August 2009 Bulletin
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Celebrating 10 Years of Business!
Thank you for all your support! |
Just a Reminder,
As independent brokers we have the ability to go to any insurance company to get insurance quotes. If you are looking at your group benefit plan (or know of another company who is) and are wondering if you are using your dollars in the most efficient way possible please contact us and we will be happy to discuss this with you.
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Facing Cutbacks?
The Work-Sharing (WS) Program May Be for You!
by Dave Tadman, CA
You have worked so hard to get the right people in place to allow your business to grow and be successful, but the recent economic downturn has caused you to re-evaluate your costs in order to survive. The Work-Sharing program enables employers to face cutbacks and still avoid layoffs of those valuable employees.more...
Policies and the Employer-Employee Contract
by Kim Macey, CHRP
As a business owner and an employer, a focus on the practices and policies in your company that have a direct impact on the company's most important asset - the employees. Each company will find the right mix of written and unwritten policies and procedures. However, every company regardless of its size, its location and its purpose must deal with human resources issues in one way or another.more...
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Any Questions, Suggestions?
Please feel free to contact us with any questions or ideas you may have, we would love to here your feed back!
Just click the link below
www.beneco.ca
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 Facing Cutbacks?
The Work-Sharing (WS) Program may be for you!You have worked so hard to get the right people in place to allow your business to grow and be successful, but the recent economic downturn has caused you to re-evaluate your costs in order to survive. The Work-Sharing program enables employers to face cutbacks and still avoid layoffs of those valuable employees.
Work-Sharing (WS) Program
Work-Sharing is an adjustment program designed to help employers and workers avoid temporary layoffs when there is a reduction in the normal level of business activity that is beyond the control of the employer. The measure provides income support to workers eligible for EI benefits who are willing to work a temporary reduced work-week.
It is a three-party agreement that must be agreed upon by both employee and employers and approved by Service Canada.
Advantages to both the Employer and Employee:
- Employers retain staff and adjust their work activity during temporary work shortages;
- Employers avoid the expenses of hiring and training new staff once business levels return to normal; and
- Employees retain their skills and jobs while receiving Employment Insurance benefits for the days that they do not work.
Who is eligible?
Assessment Criteria:
- An employer who is experiencing a temporary unexpected and unavoidable reduction in business activity.
- An employer who has tried to prevent employee layoffs through other means.
- The community context in which the employer is operating.
- A Recovery Plan that demonstrates that the business can be maintained during the period of the WS agreement.
Eligible Employers must:
- Have been in year round business in Canada for at least 2 years.
- Show that the need for reduced hours in unavoidable.
- Show that the work shortage is temporary and unexpected.
- The work shortage must also be significant enough to warrant support of the program (i.e. a demonstrated decrease in sales/orders of at least 10%).
- Demonstrate (through a recovery plan) how the business will be maintained for the duration of the agreement and return to normal working hours as the economy strengthens.
- Include a reduction in work activity between a minimum of 20% of the employees' regular work schedule and a maximum of 60% (i.e. one to three days).
- A minimum of two employees is required for a WS agreement.
- Not be undergoing a labour dispute.
- Have the agreement of the union (if applicable) and employees.
Eligible Employees must:
- Be core staff (year round permanent full-time or part-time employees who are required to carry out the functions that will lead to recovery).
- Be eligible to receive regular EI benefits.
- Not be participating in a labour dispute.
Timing/Deadlines:
- Unlike other EI benefits, WS participants do not have to serve a 2 week waiting period - although it may take up to 28 days for the first cheques to arrive.
- The minimum duration of WS is 6 weeks and maximum of 52 weeks (extended provision until April 3, 2010 from the normal max of 26 weeks with ability to extend up to 38 weeks).
- Applications must be submitted at least one month prior to the anticipated start date.
Administration requirements for employers:
- A Recovery Plan focusing on the steps the employer will take to remain viable within the timeframe of the agreement.
- Completion of a Utilization Report every week detailing the number of hours worked by each employee participating in WS.
Other considerations:
- Benefits received are taxable and are often not taxed at source.
- Does not affect workers' rights to regular EI benefits if they happen to be let go after the agreement ends.
- Does not impact your health benefits or statutory holiday pay.
Process for Application
If you meet the above eligibility requirements, employers must fill in the application found on the Service Canada website. See http://www.servicecanada.gc.ca/eng/work_sharing/index.shtml for more details and start your application process.
The key to a successful WS agreement is maintaining communication with all of your employees through the work shortage.
David Tadman, CA is a partner at Stawowski McGill & Partners LLP, providing surrogate CFO level services to private business owners to guide and teach them how to build and lead successful businesses over the long term. For more info please visit www.stawowskimcgill.ca.
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Policies and the Employer-Employee Contract
by Kim Macey, CHRP
VP, HR & Administration
Benefits By Design
As a business owner and an employer, a focus on the practices and policies in your company that have a direct impact on the company's most important asset - the employees. Each company will find the right mix of written and unwritten policies and procedures. However, every company regardless of its size, its location and its purpose must deal with human resources issues in one way or another.
At a minimum, employers need to ensure terms of employment are conveyed to employees. Ideally policies and terms of employment should be in writing, signed off by both the employer and employee. An employee letter should include terms of employment, probation period, position title, compensation amount, information regarding group health benefits, vacation/ sick/ leave benefits and entitlements, and a termination clause.
Employers can be pro-active by preparing written policies regarding benefits entitlements, impact of benefits while an employee is on leave and ensure all employees are aware of the policies.
Policies are an important component of the employer-employee contract as they ensure terms of employment are understood by all, therefore not allowing any surprises when a situation arises.
Types of leaves
Maternity/Parental and Adoption
The services of an employee on maternity/parental/Adoption leave are deemed to be continuous for calculating vacation entitlements, notice of termination, and employee benefits.
Where the employer bears the total cost of a benefits plan, or the employee chooses to continue to pay his or her share of the cost of the plan, the employer MUST continue to contribute to the benefits plans while the employee is on leave.
When an employee resumes work after the leave expires, the employee is entitled to all wage increases and benefits to which he or she would have been entitled to had the leave not been taken.
Vacation entitlement which is based on 12 months of employment, and other employment rights based on service, include the periods when an employee is on maternity/parental/adoption leave.
The employer must place an employee in the position held before the leave commenced or in a comparable position.
No employer shall dismiss, suspend, lay off, demote, or discipline an employee because she or he has applied for maternity or parental leave and no employer shall take into account the intention to take leave in regards to promote or train employees
Compassionate Leave
Every employee is entitled to unpaid compassionate care leave from employment for up to 8 weeks to provide care or support to a family member.
Employees must submit a request for leave in writing and accompany it with a medical practitioners certificate stating the family member has a serious medical condition with a risk of death within 26 weeks.
The services of an employee on compassionate leave are deemed to continuous for calculating vacation entitlements, notice of termination and employee benefits.
Where the employer bears the total cost of a benefits plan, or the employee chooses to continue to pay his or her share of the cost of the plan, the employer MUST continue to contribute to the benefits plans while the employee is on leave.
Short Term and Long Term Disability
Ensure you are familiar with your benefits providers' terms in regards to leaves relating to illness.
Ensure your employment policies address extended health and dental health benefits during health related leaves.
Employment policies do not need to be long or complicated but possess enough detail to ensure understanding of the benefits and terms of employment. Further it is recommended employers contact their benefits provide to assure they understand their benefits contracts and any limitations.
There are many on-line resources for building HR policies. Employers can also contact other employers in similar sectors and request copies of their employee handbooks to use as a guide. Policies are important to develop to ensure there is protection and understanding for both the employer and employee.
RESOURCES
1) The Employment Standards sets out the minimum standards that apply in most workplaces Alberta and Saskatchewan.
http://employment.alberta.ca/SFW/1224.html
http://www.labour.gov.sk.ca/LS/
2) Canada Labour Code - federally regulated companies sets out minimum standards that apply to workplaces under code jurisdiction
http://www.hrsdc.gc.ca/en/lp/lo/fll/part3/index-fll.shtml
3) Sample HR Polices and Resources
http://humanresources.about.com/od/policysamples/a/policy_samples.htm
4) Best Practices: Employment policies that Work published by Thomsom-Carswell.
http://www.carswell.com/description.asp?docid=4026
5) Ultimate HR Manual-Western Edition - published by CCH: a Wolters Kluwer business
http://www.cch.ca/business/uhrmw/index.aspx?tid=6
6) Service Canada - Employment Insurance Information
http://www.servicecanada.gc.ca/eng/ei/menu/eihome.shtml
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Tell your friends!
The Benefit Specialists Corp. is more than willing to answer any questions you or anyone you know may have. If you know someone who has questions regarding the insurance industry or anyone who wants to join our mailing list please contact me, or forward this email to them and get them to click the join our mailing list button below.
Thanks!
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Sean Murray
The Benefit Specialists Corp.
sean.murray@beneco.ca
403-547-5236 |
| The information contained in this bulletin is for general information purposes only. The articles published in this bulletin have been collected by The Benefit Specialists Corp. (TBSC) and we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability or availability with respect to the information, products, services, or related graphics contained. Any reliance you place on such information is therefore strictly at your own risk. In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits out of, or in connection with, the use of the information contained in this bulletin. Through this bulletin you are able to link to other websites which are not under the control of TBSC. We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them. |
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