPP)
oPrograms that provide basic level of security on retirement
oThree types:
Retirement income (25% of average earnings adjusted for inflation up to
average inflation level)  receive between ages of 60-70
Survivor of death benefits (paid on death of plan member)  lump sum is made
on plan member’s estate and monthly pension to spouse/children
Disability benefits (paid for severe disabilities expected to be permanent or to
last for extended period)  75% of pension benefit earned at date of disability +
flat-rate per child
oBenefits based on individual contributions made
-Workers’ compensation
o“no fault” insurance plan
oincome and medical benefits to victims of work related accidents or illneeses, regardless
of fault
oFunded collectively by employers
oAdministers by jurisdictional workers’ compensation boards
-Vacations and holidays
oVacation: minimum amount of paid vacation must be provided to employees
oHoliday: varies by jurisdiction (minimum 5, maximum 9)
oPaid breaks: uninterrupted break within a work day (30 minute break on a shift over 5
Voluntary Employer-Sponsored Benefits:
-Life insurance
oGroup plans offer lower rates and inclusion of all employees (regardless of health or
physical condition)
oAdditional benefits:
Accidental death coverage: fixed-lump sum in addition to life insurance
benefits when death is accidental
Dismemberment coverage: same as above  due to dismemberment
Critical illness insurance: lump-sum benefit to employee diagnosed with and
survives life-threatening illness (bridges gap between life insurance and disability
-Supplementary healthcare/medical insurance
oSupplements provincial healthcare plans
oGroup rates lower than individual rates
oEmployee usually pays a yearly deductible amount
Deductible: annual amount of health/dental expenses that an employee must pay
before insurance benefits will be paid
oUsually includes prescription drugs, private/semi-private hospital rooms, other health
costs not covered by provincial plans
oMay include dental, vision care, hearing aids
-Short-term disability and sick leave plans
oShort-term disability plan: provides income to employees when absent due to non-work
related injury or illness
oRequires medical certificate
find more resources at
find more resources at
Unlock document

This preview shows pages 1-2 of the document.
Unlock all 5 pages and 3 million more documents.

Already have an account? Log in

Get access

$10 USD/m
Billed $120 USD annually
Homework Help
Class Notes
Textbook Notes
40 Verified Answers
Study Guides
1 Booster Class
$8 USD/m
Billed $96 USD annually
Homework Help
Class Notes
Textbook Notes
30 Verified Answers
Study Guides
1 Booster Class