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Employee Terminations Affect Benefits

Employee Terminations Affect Benefits

When employees quit, the termination of their benefit package is quite simple and straight forward. Then there are the other terminations; for pregnancy, (temporary), on going medical challenges, under performance, and a host of other reasons.

Some employers take it upon themselves to tell employees they will keep the benefits in force for them for an extended period of time as part of the termination package. Don't promise anything regarding benefits until you speak to your provider.

  • Almost all benefit packages require an employee to qualify for benefits by working a minimum number of hours a week. If terminated, they are working zero hours. Most health care, paramed services, prescription drugs, and dental plans can be continued with permission for a valid reason.
  • Any LTD benefits or STD cannot, as a rule, be extended.
  • Most insurers are flexible with terminated employees and portions of the benefit plans, but they must approve everything first. Do not make the mistake of making promises, which may not be able to be kept, to a terminating employee, it could be costly.

The Benefit Guys can help you before this kind of thing becomes a real problem. If you are concerned at all, give The Benefit Guys a call at 519-622-3347 and let us give you a hand.

The Benefit Guys offer affordable, meaningful options. Whether you already have a benefits plan or are considering implementing your first one, call for a personal, confidential discussion. We have access to the best plans and the best advice available today.

"No matter how many employees you have - it's perfect. And it starts with one!"

Our Best Practices Annual Review is available for download. You need to reduce your benefits liability exposure. The content in this document will help you.