Weeks 11 & 12 Flashcards
Benefits account for what percentage of payroll?
37% (which is a significant amount of Employee Total Compensation)
Government-Mandated Benefits include
EI, Reasonable / Advanced Notice, Severance Pay, Leave if Absence, CPP / QPP, Workers comp, Paid time off
Employment Insurance (EI)
Financial assistance to eligible persons who are laid off, terminated without just cause, or who quit their job for a justifiable reason (such as harassment)
Reasonable / Advanced Notice
Notice given to employees prior to last date of employment (one week per year of employment to a specified max). Typically, employers prefer pay in lieu of reasonable notice
Severance Pay
Payment provided to employees who are laid off or terminated. Employees only in ON and the federal jurisdiction may be eligible. The amount of severance pay is one week’s pay for each year of employment
(max 26 weeks)
Leave of Absence (3 examples)
Maternity leave (15-18 weeks) and parental leave (34-52 weeks) Bereavement leave Compassionate care
CPP / QPP - Reasons / Uses and Eligibility
Provides;
• Retirement income
• Survivor or death benefits payable to employee’s dependents
• Disability benefits for employees with disabilities and their dependents
Employed Canadians between the ages of 18 and 65 are covered, including self-employed individuals.
Workers comp
Provides a prompt, sure, and reasonable income to victims of work- related accidents and illnesses, regardless of fault
Paid Time Off … for…
Vacations
Legislated Holidays
Paid Breaks (lunch break, 30-min uninterrupted break)
VOLUNTARY / EMPLOYER-SPONSORED BENEFITS
- Life Insurance / Flex Benefits, STD / LTD, Sick leave, employer-sponsored pension plans
3 types of Life Insurance / Flex Benefits
Group Life Insurance: provided at lower rates for all employees
Accidental Death and Dismemberment Coverage: fixed lump-sum benefit when death is accidental or in case of accidental loss if limbs or sight
Critical Illness Insurance: lump-sum benefit for employees who are diagnosed with or survive a life-threatening illness
Short Term Disability
Provides pay to an employee when he/she is unable to work because of a
non-work related illness or injury
Sick Leave
Pay to an employee who is out of work due to sickness
Long term disability plans
Provides pay to an employee when he/she is unable to work because of a non-work related long-term illness or injury
Employee Sponsored Pension Plans - 2 examples
Defined Benefit Pension Plan: a plan that contains a formula for determining retirement benefits. Actual benefits are defined ahead of time
Defined Contribution Pension Plan: specifies what contribution the employer will make to a retirement fund set up for the employee. It does not define the
eventual benefit amount, only the periodic contribution to the plan.
Employee Services
Flexible Work Schedules, Personal Services (EAP), Voluntary Job Related Services
5 examples with definitions for FLEXIBLE WORK SCHEDULES
Flextime: core hours are defined, rest of the hours are flex
Telecommuting: working remotely
Compressed Workweeks: work fewer but longer days each week
Job sharing: two or more people share a single full-time job
Work sharing: temp reduction in work hours by a group of employees during economic downturns as a way to prevent layoffs