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Lecture

Chapter 13: Employee Benefits and Services

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Department
Business
Course
BU354
Professor
Shawn Komar
Semester
Winter

Description
Chapter 13: Employee Benefits and Services The Strategic Role of Employee Benefits employee benefits, indirect financial payments given to employee. They may include supplementary health and life insurance, vacation, pension, education plans, and discounts on company products, for instance. Benefits do matter to employees and that if they are aligned with business strategy, they can help to attract and retain the right people to achieve business objectives. Government-Sponsored Benefits Employment Insurance employment insurance, is a federal program that provides income benefits if a person is unable to work through no fault of his or her own. It does not apply to workers who are self-employed. (55% of pay for 45 weeks) Canada/Quebec Pension Plan Canada/Quebec Pension Plan, were introduced in 1966 to provide three types of benefits: retirement income, survivor of death benefits payable to the employee's dependent 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 contributions to the plans and or available to their family members. Worker's compensation worker's compensation, provides income and medical benefits to victims of work related accidents or illness and or their dependents regardless of fault. It includes payment of expenses for medial treatment and rehabilitation, and income benefits during the time in which the worker is unable to work, (temp/perm), and because of his or her disability. Controlling Worker's Compensation Costs two basic approaches to reducing work's compensation claims 1. safety and health programs and complying with government regulations 2. rehabilitation programs for injured or ill employees Vacations and Holidays the actual number of paid employee vacation days usually varies considerably from employer to employer and how long they employee has worked for the firm. Leaves and Absence the amount of maternity leaves is 17/18 weeks in each jurisdiction (>1yr of work), but parental and adoption leaves range from 8 to 52 weeks. You get six weeks for dying relative (exceptAlberta and NWT) Pay on Termination Pay in Lieu of Notice employee must be provided with advance written notice (time depend on employment length) of the employer is going to terminate his or her employment (unless its a short term contract). Some ask employees you just leave now, and they pay a lump sum of their equal pay of the notice period. This is called “pay in lieu of notice”. Severance Pay employees of Ontario and federal jurisdiction may be eligible for severance pay in addition to pay in lieu of notice in certain termination situations. Severance pay is one week's pay for each year of employment to a max of 26 weeks. The employer must have payroll over 2.5$ mil, and closing down the business with more then 50 employees. Pay for Mass Layoffs when 50 or more employees (10 in NS & Sas) the amount of additional pay ranges from 6 weeks to 18 weeks depending on the province and the number of employees being laid off. www.Sk3tchy.com “my toes are a little sweaty” Voluntary Employer-Sponsored Benefits Life Insurance virtually all employers provide group life insurance, provided at lower rates for all employees, including new employees, regardless of health or physical condition. Accidental death and dismemberment coverage provides a fixed lump-sun benefits in addition to life insurance benefits when death is accidental. Critical illness insurance provides a lump-sum benefit to an employee who is diagnosed with and survives a life- threatening illness. Supplementary Health Care/Medical Insurance Supplementary health-care insurance is aimed at providing protection against medical costs arising from off-the-job accidents or illness. Deductible, the annual amount of health and dental expenses that an employee must pay before insurance benefits will be paid. Reducing Health benefits Costs health care costs are rising, new drugs, aging population. Canada employers pay about 30% of all health care expenses. The way to control and reducing health care cost is to increase the amount of health care costs paid by employees or lowering annual maximums. Restricting a list of drugs allowed, health programs (exercising), risk- assessment programs, and health services spending accounts (where you can spend on whatever you want) Retiree Health Benefits typically include life insurance, drugs, and hospital. Employers can cut costs by increasing retiree contributions, increasing deductibles, tightening eligibility requirements, and reducing maximum payouts. Short Term Disability Plans and Sick Leave Plans Short-term disability plans, provide pay to an employee when he or she is unable to work because of a non-work- related illness or injury. Sick leave plans, different then short-term disability plans where you are granted full pay for a specified number of permissible sick days. However some use this as an extension of vacation days, some employers may try to buy back sick days. Long-term Disability aimed at providing invoke protection or compensation for loss of income because of long-term illness or injury that is not work related. Disability management, is a proactive, employer-centered process that coordinated the activities of the employer, the insurance company, and health-care providers in an effort to minimize the impact of injury, disability, or disease in work's capacity to successfully perform his or her job. Maintaining contact with the injured to get the into return to work process. The most common approaches to retuning a worker with a disability is reduced work hours, reduced work duties, and workstation modification. Mental Health benefits leading cause in short and long term disability claims in Canada. Only 32% report it to their employers. Depression is on of them and manifest itself to alcoholism, absenteeism, injury, physical illness, and lost of productivity. Despite the staggering costs, employers are unprepared to deal with stress, depression, and anxiety in the workplace. Some are trying to prevent the cause with psychiatric counsel
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