Navigating your benefit plan at times of leave or termination can be confusing. Never assume anything or promise anything to your employees before speaking with us. If any of these apply to you, always contact us right away.
Benefit Termination
- When terminating an employee, you may want or need to extend benefits depending on the situation.
- Please ask our office for approval from your insurer
- Always ensure employees are aware of the conversion options for each benefit.
- Use the Exit Letter Template we have provided to you. If you can’t find it, we are happy to send it again. Just let us know.
- Most insurers will not continue some benefits.
- Please have your employee contact our office for availability & pricing of alternatives.
- Failure to continue benefits, in some situations, may become a liability for your company.
- The Canadian Human Rights Act prohibits discrimination by disability, meaning you cannot fire someone due to a perceived disability (or discontinue their benefits).
- In these cases, we recommend consulting a labour lawyer.
- Always give employees adequate time to review and convert coverage as needed. We recommend a minimum of 30 days’ notice in writing.
Statutory Leave
- All benefits should remain in place during statutory absences such a parental leave and jury duty.
- Waiving benefits causes a reset to coverages that have pre-existing condition rules.
- Rules change all the time, usually due to court findings. Do not assume what you have done before still applies.
On-going Best Practices
- At least twice a year, send out a reminder email that travel insurance is subject to a stability clause. Travel claims must be sudden and unexpected.
- If you have employees with LTD who have not purchased up to their maximum available, inform them quarterly, in person, and send them an email to document your conversation.
- Employee information (salaries) should always be kept current on your insurer portal. Failing to do so can have liability issues.
- Always remember to enroll employees in the benefit plan on day one of their employment (if they are eligible).
*The information contained on this sheet should not be considered legal, employment, tax, human resource, accounting, or insurance advice. This is for information purposes only.
This is a start, not a complete list.
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